---
title: "What employers need to know about expanded HSA eligibility under the OBBBA"
date: 2025-07-29
author: "siteadmn"
featured_image: "https://contempohcm.com/wp-content/uploads/2025/03/2025-0325-Contempo-2025-adjusted-penalty-amounts-for-health-and-welfare-plans.jpg"
categories:
  - name: "General Business"
    url: "/category/general-business.md"
tags:
  - name: "HSA"
    url: "/tag/hsa.md"
  - name: "insurance"
    url: "/tag/insurance.md"
  - name: "OBBBA"
    url: "/tag/obbba.md"
---

# What employers need to know about expanded HSA eligibility under the OBBBA

If your organization offers Health Savings Accounts (HSAs), or is evaluating high-deductible health plans (HDHPs) paired with HSAs for your 2026 benefits package, a major legislative change could expand participation. The recently enacted **One Big Beautiful Bill Act (OBBBA)** introduces broader HSA eligibility rules starting in 2026, making these accounts accessible to more employees than ever before.

## Why HSAs Remain a Smart Benefits Strategy

HSAs offer triple tax advantages: contributions are tax-deductible, earnings grow tax-free, and withdrawals for qualified medical expenses are also tax-free. Employees own their accounts, and unused balances roll over year to year, even into retirement.

From an employer perspective, HSAs support long-term cost control. HDHPs typically cost less than traditional group health plans, and HSAs promote more thoughtful health spending. Employers can also position HSAs as long-term savings and investment tools for employees, further enhancing their benefits offerings.

However, HSA eligibility has historically come with restrictions. Employees needed to be enrolled in a qualified HDHP and avoid disqualifying coverage like a spouse’s traditional plan or Medicare.

## Key HSA Eligibility Changes Coming in 2026

The OBBBA addresses long-standing limitations that kept many would-be HSA participants on the sidelines:

- **Marketplace Plan Inclusion**: Starting in 2026, employees covered by **Bronze or Catastrophic plans** purchased through the Affordable Care Act (ACA) exchanges will become eligible to contribute to HSAs.
- **Direct Primary Care Compatibility**: Individuals enrolled in **direct primary care arrangements** will now qualify for HSA contributions, provided they also have an HDHP and no other disqualifying coverage. The monthly fee must be \\$150 or less (or \\$300 for family coverage), adjusted annually for inflation.
- **Permanent Telehealth Exemption**: The **telehealth exception**, originally created during the COVID-19 pandemic, will return permanently in 2026. HDHPs can cover telehealth services before deductibles are met without disqualifying participants from HSA contributions.

These updates remove confusion and expand access, especially for part-time workers, gig economy participants, and employees in rural or underserved areas who often rely on alternative or nontraditional health care plans.

## What Employers Should Do Now

With these changes on the horizon, employers should begin planning:

- **If you already offer an HDHP with HSA**: Review your plan documents and employee eligibility rules. Consider how these changes may expand your pool of eligible participants.
- **If you haven’t yet implemented HSAs**: Reevaluate whether an HDHP+HSA model could now meet your workforce’s needs and support your benefits strategy.

The OBBBA simplifies HSA eligibility and opens the door for more employees to take advantage of this valuable benefit. Reach out to discuss how your organization can adjust or expand its offerings in response to the new rules.

©2026