Making Sense of the OBBBA Act: What Employers Need to Do Now

The One Big Beautiful Bill Act (OBBBA) is here — and it’s rewriting the rules for Health Savings Accounts (HSAs).

The good news: it expands access and flexibility.
The bad news: it also creates a wave of compliance complexity and employee confusion.

Here’s what employers need to know — and how to turn OBBBA into a strategic advantage instead of a headache.

What Changed Under OBBBA

The Act introduces three major updates:

1. Permanent First-Dollar Telehealth Coverage

High-deductible health plans (HDHPs) can now cover telehealth services before the deductible without losing HSA eligibility.

• Why it matters: Employees gain faster access to care. Employers may see reduced in-person visits and improved productivity. But plan documents must be updated and communication made crystal clear.

2. HSA Eligibility for ACA Bronze & Catastrophic Plans

Starting January 1, 2026, these plans will officially qualify as HSA-compatible HDHPs.

• Why it matters: More employees — including part-time workers and gig economy staff — will be eligible. But most won’t realize it without targeted guidance.

3. Direct Primary Care (DPC) Is Now HSA-Compatible

Monthly fees of up to $150 (individual) or $300 (family) are now eligible HSA expenses.

• Why it matters: Employees can use HSA dollars for more personalized care. But boundaries are strict (e.g., anesthesia and prescriptions excluded), and misuse risk is high.

The Real Challenge: Misunderstanding

The biggest OBBBA hurdle isn’t the new rules themselves — it’s what employees think the rules are.

Common misconceptions we’ve already seen:

• Medicare enrollees can now contribute to HSAs (false).
• Spouses can contribute catch-up funds to the same HSA (still not allowed).
• Gym memberships are automatically eligible (only with medical necessity).
• DPC covers “everything” (not true).

These misunderstandings create:

• ❌ Misuse of funds
• ❌ Compliance violations
• ❌ Missed tax advantages
• ❌ More HR headaches

The Employer Stakes

Employers who don’t address OBBBA properly risk:

• Payroll tax savings left on the table.
• Noncompliance penalties.
• Burned-out HR teams managing confusion.
• Loss of employee trust when benefits don’t work as expected.

How Budgie Makes OBBBA Work

Budgie Health takes the complexity out of OBBBA with:

• Compliance alignment: plan documents and communications updated correctly.
• Targeted outreach: identifies newly eligible employees (e.g., ACA plan enrollees).
• Smart education: explains new rules in plain language, not legalese.
• Real-time guidance: flags at-risk HSA usage before it becomes a compliance issue.
• ROI modeling: quantifies how broader adoption impacts costs and payroll taxes.

Instead of scrambling, employers can use OBBBA as an opportunity to expand benefits access and capture more savings.

The Takeaway

The OBBBA Act isn’t optional. Every employer offering HDHPs or HSAs will feel its impact. But with the right support, compliance can turn into competitive advantage.

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