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Molly Ramsden’s practice focuses on the design, implementation, and ongoing compliance of employee benefits and executive compensation arrangements.

Molly assists employers of all sizes and industries maneuver the complexities of ERISA, the Internal Revenue Code, and all other federal, state, and local laws that impact employee benefits and executive compensation.

In particular, Molly frequently advises clients regarding:

  • Health and welfare plans;
  • Tax-qualified retirement plans (defined benefit pension plans, 401(k)s, 403(b)s, etc.)
  • Equity compensation;
  • Nonqualified deferred compensation (top hat plans); and
  • Various other employment and/or benefits related matters.

Recent legislation allows employers to continue offering first-dollar telehealth coverage without jeopardizing the ability to contribute to a health savings account (“HSA”), but only through the end of the 2024 plan year.

Background – HSA Eligibility

Employees can make and receive pre-tax contributions to HSAs to use for qualified medical expenses. To be “eligible” to make or receive contributions to an HSA, you (a) must be covered by a high deductible health plan (“HDHP”), and (b) may not have other non-HDHP coverage that covers benefits before the HDHP deductible has been met.

Certain types of coverage, like dental and vision care, is disregarded in determining whether an individual is “eligible” to contribute to an HSA. Disregarded coverage does not have to be coordinated with HDHPs. This means that participants can receive “first-dollar” coverage for disregarded coverage and still be eligible to make or receive contributions to an HSA.

Telehealth is Disregarded Coverage Through 2024

Under prior legislation, telehealth coverage provided (i) during plan years beginning before December 31, 2021; and (ii) during the period beginning April 1, 2022 and ending December 31, 2022, is disregarded coverage under the HSA rules. See the CARES Act and the Consolidated Appropriations Act, 2022. 

Continue Reading Employers Can Continue to Cover Telehealth Benefits Before HDHP Deductible Is Met