How to offer telehealth benefits

Details of offering telehealth and telepsych benefits and supplemental accounts that support telehealth, such as HSAs, FSAs, and LSAs.

The good news is that most private insurance carriers offer some form of telehealth and telepsych benefits (especially if you’re located in one of the 42 states that require coverage for this type of care). So if you checked with your group health plan and these types of care are covered, great! But there might be limits to the type of care that’s covered and the amount the private insurer will reimburse.

These accounts can help support your employees’ access to telehealth and telepsych benefits.

Health Savings Accounts (HSAs)

HSAs are a great way to augment the coverage your group health insurance plan offers. Contributions to the account are tax-free, they grow tax-free and distributions for a wide range of qualified medical expenses are tax-free as well. HSA contributions also never expire so employees can save up for their medical “rainy day.”

Recent legislation determined that through December 31, 2024 most telehealth visits should be considered “preventative care” which is 100% covered before deductible under High Deductible Health Plans, the health plan that HSA participants must be co-enrolled in. Money in an HSA account can be used to pay for qualified telehealth services tax-free and telehealth services are often qualified for reimbursement under an HSA.

Flexible Spending Accounts (FSAs)

Contributions to FSAs can be used for a wide range of expenses, including copays and coinsurance requirements that are related to telehealth and telepsych services. FSAs are owned by the employer and don’t roll over from year-to-year like HSAs so they can help to encourage employees to use their money presently to seek the care they need. Money in an FSA account can be used to pay for qualified telehealth services tax-free and telehealth services are often qualified for reimbursement under an FSA.

Lifestyle Spending Accounts (LSAs)

LSAs can be used on a wide range of wellness support services that might not be covered by your group health plan or eligible for payment through an HSA or FSA. Examples of these support expenses include:

Gym memberships
Virtual workout programs or subscriptions
Meditation apps
Wellness apps
Remote coaching or counseling not covered by your health plan

Get started today

Telehealth and telepsych are health services that are increasing in popularity and help to ensure employees are healthier, happier and more productive. In turn, they help employers lower the cost associated with offering benefits, FICA taxes and turnover rates. They also help employers improve the competitiveness of their benefits package. To partner with Lively in offering the most comprehensive benefits package for your budget, reach out today.