President Donald Trump's 2025 tax legislation, known as the "big, beautiful bill" or OBBB, has altered the U.S. tax code, including significant modifications to Health Savings Accounts. The changes broaden who can use these accounts and what they offer.
Health Savings Accounts are tax-advantaged accounts designed for healthcare costs. Contributions are made tax-free, and funds can be withdrawn tax-free for qualified medical expenses. Money in an HSA can be invested and grows without taxes until retirement. Unlike Flexible Spending Accounts, HSA funds do not expire at year's end and remain available indefinitely.
Previously, enrollment in a high-deductible health plan was required to open an HSA. For 2026, such plans must have deductibles of at least $1,700 for individuals or $3,400 for families. Bronze plans available on the Affordable Care Act Marketplace, along with catastrophic plans, did not meet this requirement.
The OBBB now allows both Bronze and catastrophic plans to qualify for HSAs. Bronze plans are widely chosen, representing about 30% of Marketplace selections during the 2025 open-enrollment period. Starting January 1, 2026, these plans, plus approximately 54,000 catastrophic plans, will be HSA-compatible.
Individuals in certain direct primary-care service arrangements can also contribute to HSAs under the new rules. Additionally, eligibility for catastrophic plans has been expanded; individuals over 30 can now enroll in some cases, whereas these plans were previously restricted to those under 30.
The White House estimates these adjustments could add around 3 million people to the pool of HSA-eligible individuals, increasing the total number of additional eligible plans to 10 million.
HSAs can be used for various medical expenses, including medications, dental costs, ambulance services, contact lenses, diagnostic services, eyeglasses, operations, psychiatric care, and weight-loss programs.
Americans are advised to check their health plans to determine eligibility under the new guidelines. HSAs provide a method to save for immediate healthcare needs while investing for future expenses in retirement.