The One Big Beautiful Bill Act: What it means for HSAs, FSAs, and your benefits strategy

Congress passed and President Trump has signed into law the One Big Beautiful Bill Act – and it’s a game changer for health savings accounts (HSAs). In this episode, Chris Byrd, WEX Health & Benefits senior vice president, breaks down the most impactful provisions of the bill, including expanded health savings account (HSA) eligibility for ACA exchange plans, the inclusion of direct primary care and telemedicine, and also an increase in dependent care FSA contribution limits. We’ll explore what these changes mean for you and your employees—and what steps we recommend you take to prepare for 2026 and beyond. Check out our podcast episode with Chris Byrd below:

3 HSA provisions

Chris Byrd highlighted three changes included in the One Big Beautiful Bill Act:

1. HSA eligibility for Bronze and Catastrophic ACA exchange plans
   Starting in 2026, individuals enrolled in these high-deductible ACA plans—around 7.3 million people—can finally open and contribute to HSAs. This change empowers more Americans to save pre-tax for healthcare expenses.
   
2. Direct primary care (DPC) and HSAs can now coexist
   DPC arrangements are no longer considered a separate health plan that would otherwise disqualify an individual from HSA eligibility. That means employees can now use their HSA funds for fixed-fee DPC services (up to $150/month for individuals or $300/month for families), offering more flexibility and access to personalized care.
   
3. Permanent reinstatement of pre-deductible telehealth coverage
   The safe harbor for employers to offer telehealth coverage before meeting the deductible is now permanent and retroactive to the start of the year—making it easier for companies to support accessible, affordable care.
   

A boost for dependent care FSAs

It’s not just HSAs seeing improvements. The bill also raised the annual contribution limit for dependent care flexible spending accounts from $5,000 to $7,500, effective for plan years starting January 1, 2026. Aside from a temporary increase in the American Rescue Plan Act of 2021, the limit was set by Congress in 1986 and has remained constant since then. The increase will benefit working families by lowering their cost of childcare, although the amounts are not indexed for inflation going forward.

What employers should do now

Byrd recommends employers and benefits administrators should start preparing for these changes by:

• Updating plan documents to reflect new HSA eligibility rules, especially if offering ICHRAs.
• Educating employees on how bronze ACA plans will soon qualify for HSA contributions.
• Considering whether they would like to offer DPC membership to employees now that DPC is HSA-compatible.
• For plans offering pre-deductible coverage of telemedicine services, aligning plan documents and communications with the permanent safe harbor and its retroactive application.  Employers who stopped pre-deductible coverage may wish to consider reinstating it.
• Preparing open enrollment materials that reflect the increased DCFSA limits for the 2026 plan year.
  

Looking ahead

While not every proposed benefit made it into the final version—like pre-taxing ACA exchange premiums or reinstating bicycle commuting benefits—Byrd expressed optimism that this bill is a significant step toward greater flexibility in HSA plan design. Looking forward, he shared that advocacy efforts will now focus on expanding HSA access for working seniors and extending HSA qualification for bronze and catastrophic plans to the group market—important changes that could further improve healthcare affordability and access for millions more Americans.

Don’t forget to watch our podcast episode with Chris Byrd for additional insights!

The information in this blog post is for educational purposes only. It is not legal, tax or investment advice. For legal, tax or investment advice, you should consult your own legal counsel, tax and investment advisers. 

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