When Donald Trump's "One Big Beautiful Bill" (OBBB) became law in July 2025, it changed many different tax rules, including those surrounding health savings accounts (HSAs).
HSAs provide a 3-in-1 tax advantage: (1) Contributions lower your taxable income for that given year; (2) invested money can grow in value, and (3) withdrawals are tax-free, as long as you use them for qualified medical expenses.
Due to changes included in the OBBB, millions more Americans can take advantage of this lucrative account type.
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Who is eligible to use an HSA?
Historically, to be eligible for an HSA, you had to be enrolled in a high-deductible health plan (HDHP). This type of plan differs from a preferred provider organization (PPO) plan because it typically comes with higher deductibles, which means you spend more out of pocket to meet your deductible but have lower premiums. To be defined as an HDHP, an account must have an annual deductible of at least $1,700 for self-only coverage and $3,400 for family coverage.
Beginning on Jan. 1 of this year, people enrolled in the high-deductibe Bronze and Catastrophic plans purchased through the Affordable Care Act (ACA) marketplace are eligible to contribute to an HSA. It's also worth noting that you are not eligible for an HSA if you're enrolled in Medicare.
Direct primary care users also received a win
You can think of direct primary care as a subscription to your doctor. You pay a flat monthly rate and have access to certain primary care services like routine checkups, consultations, basic lab work, and some procedures.
Before the OBBB, having a direct primary care membership meant you couldn't have an HSA. You can now have both direct primary care and an HSA, as long as your monthly direct primary care fee is under $150 (individual) or $300 (family). And as a bonus, you can use HSA funds to pay for the monthly direct primary care fee.
How much can you contribute to an HSA?
In 2026, people with self-only coverage can contribute $4,400 to an HSA, those with family coverage can contribute $8,750, and people aged 55 and older can add an additional $1,000 catch-up contribution. Even if you can't contribute the maximum amount, any amount saved is a way to take advantage of a unique tax break that you won't find with any other account. It's a trifecta you don't want to miss.
