One Big Beautiful Bill Act
Congress Passes “One Big Beautiful Bill Act”
After much debate, Congress has passed the “One Big Beautiful Bill Act” (“OBBBA”), which incorporates changes to tax, health, and employee benefits laws.
HSA Expansion for Telehealth
The OBBBA included permanent expansion for pre-deductible telehealth services for those with a high-deductible health plan. Previously, coverage for telehealth services could not be covered prior to the individual satisfying the deductible if they were covered by an HSA-qualified high-deductible health plan. The expansion is effective for plan years beginning after December 31, 2024.
Direct Primary Care
Under the OBBBA, Direct Primary Care (DPC) arrangements will not be disqualifying coverage for HSAs, meaning as of 2026, those enrolled in a DPC arrangement will be able to contribute to an HSA, which was previously prohibited.
Coverage under Bronze or Catastrophic Plans
The OBBBA has expanded HSA eligibility to include bronze or catastrophic plans offered through the individual market exchange. This change is also effective January 1, 2026.
Dependent Care FSA
The Act also included an increase to the contribution amount for dependent care Flexible Spending Accounts (FSAs). Previously, participants could only contribute up to $5,000, a limit that has remained untouched (with the exception of the limited increase during the COVID-19 pandemic) since 1986. For tax years beginning after December 31, 2025, the contribution limit will be $7,500.
To learn more about the OBBBA and other compliance changes, join our webinar here!
