Important New HSA and FSA Flexibilities Under the One Big Beautiful Bill Act

Big News for Employee Benefits in 2025 and 2026

Congress just passed the One Big Beautiful Bill Act, and it’s bringing some helpful changes to Health Savings Accounts (HSAs), FSAs, and the plans many employees use. Here’s a quick overview of what’s coming and how it might impact you and your team:

More Plans Will Be HSA-Qualified

Starting January 1, 2026, Bronze and Catastrophic plans on the ACA exchange will count as “HSA-qualified.” In plain English, this means employees with these plans—who couldn’t use HSAs before—will soon be able to open and contribute to an HSA. This gives people more flexibility to save for medical expenses, even if they don’t have a traditional high-deductible health plan.

Easier Use of HSAs for Direct Primary Care

There’s good news for anyone using (or considering) direct primary care (DPC). Beginning in 2026, HSA funds can be used—tax-free—to pay DPC fees, as long as the monthly charge is $150 or less for an individual ($300 for family coverage). The law also makes it clear that enrolling in DPC won’t disqualify anyone from using an HSA.

Telemedicine, Now Even More Flexible

If you’re offering (or want to offer) telemedicine coverage, there’s more flexibility now. Starting with plan years after December 31, 2024, HSA-qualified high-deductible health plans can cover telemedicine visits before employees meet their deductible—without affecting their HSA eligibility. This makes it easier to support employees who want convenient, virtual care.

Additional Highlights

• HSA Catch-Up for Couples: Married couples can make their catch-up HSA contributions into the same account. No more splitting contributions between two accounts.

• Dependent Care FSA Perks: Employers can now partner with others—or hire outside providers—for child care services, and potentially qualify for the federal child care credit.

If you’re thinking about updating your benefits, now is a great time to review your plans and talk with your team.

• Check In With Your Benefits Team: Talk with your benefits broker or consultant about these HSA changes so you know exactly how they’ll affect your plans—both now and down the road.

• Update Your Plan Documents: If you want to offer the higher Dependent Care FSA limit, you’ll need to update your Section 125/FSA plan documents. (If Sentinel Group handles your FSA, keep an eye out—more info is coming later this year on how to make this change.)

• Make Sure Your Systems Match: If you decide to raise the Dependent Care FSA limit, double-check that your enrollment and payroll systems are set up for the new maximum.

CIP has been managing HSA and FSA plans in-house for years, and it’s a core part of how we help companies of all sizes get the most out of their benefits. If you have questions or want to talk through how these new rules might affect your team, just let us know—we’re here to help.