Signed into law by President Trump on July 4th, H.R. 1 (commonly referred to as the “One Big Beautiful Bill Act” or the OBBB Act) introduces several updates aimed at expanding access and flexibility for Health Savings Accounts (HSAs). The law includes changes affecting who can contribute to an HSA, as well as new ways HSA funds can be used to support healthcare needs.
Breakdown of the HSA Provisions of H.R. 1
- Effective December 31, 2025, the law expands HSA eligibility for individuals who purchase an individual bronze or catastrophic health insurance plan through an Affordable Care Act Exchange.
- Effective December 31, 2025, individuals with an HSA may deduct direct primary care fees from their HSA as a qualified medical expense. The maximum monthly amount that can be deducted is $150 for individual coverage and $300 for an individual plus dependent(s).
- With a retroactive effective date of December 31, 2024, the law includes a provision allowing telehealth services to be covered on a pre-deductible basis for individuals enrolled in a high-deductible health plan with an HSA.
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