The “Big Beautiful Bill” has been signed into law, marking the largest expansion of Health Savings Accounts (HSAs) in over 20 years, along with other key updates to consumer-directed healthcare and flexible benefit programs.

Key provisions include:

• HSA eligibility expands in 2026: Individuals on Bronze and Catastrophic ACA plans will be able to open and contribute to HSAs, potentially extending access to millions. Employers with ICHRA offerings should update employee communications accordingly.
• Direct Primary Care (DPC) now HSA-eligible: Starting January 1, 2026, DPC membership fees will qualify as HSA expenses, and participation will no longer disqualify HSA contributions.
• Permanent telehealth safe harbor: HSA-compatible plans can now permanently cover telehealth services pre-deductible, aligning plan documents and communications with this lasting change.
• Dependent Care FSA (DCFSA) limit increase: In 2026, annual DCFSA limits rise to $7,500 (single/married joint) or $3,750 (married separate), the first increase in nearly 40 years. Employers must amend plans and update payroll systems to reflect the new limits.

These updates will impact benefit strategies and employee education. If you’d like to discuss how they affect your organization ahead of 2026, our team is here to assist.