The “One Big Beautiful Bill” (OBBB) has officially passed Congress—and it brings some of the most significant updates to Health Savings Accounts (HSAs) in years. Starting January 1, 2026, new rules will expand who can contribute, how funds can be used, and how much employees can set aside tax-free for eligible expenses.
For employers, brokers, and benefit consultants, this is a game-changer. Here’s what to expect—and how to prepare.
Key Tax Favored Account Changes Coming in 2026
The OBBB introduces a wide array of HSA reforms designed to make tax-advantaged healthcare savings more accessible and flexible. Highlights include:
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Expanded Plan Compatibility: Individuals enrolled in Bronze or Catastrophic ACA plans through the individual exchange will now qualify to open and contribute to an HSA.
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Permanent Telehealth Compatibility: Temporary pandemic-era allowances are now permanent. Free Telehealth services will no longer disqualify someone from HSA eligibility, retroactive to plan years starting after December 31, 2024.
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FSA Boost: The dependent care FSA annual contribution limit increases from $5,000 to $7,500, which is the first permanent raise since 1986.
What This Means for Employers and Brokers
This legislation represents a major evolution in consumer-driven benefits. For benefit advisors and employers, now is the time to align your strategy with the new landscape.
Why It Matters
HSAs have long been an underutilized tool in building long-term health and financial wellness. These changes remove several long-standing barriers to participation and give employers more room to offer innovative, meaningful benefit packages.