More Americans Can Contribute to an HSA Under the OBBB -- Are You Eligible?

Core Insights - The "big, beautiful bill" (OBBB) introduced by President Donald Trump in 2025 significantly altered the U.S. tax code, particularly expanding the eligibility and features of Health Savings Accounts (HSAs) [1] Group 1: Changes to Health Savings Accounts (HSAs) - HSAs are tax-advantaged accounts for healthcare costs, allowing tax-free contributions and withdrawals for qualified medical expenses [1][2] - Funds in HSAs can be invested and grow tax-free until retirement, with no expiration of funds at year-end, unlike Flexible Spending Accounts (FSAs) [2] Group 2: New Eligibility Rules - Prior to the OBBB, only individuals enrolled in high-deductible health plans (with deductibles of at least $1,700 for individuals or $3,400 for families in 2026) could qualify for HSAs [3] - The OBBB now allows both Bronze and catastrophic plans to qualify for HSAs, with Bronze plans making up about 30% of all Marketplace plans selected during the 2025 open-enrollment period [4] - The changes could potentially add up to 3 million new HSA accounts, with an estimated total of 10 million additional HSA-eligible plans [6][5] Group 3: Benefits of HSAs - HSAs provide a beneficial way for Americans to save and invest for various medical expenses, including medications, dental costs, ambulance services, and more [7][10] - The new guidelines encourage individuals to check their health plans for eligibility, promoting HSAs as a means to manage both immediate and future healthcare expenses [9]