The Health Savings Accounts (HSAs) experienced significant growth due to 'One Big Beautiful Bill'

The Health Savings Accounts (HSAs) experienced significant growth due to 'One Big Beautiful Bill'

The One Big Beautiful Bill, signed into law in July, marks a significant step towards expanding health savings accounts (HSAs) and improving telehealth services. Here's a breakdown of the key provisions that will impact millions of Americans:

1. The telehealth safe harbor, which was a COVID-19-era policy, has been made permanent and retroactive for plan years beginning after Dec. 31, 2024. This means high-deductible health plans (HDHPs) can now provide coverage for telehealth services prior to the deductible being met without affecting HSA eligibility.
2. The telehealth safe harbor now applies to plan years beginning after Dec. 31, 2024, closing any gap from the period the safe harbor expired. This permanent telehealth safe harbor permits HDHPs to cover telehealth services without affecting HSA eligibility.
3. The One Big Beautiful Bill also includes a provision for direct primary care arrangements. As of Jan. 1, 2026, these arrangements are not disqualifying coverage for determining HSA eligibility. However, direct primary care arrangements may not include procedures that require general anesthesia, prescription drugs other than vaccines, and laboratory tests not typically administered in ambulatory primary care. The direct primary care arrangement fee must not exceed $150 for an individual or $300 for a family and the amounts will be indexed for inflation.
4. All ACA-qualified bronze and catastrophic plans are now HSA-compatible HDHPs, effective Jan. 1, 2026. This means more than 7 million people who selected an ACA bronze-level plan for plan year 2025, and another 54,000 who selected a catastrophic plan, will be HSA-eligible in 2026, assuming they meet the other eligibility requirements.
5. The OBBB allows HSA funds to pay for direct primary care fees tax-free, beginning Jan. 1, 2026.
6. Access to predeductible telehealth and remote care services will not impact HSA eligibility going forward.
7. EBRI research found that an employer contribution to an HSA raises the average combined contribution to the account and increases the likelihood that an accountholder invests.
8. It's important to note that the organization that will have the ability to pay direct primary care billing from January 1, 2026, without affecting their HSA eligibility is not explicitly mentioned in the provided search results.
9. The OBBB brought back the expired telehealth safe harbor.
10. The OBBB includes three provisions boosting HSAs, including telehealth safe harbor, direct primary care, and bronze and catastrophic health plans.
11. Direct primary care arrangements are also included in the OBBB, but further details about this provision are not provided in the given paragraph.

These changes aim to increase access to affordable healthcare, expand telehealth services, and make HSAs more attractive for Americans. For more information, consult your healthcare provider or a financial advisor.

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