The recent enactment of the “One Big Beautiful Bill” (OBBB) by Donald Trump in July 2025 brought about significant changes to various tax regulations, particularly those related to health savings accounts (HSAs). HSAs offer a triple tax benefit: contributions reduce taxable income, invested funds can grow tax-free, and withdrawals are untaxed when used for qualified medical expenses. Thanks to the adjustments made in the OBBB, a larger number of Americans now have the opportunity to leverage this advantageous account type.
Eligibility for an HSA traditionally required enrollment in a high-deductible health plan (HDHP), distinguished by higher deductibles and lower premiums compared to PPO plans. As of January 1 this year, individuals enrolled in high-deductible Bronze and Catastrophic plans through the ACA marketplace can also contribute to an HSA. Notably, Medicare enrollees are ineligible for an HSA.
Another group that benefitted from the OBBB changes are users of direct primary care, a subscription-based model for primary healthcare services. Previously, having a direct primary care membership precluded individuals from having an HSA. However, under the new rules, one can maintain both, provided the monthly direct primary care fee does not exceed $150 for individuals or $300 for families. Moreover, HSA funds can now be utilized to cover the direct primary care subscription.
When it comes to HSA contributions, individuals with self-only coverage can contribute up to $4,400 in 2026, while those with family coverage can contribute up to $8,750. Individuals aged 55 and above can make an additional catch-up contribution of $1,000. Even if maximum contributions are unattainable, any amount saved in an HSA presents a valuable opportunity to capitalize on a unique tax benefit unparalleled by other accounts. Don’t miss out on this trifecta of tax advantages!
