IRS Gives Guidance on New Tax Benefits

The Treasury Department and the IRS are offering guidance on OBBBA expanded Health Savings Account eligibility that allows more people to save and pay for healthcare costs.

Here are the details of the expanded HSA access:

• Telehealth and Remote Care Services—The OBBBA made permanent the ability to receive telehealth and other remote care services before meeting the high-deductible health plan deductible while remaining eligible to contribute to an HSA, effective for plan years on or after Jan. 1, 2025.
• Bronze and Catastrophic Plans—As of Jan. 1, 2026, bronze and catastrophic plans available through an Exchange are considered HSA-compatible, regardless of whether the plans satisfy the general definition of an HDHP.
  • This expands the ability of people enrolled in these plans to contribute to HSAs, which they generally haven’t been able to do in the past.
  • Notice 2026-05 clarifies that bronze and catastrophic plans don’t have to be purchased through an Exchange to qualify for the new relief.
• Direct Primary Care Service Arrangements—An otherwise eligible individual enrolled in certain direct primary care service arrangements may contribute to an HSA. HSA funds may be used tax free to pay periodic DPC fees.

According to HSA solutions provider Deviner, “Supported by favorable markets, HSA assets expanded meaningfully in the first half of 2025. By midyear, assets reached nearly $159 billion across about 40 million accounts, up 16% year-over-year for assets and 6% for accounts.”

Of course, this is just a brief overview of a very complex topic. Be sure to discuss HSA issues with qualified financial experts.