Last reviewed June 2026

What did the One Big Beautiful Bill change for health benefits?

Short answer: The One Big Beautiful Bill Act (signed July 2025) made several 2026 changes: it expanded HSA eligibility (individual-market bronze/catastrophic plans, direct primary care, permanent telehealth), raised the dependent-care FSA limit to $7,500, and enhanced the dependent-care tax credit to a 50% top rate.

The One Big Beautiful Bill Act (OBBBA, Pub. L. 119-21) included several employee-benefits provisions, most effective in 2026:

  • HSA eligibility expanded: all individual-market bronze and catastrophic plans are treated as HSA-eligible; qualifying direct primary care arrangements (monthly fee up to $150/$300) no longer disqualify HSA contributions and are HSA-payable; and the telehealth pre-deductible safe harbor is now permanent.
  • Dependent-care FSA limit raised to $7,500 ($3,750 if married filing separately), the first increase since 1986.
  • Dependent-care tax credit enhanced to a 50% top rate (from 35%), phasing down by income.

Notably, OBBBA did not let working seniors enrolled in Medicare Part A keep contributing to an HSA, so Medicare enrollment still ends HSA contributions.

Sources

Topic: HSAs