The President has signed the “One Big Beautiful Bill”. The health-related provisions are as follows:

The bill:

Did not take away the employer tax exclusion, a big win in maintaining the ability of employers to offer employee benefits.

Did not renew the enhanced premium tax credits, which means they will revert to the original Affordable Care Act (ACA) formula on January 1, 2026. This may result in some people who currently receive premium tax credits in the Individual market becoming ineligible during the upcoming open enrollment season.

Additionally, the bill requires verification of the following items prior to a beneficiary receiving a premium tax credit:

  • Household income and family size
  • Whether the individual is an eligible alien
  • Any health coverage status or eligibility for coverage
  • Place of residence

The bill did not increase the contribution limits for HSAs, but:

  • Permanently permits pre-deductible coverage of telehealth services for HSA-linked plans, a very big win for your clients; and
  • Permits use of HSA funds to reimburse up to $150 per month for Direct Primary Care arrangements ($300 per month for families). These arrangements would not be classified as health plans, preserving HSA eligibility for individuals who participate in them. This is also a very big opportunity for your clients that can save money while enhancing benefits for employees, a very big win for us.

 

Employee Benefit Advisors provides employee benefits, tax-advantaged healthcare, compliance guidance for ACA and Health & Welfare DOL Audits, and PEO Advisory & Consulting Services.