S.763 - Telehealth Expansion Act of 2025 (119th Congress)
Summary
The Telehealth Expansion Act of 2025 (S.763) aims to amend the Internal Revenue Code of 1986 to permanently extend the exemption for telehealth services from certain high deductible health plan (HDHP) rules. This means that HDHPs would not fail to qualify as such simply because they don't have a deductible for telehealth services. The bill seeks to make permanent an existing exemption, ensuring continued access to telehealth without deductible requirements.
Specifically, the bill amends section 223(c)(2) of the Internal Revenue Code to create a safe harbor for the absence of a deductible for telehealth services. It also removes a clause that limited the application of this exemption to specific time periods, making the exemption permanent.
The bill was introduced in the Senate on February 27, 2025, and referred to the Committee on Finance.
Expected Effects
The primary effect of this bill would be to make telehealth services more accessible to individuals enrolled in high-deductible health plans. By removing the deductible requirement for telehealth, patients can seek remote medical care without having to meet their full deductible first.
This could lead to increased utilization of telehealth services, potentially improving healthcare outcomes, especially for those in rural or underserved areas. It also provides certainty to health plans and individuals, as the exemption would be permanent rather than temporary.
Potential Benefits
- Increased access to healthcare, especially for those in rural or underserved areas.
- Reduced out-of-pocket costs for telehealth services for individuals with HDHPs.
- Encourages early intervention and preventative care through easier access to telehealth.
- Provides certainty for health plans and individuals regarding telehealth coverage.
- Potentially reduces strain on traditional healthcare facilities by diverting appropriate cases to telehealth.
Potential Disadvantages
- Potential for increased healthcare costs overall due to increased utilization of services.
- Possible overuse of telehealth services for non-urgent conditions.
- Risk of fraud and abuse related to telehealth services.
- May disproportionately benefit those with access to technology and reliable internet, exacerbating existing health disparities.
- Could lead to a decrease in in-person medical visits, potentially impacting the quality of care for some patients.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, as it aims to improve healthcare access for Americans. The Constitution does not explicitly address healthcare, but the power to regulate interstate commerce (Article I, Section 8) could be interpreted to allow Congress to regulate health insurance plans that operate across state lines.
Furthermore, the bill does not appear to infringe upon any specific individual rights or liberties protected by the Bill of Rights. It does not establish a religion, restrict free speech, or violate any other constitutional protections.
However, some might argue that the federal government's role in healthcare should be limited, citing principles of federalism and states' rights. The Tenth Amendment reserves powers not delegated to the federal government to the states, and healthcare regulation has historically been a state responsibility.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).