Health Savings Accounts (HSAs) Gain Greater Accessibility
More people than ever are expected to benefit from ways to save money next year, as many financial advisors indicate. The recent provisions in the Tax and Expense Act, signed by President Donald Trump, will expand access to triple-tax-protected health savings accounts (HSAs). This expansion is anticipated to open up HSAs to a significant number of Americans. It allows for the incorporation of more affordable healthcare insurance plans, direct primary care setups, and telehealth coverage.
Financial experts regard HSAs as a popular savings tool, particularly because the contributions, growth, and withdrawals for qualified expenses come with tax advantages. “The combination of pre-tax contributions and tax-free withdrawals for eligible medical expenses might lead to substantial savings for families, especially if they remain healthy,” a financial advisor notes. This could understandably position HSAs as a sort of piggy bank for medical expenses, similar to individual retirement accounts.
HSA Eligibility Under ACA Plans
Starting in 2026, bronze and catastrophic plans will qualify for HSAs. However, many bronze plans do not actually qualify as they typically cover non-preventive services, which creates complications for meeting deductibles. The same goes for catastrophic plans, which often exceed allowable out-of-pocket limits. According to estimates, around 30% of bronze plans chosen by ACA subscribers in 2025 may not cover essential services before the deductible is met, as stated by the Centers for Medicare and Medicaid Services.
New Plans Eligible for HSA Funding
Next year, individuals in direct primary care arrangements—defined as those where costs reach up to $150 for individuals or $300 for families—will also be able to fund HSAs. In these setups, patients pay a fixed fee directly to their primary care provider for a certain set of services, as opposed to the per-service fees typically associated with traditional insurance. Interestingly, the fees involved in DPC are recognized as eligible medical expenses under HSA rules.
For telehealth services, however, which do not require meeting deductibles, coverage through high-deductible health plans (HDHPs) has been disqualified retroactively to plans effective as of January 1, 2022. According to data from the National Center for Health Statistics, about 30% of U.S. adults utilized telemedicine over the past year.
Significance of HSA Access
HSAs offer the unique advantage of being triple tax-advantaged. Contributions—whether made pre-tax through payroll or tax-deductible—reduce the federal taxable income. This could lower not only tax obligations but also potentially enhance eligibility for deductions, credits, or benefits programs. HSA investment growth occurs tax-free, and withdrawals for eligible medical expenses are also tax-free.
Additional benefits include that HSAs do not have a “use it or lose it” policy—unlike flexible spending accounts, funds carry over year after year. There’s also an opportunity for investment growth, which could significantly aid in covering future healthcare costs, especially for retirement. After reaching age 65, funds can be withdrawn for any reason without penalty, although non-medical withdrawals might incur income tax.
Employers may also consider making contributions to HSAs. Many are inclined to participate in higher-priced insurance programs but prefer to save on premiums. To attract employees, some may offer tax-free contributions to HSAs as an incentive.
