The United States will see significant changes to its Health Savings Account (HSA) system starting January 1, 2026, following the implementation of the One Big Beautiful Bill (OBB). This legislation, enacted by the Trump administration, was confirmed by the IRS on December 9, 2025, and will allow individuals with Bronze-level and catastrophic health insurance plans to access HSAs tax-free, regardless of whether they meet the traditional definition of a high-deductible health plan (HDHP).
This update is designed to increase flexibility for millions of Americans, enabling them to save for medical expenses more efficiently. Previously, HSAs were restricted mainly to individuals with HDHPs, which are characterized by lower monthly premiums accompanied by higher annual deductibles.
Expanded Access to HSAs
Under the new regulations, individuals enrolled in Bronze and catastrophic plans—known for their low premiums and high out-of-pocket costs—will now be eligible to contribute to HSAs. This change expands the ability of people to access tax benefits that were previously unavailable to them. Notably, these plans do not need to be purchased through an official insurance marketplace to qualify, broadening the horizons for many beneficiaries.
As of January 1, 2026, annual contribution limits will remain at $4,300 for individuals and $8,550 for families. This represents a substantial shift in policy aimed at giving more people the opportunity to manage their health-related finances.
Telemedicine and Direct Primary Care Enhancements
The OBB also seeks to enhance access to telemedicine and Direct Primary Care (DPC) services. Telemedicine, which gained prominence during the COVID-19 pandemic, will now be a permanent option for patients, allowing them to utilize these services without affecting their eligibility to contribute to HSAs. Patients will be able to engage in remote consultations before reaching their health plan deductible.
Moreover, individuals enrolled in DPC arrangements will be able to use their HSA funds to cover associated fees tax-free. These DPC models emphasize a more personalized approach to healthcare, where patients pay a monthly fee for a range of services directly from their healthcare provider.
It is important to note that HSAs will remain portable; the account belongs to the individual. This means that users retain their funds even if they change jobs, allowing for continued access to tax-free savings for medical, dental, or prescription expenses.
The intention behind these changes is to remove bureaucratic barriers that have historically restricted access to health savings options, particularly for lower-income individuals or those with economical insurance plans. By broadening the scope of who can benefit from HSAs, the administration aims to empower citizens to take greater control over their healthcare finances.
As these changes roll out, individuals can look forward to increased opportunities for saving and managing healthcare expenditures in a more flexible manner.
“The new regulations expand the ability of people enrolled in these plans to contribute to HSAs, which they generally have not been able to do in the past,” stated a spokesperson from the IRS.
For many, the upcoming changes represent a significant step towards a more inclusive healthcare savings framework, providing enhanced access to essential health services and promoting personal responsibility in managing healthcare costs.
