Big Beautiful Bill (OBBB) Act: Health Savings Accounts

May 25, 2026

On July 4, 2025, President Trump signed the One Big Beautiful Bill (OBBB) Act into law. Among its many tax-related provisions, the Act introduces several important changes affecting Health Savings Accounts (HSAs) , expanding eligibility and increasing flexibility in how HASs may be used.

Below is a summary of the Key HSA-related changes under the Act.

What Is an HSA?

A Health Savings Account (HSA) is a tax-advantaged account that allows eligible individuals to save money for qualified medical expenses. To be eligible to contribute to an HSA, you generally must:

• Be covered by a High Deductible Health Plan (HDHP)

• Not be covered by other disqualifying health coverage or enrolled in Medicare

• Not be claimed as a dependent on another taxpayer’s return

Key HSA Changes Under the OBBB Act

1. Telehealth will not affect HSA eligibility (Permanent)

Under prior law, HDHPs were allowed to cover telehealth services before the deductible was met only on a temporary basis.

The OBBB Act makes this rule permanent.

Starting with plan years after December 31, 2024, a health plan will still qualify as an HDHP even if it provides telehealth or other remote care services at no cost before the deductible is met.

What this means for you:

• You can use telehealth services before meeting your deductible

• Your plan will not lose HDHP status

• You can continue contributing to your HSA

• This rule is now permanent, not temporary

2. Bronze and Catastrophic plans may qualify as HDHPs

Beginning after December 31, 2025, certain bronze and catastrophic health plans offered through the Health Insurance Marketplace may qualify as High Deductible Health Plans (HDHPs).

What this means for you:

If your bronze or catastrophic plan meets HDHP requirements, you may be eligible to contribute to an HSA.

3. HSAs can be used with Direct Primary Care (DPC)

Beginning after December 31, 2025, individuals enrolled in an HDHP may also participate in a Direct Primary Care (DPC) arrangement and continue contributing to an HSA, subject to certain limits.

What this means for you:

• You may combine an HDHP with a direct primary care arrangement

• HSA eligibility is maintained if the arrangement covers only primary care services

• Monthly fees must not exceed $150 for individual coverage or $300 for family coverage

Why These Changes Matter

The OBBB Act makes HSAs more flexible by:

• Permanently allowing telehealth coverage before the deductible is met

• Expanding which health plans qualify as HDHPs

• Supporting alternative care models like direct primary care

These changes may help individuals and families save on taxes while managing healthcare costs more effectively.