On July 4, President Trump signed the budget reconciliation bill (“One Big Beautiful Bill Act”) into law, bringing impactful, indefinite extensions to two key pre-pandemic employee benefits. Here’s what employers need to know:

High Deductible Health Plans (HDHPs) and Telehealth

What’s Changed?
For HDHPs beginning after December 31, 2024, employers can now cover telehealth (virtual) or remote care services before employees meet their deductible, without affecting employees’ eligibility to contribute to a Health Savings Account (HSA).

What This Means:

• Employers may opt to allow first-dollar telehealth or remote care coverage.
• Employees can access telehealth services without first hitting their deductible and still contribute to their HSA.

Action Steps for Employers:

• Determine if you’ll offer this expanded telehealth coverage.
• If you do, amend your benefits plan document to reflect the changes.
• Notify all eligible employees about the updated benefit.

Student Loan Repayment Benefits

What’s Changed?

Employers can continue to pay or reimburse up to $5,250 per year of an employee’s student loans tax-free through a written educational assistance program. Importantly, the annual limit will increase incrementally beginning in 2027.

Employer Requirements:

• Have a written educational assistance program in place.
• Provide reasonable notice of the benefit and its terms to all eligible employees.

What Employers Should Do:

• Remove expiration dates from program documents.
• Notify employees about the permanent extension and upcoming limit increases.
• Consider updating the program language to state that the reimbursement limit matches the current legal maximum, reducing the need for future amendments.

Nicholle Peterson, Employee Benefits Manager comments, 

“These changes offer employers both flexibility and a competitive edge when designing benefits. Allowing pre-deductible telehealth services can improve access to care, while expanded student loan repayment benefits provide meaningful financial support to employees. Employers should act promptly to update plan documents, communicate changes, and ensure compliance.”