Health Savings Accounts gets expanded!

Big Beautiful Bill impacts HSA plans

HSA Expansion

Only eligible individuals can establish HSAs and make HSA contributions (or have them made on their behalf).

To be HSA-eligible, an individual must:

• Be covered by an HDHP;
• Not be covered by any health plan that provides coverage below the minimum required HDHP deductible, with some limited exceptions;
• Not be enrolled in Medicare; and
• Not be eligible to be claimed as a dependent on another person’s tax return.

Effective January 1, 2026, the OBBB Act expands HSA eligibility by allowing individuals with direct primary care (DPC) arrangements to make HSA contributions if their monthly fees are $150 or less ($300 or less for family coverage). These dollar limits will be adjusted annually for inflation. A DPC arrangement is a subscription‑based health care delivery model where an individual is charged a fixed periodic fee for access to medical care consisting solely of primary care services. In addition, the OBBB Act treats DPC fees as a medical care expense that can be paid for using HSA funds.

Also, to expand the accessibility of HSAs in the individual market, the OBBB Act categorizes as HDHPs all bronze plans and catastrophic plans that are available through an Affordable Care Act (ACA) Exchange. This change is effective January 1, 2026. Bronze plans have the highest deductibles and lowest premiums among the four categories (or metal levels) of individual plans. Catastrophic plans have lower premiums than bronze plans and very high deductibles.

The “One Big Beautiful Bill Act” Includes Changes for Employee Benefits - IMA Financial Group

Commentary by: Raylea Stelmach

Edited by:

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