Big Changes for HSAs: What the New 2025 Law Means for You

Part 1 of 4: Understanding the One Big Beautiful Bill

For years, Health Savings Accounts (HSAs) have been a powerful tool for managing healthcare costs, offering major tax advantages and long-term savings potential. But the landscape is officially changing.

A new piece of legislation called the One Big Beautiful Bill was signed into law on July 4, 2025. It introduces some of the most significant updates to HSAs in recent history. These changes are designed to make HSAs more flexible, more accessible, and more aligned with how people receive care today.

Whether you're an employee with an HSA, an employer offering one, or a benefits broker guiding clients, these are updates worth understanding. Below is a high-level look at what’s changing.

1. Permanent Access to Pre-Deductible Telehealth
One of the most popular temporary health provisions from the past few years is now permanent. The law allows HSA-compatible health plans to cover telehealth services at low or no cost before a member meets their deductible.

The takeaway: This change removes a major barrier. Individuals can now use convenient telehealth services without worrying that it will affect their ability to contribute to an HSA.

2. HSAs and Direct Primary Care (DPC) Can Finally Work Together
The new law formally recognizes the growing popularity of the Direct Primary Care (DPC) model. Beginning in 2026, individuals will be allowed to maintain a DPC membership and still contribute to an HSA. The legislation also confirms that DPC fees, up to a monthly limit, qualify as eligible medical expenses.

The takeaway: This is a major shift. It gives people more choice in how they receive primary care and allows them to pair the DPC model with the tax advantages of an HSA.

3. HSA Eligibility Is Expanding
To ensure broader access, the law expands the types of health plans that can be paired with an HSA. Starting in 2026, Bronze and Catastrophic plans from the individual marketplace will be considered HSA-qualified.

The takeaway: This update gives more individuals, including freelancers, gig workers, and those with individual coverage, the opportunity to save for healthcare with pre-tax dollars.

Why This Matters
These changes mark a meaningful step forward in modernizing employee benefits. For employees, the updates allow more freedom in how care is accessed and paid for. For employers and their benefits partners, the new rules create opportunities to design more flexible and competitive benefits offerings.

Understanding the basics is just the beginning. Over the next few weeks, we’ll explore each of these updates in more detail to help you plan, communicate, and move forward with confidence.

Coming Up Next Week
We’ll take a closer look at the new telehealth and Direct Primary Care rules, including how they work and what they mean for your benefits strategy.