More Americans Can Contribute to an HSA Under the OBBB -- Are You Eligible?

President Donald Trump's 2025 tax bill, the "big, beautiful bill" (OBBB), changed many aspects of the U.S. tax code. Among those changes was an expansion of eligibility and features of Health Savings Accounts (HSAs).

HSAs are tax-advantaged savings accounts for covering healthcare costs that offer multiple benefits. You can contribute to an HSA tax-free and pay for qualified medical expenses from your HSA without paying taxes.

Your savings in the HSA can be invested and grow tax-free until retirement. Unlike with Flexible Spending Accounts (FSAs), funds in an HSA don't lapse at year-end and remain available year after year.

However, until the OBBB changed its rule, you had to be enrolled in a high-deductible health plan to qualify for an account. Such health plans have a deductible of at least $1,700 for an individual or $3,400 for a family for 2026. So-called Bronze plans, which can be purchased on the Affordable Care Act (ACA) Marketplace, did not qualify for HSAs, nor did catastrophic plans, which feature low monthly premiums but high deductibles.

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Now, after the OBBB changes, both Bronze and catastrophic plans qualify for HSAs. Bronze plans are highly popular, accounting for about 30% of all Marketplace plans selected in the 2025 open-enrollment period. As of Jan. 1, 2026, all those plans are considered to be HSA-compatible, in addition to about 54,000 catastrophic plans.

New eligibility rules could add as many as 3 million new HSA accounts

In addition, because of OBBB changes, individuals enrolled in certain direct primary-care service arrangements can now contribute to an HSA.

The OBBB also changed eligibility requirements for catastrophic plans, allowing individuals over 30 to enroll in some instances (such plans had been restricted to people under 30). The White House estimates that this change will add some 3 million people to the rolls of those eligible to use an HSA, bringing the total of additional HSA-eligible plans to 10 million.

That's very good news for many Americans, as HSAs are a great way to save and invest money that can be used for all sorts of medical expenses. Here are a few examples:

• Medications, both over-the-counter and prescription
• Dental costs
• Ambulance services
• Contact lenses
• Diagnostic services
• Eyeglasses
• Operations
• Psychiatric care
• Weight-loss programs

Check your health plan to see if you're eligible under the new guidelines. HSAs are a great way to save money for immediate expenses while saving and investing for larger health expenses you might incur later in retirement.

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