Beyond the One Big Beautiful Bill Act: What’s next for HSAs and employee benefits

The One Big Beautiful Bill Act continues to shape the employee benefits world. In a recent episode of the Benefits Buzz podcast, Chris Byrd, WEX health & benefits senior vice president, shared his insights on what has changed since the legislation passed. He discussed key health savings account (HSA) updates, other important employee benefits provisions, the growing interest in ICHRAs, and the trends employers should watch as they plan for the future. 

The big picture: Stability creates opportunity

According to Byrd, the most important development isn’t a dramatic policy change—it’s certainty.

Following the bill’s passage, regulators have released guidance that clarifies how employers can implement the law. That means organizations can now evaluate their benefit strategies with greater confidence and begin planning for upcoming enrollment seasons.

Rather than reacting to legislative uncertainty, employers can focus on optimizing their benefit offerings and employee experience.

Three HSA changes employers should know

HSAs remain one of the most valuable tools for managing healthcare costs and building long-term financial wellness. The legislation expands both access to HSAs and the ways employers can pair them with other benefits.

1. Permanent telemedicine safe harbor

Employers can now permanently offer first-dollar telehealth coverage without jeopardizing HSA eligibility.

Previously, many employers worried that covering telemedicine before the deductible could disqualify employees from contributing to an HSA. That concern is gone.

This gives employers more flexibility to encourage employees to use lower-cost virtual care while preserving the tax advantages of HSAs.

2. Direct primary care Is now HSA compatible

Employees enrolled in direct primary care (DPC) arrangements can maintain HSA eligibility.

This opens the door for employers interested in supplementing traditional health plans with DPC memberships as part of their benefits package.

3. More individual plans automatically qualify for HSAs

All Bronze and Catastrophic plans purchased in the individual market are now automatically HSA-eligible.

While this may not seem directly relevant to employer-sponsored plans, it significantly increases the value of individual coverage HRAs (ICHRAs), allowing employees purchasing individual coverage to pair lower-cost plans with an HSA.

Why ICHRAs are gaining momentum

One of the fastest-growing conversations in employee benefits centers on ICHRAs.

Instead of sponsoring a traditional group health plan, employers contribute a fixed amount of tax-advantaged dollars that employees use to purchase their own health insurance.

Why the growing interest?

Small employers continue to face rising healthcare premiums while often lacking dedicated HR or benefits staff. An ICHRA can simplify administration while helping employers continue offering meaningful health benefits.

For employers already providing group coverage, ICHRAs can also help expand benefits to employee populations that may not currently receive coverage, such as:

• Part-time employees
• Seasonal workers
• Other classes of employees that may be difficult to include in traditional group plans

The flexibility allows employers to maintain group coverage for full-time employees while extending benefits to additional segments of their workforce.

Dependent care FSAs get a long-overdue increase

The legislation also increases the dependent care flexible spending account contribution limit from $5,000 to $7,500.

While employers aren’t required to adopt the higher limit, many may choose to do so to better reflect today’s childcare costs.

One consideration remains: non-discrimination testing. Industry groups continue working with the IRS to simplify these rules so employers can more easily offer the higher contribution limit.

Understanding Trump Accounts

Another new benefit generating interest is the introduction of Trump Accounts.

Designed to encourage long-term investing for children, these accounts function similarly to retirement savings vehicles, allowing investments to grow tax-free over time.

For eligible newborns, the federal government provides a $1,000 seed contribution, but families with older children are also opening accounts without receiving the government funding.

At this stage, however, the market is still developing.

Financial institutions are beginning to offer Trump Accounts, and employers have the option to contribute on behalf of employees’ children or facilitate payroll deduction contributions. Operational processes (including account transfers and rollovers) are still evolving, making this an area worth monitoring rather than rushing into.

Another trend employers should watch: GLP-1 benefits

Beyond legislative changes, one of the biggest conversations in employee benefits today is how employers manage coverage for GLP-1 medications.

These medications have become increasingly popular but also present significant cost challenges.

Some employers are exploring alternative funding strategies, including carving GLP-1 medications out of traditional pharmacy benefits and instead reimbursing employees through HRAs.

This approach may allow employers to:

• Better manage benefit budgets
• Ensure coverage is directed toward employees with clinical need
• Take advantage of lower consumer pricing available through manufacturer programs or discount providers

As this market evolves, employers will continue looking for sustainable ways to balance employee access with affordability.

Technology will continue to transform benefits

Artificial intelligence is also changing how employees interact with their benefits.

Rather than simply digitizing enrollment, AI is beginning to help employees:

• Choose the health plan that best fits their needs
• Understand benefit options
• Receive personalized guidance throughout the year
• Make more informed financial decisions about accounts like HSAs

For employers, better decision support could lead to higher engagement, improved employee satisfaction, and better use of available benefits.

The most important advice: Communicate year-round

Perhaps the biggest takeaway wasn’t about legislation at all. Benefits communication shouldn’t begin and end during open enrollment.

By the time employees finish choosing health plans, many are overwhelmed and simply stop paying attention. That means valuable benefits (such as HSAs, voluntary benefits, or wellness programs) often receive far less consideration than they deserve.

Instead, employers should think about benefits communication as an ongoing conversation.

Successful organizations:

• Keep messaging simple and free of technical jargon.
• Explain benefits in practical, relatable terms.
• Reinforce key messages throughout the year.
• Use regular touchpoints instead of relying solely on open enrollment.

For example, employees can change HSA contribution amounts at any point during the year. Reminding them after receiving a bonus, tax refund, or life change may be far more effective than mentioning it during an already crowded enrollment period.

Looking ahead

The benefits landscape appears relatively stable heading into 2027, giving employers an opportunity to focus less on reacting to legislation and more on building thoughtful, employee-centered benefit strategies.

Whether that means expanding HSA offerings, evaluating ICHRAs, monitoring emerging benefit options like Trump Accounts, or investing in better employee communication, the organizations that succeed will likely be those that continually educate and engage their workforce.

In employee benefits, strategy matters, but communication is what ultimately drives participation and value.

Don’t forget to check out our podcast episode to learn more about the One Big Beautiful Bill Act.

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