January 13, 2026
IRS Provides Guidance on the OBBBA’s Expansion of HSAs
A primary update includes the permanent extension of a policy allowing patients to use Telehealth services before meeting their insurance deductibles without losing HSA eligibility. The new regulations also permit individuals to use tax-free HSA funds to pay for Direct Primary Care (DPC) subscription fees, provided the monthly costs remain under specific price caps. Furthermore, the legislation reclassifies all bronze and catastrophic plans sold on the ACA Exchange as HSA-compatible, regardless of their specific structure. These legal shifts, summarized in IRS Notice 2026-5, grant employers greater flexibility in designing health benefits and offer consumers more ways to save for medical expenses.
