New Federal Updates: What Employers Need to Know About Telehealth and Student Loan Repayment Benefits

Published July 15, 2025 | Compliance, Benefits, HR News

On July 4, 2025, President Trump signed the One Big Beautiful Bill Act into law, making two important employee benefit provisions permanent: expanded telehealth coverage for High Deductible Health Plans (HDHPs) and tax-free student loan repayment assistance.

These updates give employers across the country the opportunity to enhance their benefit offerings while staying compliant with federal regulations.

Telehealth Coverage for HDHPs: Permanently Expanded

Employers offering High Deductible Health Plans (HDHPs) can now cover telehealth and virtual care services before the deductible is met—without impacting employees’ eligibility to contribute to a Health Savings Account (HSA).

This applies to HDHPs beginning after December 31, 2024.

What Employers Need to Know:

• This is optional: You are not required to make this change, but you may choose to.

• If you opt in, you should:

  • Amend your plan documents

  • Notify your employees of the update

This change reflects the continued shift toward flexible, accessible healthcare and provides an excellent opportunity to modernize your benefits.

Student Loan Repayment Assistance: Tax-Free and Here to Stay

Employers can now pay or reimburse up to $5,250 per year toward employees' student loans—tax-free—under a qualified Educational Assistance Program.

Previously a temporary COVID-era provision, this benefit is now permanent and will see incremental increases starting in 2027.

Action Items for Employers:

• Review and update your Educational Assistance Program:

  • Remove any expiration dates

  • Consider stating that the benefit will align with the federally allowed annual limit, so you don’t need to update it each year

• Provide clear communication to all eligible employees about the availability of this benefit

This is a powerful way to support employee financial wellness while remaining competitive in today’s job market.

Final Thoughts

These federal updates provide employers with new ways to offer meaningful, future-focused benefits to their teams. Whether it’s helping employees access affordable care or tackle student debt, these programs can make a lasting impact on recruitment, retention, and employee satisfaction.

At AZ HR Hub, we’re here to help businesses nationwide understand, implement, and communicate benefit changes that keep you compliant and your employees supported.

Need assistance reviewing your benefits documents or updating your employee communications? We’ve got you covered.

linda@azhrhub.com
480-508-1627
www.azhrhub.com

Stay compliant. Stay confident. That’s the AZ HR Hub way.