SB 763, the Telehealth Expansion Act of 2025, would permanently extend a tax-code safe harbor that allows high deductible health plans to cover telehealth and other remote care services before the deductible is met without losing their high deductible health plan status. The bill amends section 223 of the Internal Revenue Code so that plans are not disqualified merely because they do not impose a deductible for telehealth services.
The measure is retroactive to plan years beginning after December 31, 2024, making the change effective for current and future plan years. In practical terms, it would preserve an employer and insurer option that has been used to encourage telehealth access, especially for patients enrolled in health savings account-eligible high deductible health plans.
Impact
The bill would amend the Internal Revenue Code of 1986 by permanently revising the rules governing high deductible health plans under section 223. It would remove the expiration of the telehealth safe harbor and clarify that telehealth and other remote care services can be covered without a deductible while still preserving HSA eligibility. The main affected parties are employers, health insurers, plan administrators, and enrollees in high deductible health plans, particularly those using telehealth for routine or ongoing care.
Sentiment
The available context suggests generally favorable sentiment toward the bill, as it was introduced by Senators from both parties and framed as a continuation of an existing telehealth policy rather than a new mandate. There is no recorded committee debate or vote history in the provided materials, but the bipartisan sponsorship indicates support for maintaining telehealth flexibility for health plans.
Contention
No specific objections or contested issues are documented in the provided committee materials or vote history. The likely policy question underlying the bill is whether telehealth coverage should remain exempt from deductible requirements in high deductible health plans on a permanent basis, balancing expanded access to remote care against concerns about preserving the traditional structure of HSA-eligible plans and associated cost-sharing rules.