4 Ways the OBBBA Will Transform Employee Benefits Starting in 2026

The One Big Beautiful Bill Act (OBBBA) is making headlines for its impact on overtime pay and tax relief. But for HR leaders, the bigger story is how it reshapes the employee benefits landscape. With open enrollment approaching, new rules for HSAs, dependent care FSAs, and direct primary care arrangements mean big changes for how employees choose benefits and how organizations plan budgets.

Overlooking these updates could cause confusion and unexpected costs. Proactive planning ensures employees make informed choices while employers maintain financial stability.

1. Telehealth Relief for HSAs and HDHPs

OBBBA allows telehealth services to be covered by high-deductible health plans (HDHPs) without affecting employee eligibility to contribute to HSAs, retroactive to January 1, 2025. Previously, employees had to meet deductibles before telehealth was considered HSA-eligible. Now, telehealth can be covered from the first dollar, strengthening care options without disqualifying HSA participation.

HR actions:

  • Update plan documents and enrollment guides to include telehealth coverage.
  • Train benefits counselors to answer open enrollment questions on HSA eligibility.
  • Communicate retroactive eligibility so employees apply it to past visits.

Takeaway: Employees gain full HSA access for telehealth, potentially saving money while improving care access.

2. Direct Primary Care Arrangement Fees and HSAs

Starting January 1, 2026, fees paid for direct primary care (DPC) arrangements can be treated as HSA-eligible medical expenses. This removes previous uncertainty around whether fixed recurring fees for primary care could qualify, offering employees more flexibility and predictable healthcare costs.

HR actions:

  • Update plan communications to reflect DPC eligibility for HSAs.
  • Train counselors to explain reporting requirements for HSA purposes.
  • Ensure employees understand which services qualify (e.g., not lab work or prescriptions).

Takeaway: DPC fees are now HSA-eligible, giving employees more options to manage care and costs.

3. Increased Dependent Care FSA Limits

The OBBBA raises the maximum contribution to dependent care FSAs from $5,000 to $7,500 per year ($3,750 for married employees filing separately), effective January 1, 2026. Families can now set aside more pre-tax dollars for childcare and dependent care costs.

HR actions:

  • Update plan documents and enrollment guides with new contribution limits.
  • Train benefits counselors to explain compliance with nondiscrimination requirements.
  • Communicate updates early during open enrollment to help employees adjust contributions.

Takeaway: Employees can increase dependent care savings, helping families offset rising childcare expenses.

4. Trump Accounts – Tax-Advantaged Investment for Children

Effective July 4, 2026, OBBBA introduces Trump Accounts, investment accounts for children under 18. Individuals can contribute up to $5,000 annually, with employers adding up to $2,500 (counted toward the $5,000 total). Contributions are excluded from taxable income, and accounts grow tax-deferred until the child turns 18.

HR actions:

  • Assess if offering Trump Accounts fits your total rewards strategy.
  • Evaluate potential employer contributions and communication strategies.
  • Monitor forthcoming administrative guidance before rollout.

Takeaway: Trump Accounts give families a new, tax-advantaged savings option for children’s future needs.

Preparing for 2026 Benefits Changes

The OBBBA gives employees more ways to maximize their benefits—from telehealth access and direct primary care flexibility to expanded dependent care FSAs and tax-advantaged Trump Accounts.

HR teams that plan ahead, update enrollment materials, and communicate clearly can ensure these changes deliver real value while keeping benefits administration smooth and predictable.

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