Swiftly signed into law on July 4, 2025, by President Trump, the "One Big Beautiful Bill Act" (OBBB) has been enacted after passing through Congress. The extensive legislation includes provisions that affect employee benefits and various tax and budget-related items.
A significant aspect of the OBBB is the permanent reinstatement of the telehealth safe harbor initially introduced during the pandemic. This allows plan participants who have not met their High Deductible Health Plan (HDHP) deductible to access telehealth services at no cost without affecting their Health Savings Account (HSA) eligibility.
The law applies retroactively from January 1, 2025. Employers are advised to consider approvals from carriers and vendors if they wish to remove any cost-sharing measures implemented in 2025.
The OBBB also addresses Direct Primary Care (DPC) services for HSAs. For plan years starting after December 31, 2025, DPC arrangements may be offered without cost-sharing and will not impact HSA eligibility if monthly fees remain below $150 for individuals or $300 for families. Additionally, HSA funds can reimburse DPC-related fees.
Changes to Dependent Care Assistance Programs (DCAPs) include an increase in the maximum annual reimbursement limit from $5,000 to $7,500 ($3,750 for married couples filing separately), effective after December 31, 2025. However, this new limit is not indexed for inflation.
The OBBB eliminates tax-free reimbursements for bicycle commuting incentives as of December 31, 2025. Previously, employers could offer a tax-free incentive of $20 per month for biking to work.
For further details on how these changes might affect your plans or next renewal period, AssuredPartners Account Executives are available for consultation.