The Trump administration released new details on Health Savings Accounts following the passage of the “Big Beautiful Bill.”
The new law expands the share of people who can start tax-free Health Savings Accounts, also known as HSAs, according to a Dec. 9 release from the Treasury Department and the IRS.
HSAs allow participants to set aside money for deductibles, copayments, and coinsurance while lowering taxable income, according to a webpage from HealthCare.gov.
There is a yearly limit to the amount one can put in an HSA, but no minimum amount to start making contributions.
The money also rolls over from year to year and can earn interest.
With the passage of the “Big Beautiful Bill,” the ability to “receive telehealth and other remote care services before meeting the high-deductible health plan” deductible while also “remaining eligible to contribute to an HSA” was made permanent, according to the Treasury Department and IRS.
Starting in the new year, “bronze and catastrophic plans available through an Exchange are considered HSA-compatible, regardless of whether the plans satisfy the general definition of an HDHP,” the release added.
IRS releases health savings account expansion details under Trump’s ‘big beautiful bill’ https://t.co/fEKqP6WcUp
— CNBC (@CNBC) December 11, 2025
In other words, although such health plans were once incompatible with HSAs, they will be compatible in the new year.
The health plans do not need to be purchased through the Affordable Care Act exchange in order to qualify, according to a report from CNBC.
While bronze plans “generally have the lowest monthly premiums,” they also come with “higher out-of-pocket costs when you need care,” according to HealthCare.gov.
Meanwhile, catastrophic plans “have lower monthly premiums but the highest out-of-pocket costs and cover at least 3 primary care visits per year before you finish paying the deductible.”
Such plans are meant for protecting from major accidents or illnesses.
“This expands the ability of people enrolled in these plans to contribute to HSAs, which they generally have not been able to do in the past,” the release said.
Also in the new year, an “otherwise eligible individual enrolled in certain direct primary care” service arrangements “may contribute to an HSA.”
Some 59 million Americans had an HSA as of 2024, according to a report from CNBC.
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