BBB Expands HSAs Across Health Plans, Here's How To Prep Your Savings For 2026
The One Big Beautiful Bill Act has expanded access and flexibility to health savings accounts (HSAs) , which can help account holders prepare for medical emergencies and reduce taxable income. HSAs allow for tax-free growth towards medical expenses, and can turn into an investment account at retirement. The changes go into effect January 1, 2026, with a few exceptions.
Currently, four requirements must be satisfied to be eligible for an HSA: Applicants must be enrolled in a qualified high-deductible health plan, You can't have other disqualifying health coverage, You can't be enrolled in Medicare, and You can't be claimed as a dependent on someone else's current-year tax return.
Eligibility will expand starting in 2026, with enrollees in high-deductible bronze and catastrophic plans on the ACA Marketplace able to contribute to an HSA. The bill also allows individuals to maintain HSA eligibility if they have a direct primary care (DPC) membership up to $150 per month for individuals, or $300 per month for families.
The upcoming changes also expand HSAs to allow telehealth services without individuals first meeting their deductible. This removes a key barrier to care and increases access to virtual visits, mental health support, prescription management, and more. The amendment applies retroactively to December 31, 2024, when the previous temporary provision expired.
A health savings account is a tax-advantaged savings account for medical expenses, available to those who are covered by a high-deductible health plan. HSAs allow users to save money tax-free to pay for qualifying medical expenses, such as doctor visits, prescription medications and sometimes even dental or vision care.
For 2025, individuals can contribute $4,300 to an HSA, and $8,550 for family coverage. The limits bump up to $4,400 and $8,750, respectively, in 2026. Employer contributions count toward these limits.
HSAs are a smart financial tool because: Their contributions are tax-deductible: Contributions to an HSA are made with pre-tax dollars and reduce your taxable income for the year, ultimately leading to a lower tax bill.
Contributions to an HSA are made with pre-tax dollars and reduce your taxable income for the year, ultimately leading to a lower tax bill. They offer tax-free growth: Money in an HSA, whether it comes from an employer or from individual contributions, grows tax-free, meaning you don't pay taxes on the interest or investment gains.
Money in an HSA, whether it comes from an employer or from individual contributions, grows tax-free, meaning you don't pay taxes on the interest or investment gains. You don't pay tax on qualified withdrawals: When HSA funds are used for qualifying medical expenses, withdrawals are not taxed. This includes a broad range of medical, dental and vision expenses.
HSAs also provide a slew of benefits, including: Tax advantages: The triple tax benefit (tax-deductible contributions, tax-free growth, and tax-free withdrawals for medical expenses) makes HSAs a powerful tool that enrollees can wield to pay medical expenses, grow their funds for retirement (including interest and capital gains if invested), and use to lower their tax bills. Extra retirement funds: Since you can invest the funds and carry them over indefinitely, an HSA can grow significantly over time. Plus, once you turn 65, you can use the money for nonmedical expenses without any penalties. This is especially beneficial for individuals planning for future healthcare and financial needs in retirement.
Planning now for open enrollment, which begins November 1, is one of the best ways to take advantage of the new HSA rules taking effect in 2026. If you're shopping for health coverage on the ACA Marketplace, consider enrolling in a bronze or catastrophic plan to make the most out of the HSA benefits, including lowering your taxable income and starting another nest egg for retirement.
To find the right ACA plan, visit HealthCare.gov . Use the filtering tools to compare monthly premiums, deductibles, out-of-pocket maximums and provider networks to find one that fits your needs. Be sure to look for plans labeled 'HSA-eligible' to get the most out of the new eligibility expansion.
Read More: Best Affordable Health Insurance Plans of 2025
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27 minutes ago
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Miami Herald
an hour ago
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Politico
3 hours ago
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