Health savings accounts – already one of the most tax-advantaged ways to combat the risings cost of medical care – are now even more favorable. On July 4, 2025, President Donald Trump signed the One Big Beautiful Bill Act (“OBBB”) into law. The wide-ranging tax and spending package includes several provisions that impact employee benefit plans. Two of them are favorable to utilizers of HSAs and for employment benefit packages that incorporate HSAs as an element.
Extension of First-Dollar Telehealth Benefits
As temporary relief during the COVID-19 pandemic, health plans were allowed to provide low or no-cost telehealth benefits prior to satisfaction of the deductible for those enrolled in a qualified HDHP without jeopardizing employees’ tax-exempt HSA contributions. This relief expired for plan years beginning in 2025. The OBBB makes this relief permanent and retroactive for plan years beginning in 2025.
Eligibility of Direct Primary Care Services
The OBBB makes expenses related to direct primary care arrangement HSA-eligible. Direct primary care services include a monthly fee that covers office visits and some other related costs prior to the satisfaction of the HDHP deductible. The monthly fees are now HSA-qualified expenses if they do not exceed $150 for individual coverage or $300 for family. That amount will be indexed annually for inflation. This provision will be effective for services paid starting in 2026.
How We Can Help
PS Administrators excels in managing consumer-driven health plans and ensuring they align with IRS regulations. Our expertise helps clarify the complex rules surrounding medical expenses, allowing you to make informed decisions about your health spending. Contact us to safeguard your health investments and maintain the integrity of your health spending plan.
