What’s Happening?
The Treasury Department and IRS released new guidance (Notice 2026-05) about changes to Health Savings Accounts (HSAs) under the One, Big, Beautiful Bill (OBBB). These changes make it easier for more people to qualify for and use HSAs, which let you save and pay for healthcare costs tax-free.
Key Changes to HSA Eligibility
- Telehealth & Remote Care (starting Jan. 1, 2025): You can keep using telehealth or remote care services before meeting your deductible and still contribute to an HSA. This rule is now permanent.
- Bronze & Catastrophic Plans Count as HDHPs (starting Jan. 1, 2026): Normally, only high-deductible health plans (HDHPs) qualify for HSAs. But under the OBBB, bronze and catastrophic plans will also count as HDHPs.
o This means people with these plans can contribute to HSAs.
o The plans don’t have to be bought through the Exchange to qualify. - Direct Primary Care (DPC) Arrangements (starting Jan. 1, 2026): If you’re enrolled in certain direct primary care service plans, you can:
o Contribute to an HSA.
o Use HSA funds tax-free to pay your regular DPC fees.
Why Does This Matter?
- More people qualify: These changes open HSAs to millions who couldn’t use them before.
- More flexibility: You can use HSAs with telehealth, bronze/catastrophic plans, and direct primary care.
- Tax savings: Contributions are tax-free, and spending on eligible healthcare costs is tax-free too.
Read more…