Are you eligible for an HSA? OBBB changes could open the door for more Americans

HSA eligibility 2026: US president Donald Trump’s 2025 tax legislation, known as the “big, beautiful bill” (OBBB), made sweeping changes to the US tax code, including a major expansion of who can qualify for a Health Savings Account (HSA), as per a report.

Trump’s 2025 Tax Bill Expands HSA Eligibility: What is an HSA and How Does it Work

HSAs are tax-advantaged savings accounts designed to help people pay for healthcare costs. Contributions are made tax-free, and withdrawals for qualified medical expenses are also tax-free, as per the Motley Fool report. Funds held in an HSA can be invested and grow tax-free over time, and unlike Flexible Spending Accounts (FSAs), unused HSA balances do not expire at the end of the year.

Previous HSA Eligibility Rules Before the OBBB

Before the OBBB changes, eligibility for an HSA was limited. Individuals had to be enrolled in a high-deductible health plan, defined for 2026 as having a deductible of at least $1,700 for individuals or $3,400 for families, as per the Motley Fool report. Bronze plans purchased through the Affordable Care Act (ACA) Marketplace did not qualify, nor did catastrophic plans, which typically have low monthly premiums but very high deductibles.


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Bronze and Catastrophic Plans Now Qualify for HSAs

That has now changed. Under the new rules introduced by the OBBB, both Bronze and catastrophic health plans qualify as HSA-compatible. Bronze plans are among the most popular options on the ACA Marketplace, accounting for about 30% of all plans selected during the 2025 open-enrollment period, as per the Motley Fool report. As of January 1, 2026, all of these plans are eligible for HSAs, along with roughly 54,000 catastrophic plans.

New Rules Allow Some Over-30s to Enroll in Catastrophic Plans

The law also expanded eligibility in other ways. Individuals enrolled in certain direct primary-care service arrangements are now allowed to contribute to an HSA. In addition, the OBBB modified rules for catastrophic plans, making it possible for some people over the age of 30 to enroll, as per the Motley Fool report. Previously, these plans had largely been limited to those under 30.

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Millions of Americans Could Gain HSA Access

According to White House estimates, the combined changes could make as many as 3 million additional people eligible to use an HSA. Overall, the number of newly HSA-eligible plans is expected to rise by about 10 million, as per the Motley Fool report.

What Expenses Can You Pay With an HSA

The expansion is significant because HSAs can be used to pay for a wide range of medical expenses. Eligible costs include prescription and over-the-counter medications, dental care, ambulance services, contact lenses, diagnostic services, eyeglasses, surgical procedures, psychiatric care, and weight-loss programs, as per the Motley Fool report.

FAQs

Can I invest money in an HSA?

Yes. Funds in an HSA can be invested and grow tax-free.



Do unused HSA funds expire at the end of the year?

No. Unlike FSAs, HSA funds roll over year after year.