Big Changes to HSAs Under the OBBB: What You Need to Know
What Is an HSA and Why It Matters
A Health Savings Account (HSA) is a tax-advantaged account designed to help individuals save for qualified medical expenses. HSAs are often described as “triple-tax-advantaged” because:
1. Contributions reduce your taxable income.
2. Growth inside the account (interest, dividends, or investment gains) is tax-free.
3. Withdrawals for qualified medical expenses are also tax-free.
This combination makes HSAs one of the most powerful tools for minimizing taxes while preparing for healthcare costs. For example, if you contribute $3,000 to an HSA, you immediately lower your taxable income by that amount. Over time, those savings can compound, creating a flexible pool of funds you can use for medical expenses now or in retirement.
The OBBB and Its Impact on HSAs
The One Big Beautiful Bill (OBBB), passed in late 2025, introduces sweeping changes to HSAs, making them more accessible and practical for millions of Americans.
Key Changes
• Telehealth Services Made Permanent 🩺
Beginning January 1, 2025, individuals can use telehealth services before meeting their deductible and still contribute to an HSA.
• Bronze and Catastrophic Plans Now Eligible 📊
Starting January 1, 2026, bronze and catastrophic ACA Marketplace plans will be treated as HSA-compatible. This change could add 7.3 million Americans to the pool of eligible participants.
• Direct Primary Care (DPC) Memberships Included 👩⚕️
From 2026, individuals enrolled in certain DPC arrangements can contribute to HSAs, and membership fees will count as qualified medical expenses.
Why These Changes Matter
• Broader Eligibility: Millions who previously couldn’t open HSAs now can.
• Affordable Options: Bronze and catastrophic plans paired with HSAs create cost-effective healthcare strategies.
• Flexibility in Care: Telehealth and DPC memberships expand how you can use HSA funds.
For beginners, this means HSAs are no longer limited to those with traditional high-deductible plans. The OBBB opens the door for more people to enjoy tax savings while managing healthcare costs.
Risks and Considerations ⚠️
• Medicare Restrictions: Contributions stop once you enroll in Medicare.
• Plan Fit: Not all bronze or catastrophic plans may suit your healthcare needs.
• Evolving Guidance: The IRS may issue further clarifications as implementation unfolds.
Final Thoughts
The OBBB marks a historic expansion of HSAs, making them accessible to millions more Americans. For individuals and families, this means greater flexibility in managing healthcare costs and building long-term savings.
If you’re wondering how these changes fit into your personal financial strategy, now is the perfect time to act. Contact us today to evaluate how an HSA can complement your healthcare planning, minimize taxes, and strengthen your long-term tax strategy.
