New IRS Guidance Expands Major Tax Benefits for HSA Participants Under the One, Big, Beautiful Bill

The IRS has officially released new rules that bring big tax benefits for Health Savings Account (HSA) participants, thanks to the One, Big, Beautiful Bill (OBBB). The latest IRS Notice 2026-05 outlines several updates that make HSA eligibility easier and more accessible for millions of Americans. These changes will help more people lower their taxable income, save on medical expenses, and take advantage of long-term tax-free healthcare savings.

For anyone trying to get the most out of their Health Savings Account, this update is a major win. The IRS guidance focuses on telehealth, marketplace plans, and direct primary care—all redesigned to expand HSA eligibility and give Americans more flexibility in choosing their healthcare options.

HSA Eligibility Expands Under the One, Big, Beautiful Bill

The One, Big, Beautiful Bill introduces several important changes that make it much easier for individuals to qualify for and use HSAs. Here are the major updates:

1. Telehealth Services Now Permanently Count Toward HSA Eligibility

Starting January 1, 2025, telehealth and remote healthcare services can be accessed before meeting your high-deductible health plan (HDHP) deductible—while still keeping your HSA eligibility.

This policy was temporarily allowed during the pandemic, but the OBBB makes it permanent.

This update is great news for Americans who rely on:

• Virtual doctor visits
• Mental health counseling
• Remote urgent care
• Digital chronic care programs

Since telehealth is often more affordable and convenient, expanding it under HSA eligibility means people can save money while still building tax-free health savings.

2. Bronze & Catastrophic Plans Will Qualify as HDHPs Starting 2026

Beginning January 1, 2026, all bronze plans and catastrophic plans offered through the Health Insurance Marketplace will automatically be treated as HSA-compatible.

This means millions of Americans who enroll in lower-cost marketplace plans will now have full HSA eligibility, even if the plan does not meet the traditional HDHP rules.

Even better—the IRS confirmed these plans do not need to be purchased through an Exchange. Private bronze and catastrophic plans count too.

This update opens the door for more families and individuals to:

• Lower taxable income
• Save money through tax-deductible HSA contributions
• Use HSA funds tax-free for qualified medical expenses
• Build long-term savings for future healthcare needs

This expansion of HSA eligibility is expected to be one of the most impactful parts of the One, Big, Beautiful Bill.

3. Direct Primary Care Now Works With HSAs (Starting 2026)

Starting January 1, 2026, people enrolled in approved Direct Primary Care (DPC) service arrangements can maintain full HSA eligibility and also use their Health Savings Accounts to pay DPC membership fees tax-free.

This means Americans choosing modern healthcare models like:

• Monthly membership-based clinics
• Concierge-style primary care
• Subscription health services

…can finally enjoy both convenience and HSA tax benefits at the same time.

With more Americans moving toward personalized healthcare, this update makes DPC far more affordable and accessible.

IRS Invites Public Comments on Notice 2026-05

The Treasury Department and IRS are accepting public comments on Notice 2026-05 until March 6, 2026. Individuals and organizations can send feedback through the Federal e-Rulemaking Portal using the identifier IRS-2025-0335.

Why This Matters for American Families

These updates to HSA eligibility offer several major advantages:

• More people qualify for HSAs
• Lower healthcare costs through tax-free savings
• Expanded use of telehealth
• More flexibility in choosing insurance plans
• Ability to use HSAs with modern care options like DPC
• Larger long-term tax-free savings potential

For anyone looking to save money on healthcare, reduce taxes, and build financial security, expanded HSA eligibility under the One, Big, Beautiful Bill could be a game changer.

Also Read: SAVE Program Shutdown: New Student Loan Repayment Plan Required for 7 Million Borrowers