Details of Public Law 119-21, section 71306 , One Big Beautiful Bill Act

Under federal law, eligible individuals may establish a Health Savings Account (HSA), which provides tax-favored treatment for current medical expenses, as well as the ability to save on a tax-favored basis for future medical expenses. Generally, individuals are eligible to establish an HSA when they are covered by a high-deductible health plan and have no other health coverage (with the exception of plans providing certain permitted benefits/coverage). A high-deductible health plan is permitted to provide telehealth and other remote care services without satisfaction of the plan’s minimum deductible. This means a health plan is still considered a high-deductible health plan even if it fails to require a deductible for telehealth and other remote care services for those plan years. Prior to this act, this law was set to expire for plan years beginning before January 1, 2025.

This provision makes permanent the safe harbor rules that allow plans to include telehealth services absent a required deductible.

California specifically does not conform to federal HSAs and does not conform to the safe harbor for the absence of a deductible for telehealth and other remote care services. As a result, California does not conform to the changes made by this provision.