New Healthcare Savings Act Revolutionizes HSA and FSA Benefits for El Paso Residents

The One Big Beautiful Bill Act (OBBBA), signed into law in late 2025, brings significant changes to health savings accounts (HSA) and flexible spending accounts (FSA), marking the first major update in over a decade. Effective January 1, 2026, the act expands HSA eligibility, increases dependent care FSA contribution limits, and allows telehealth services to be covered without disqualifying HSA access. These changes aim to alleviate rising healthcare costs and enhance savings opportunities for families, particularly those managing child care expenses. Employers in El Paso need to review and amend their benefit plans to comply with the new regulations, ensuring they meet IRS requirements to avoid penalties.

Key Details: • Effective January 1, 2026, telehealth services will not disqualify HSA eligibility. • Dependent care FSA contribution limits will increase permanently. • Employers must amend plan documents to reflect new eligibility rules by the start of the 2026 plan year. • Direct primary care arrangements can now coexist with HSAs under specific conditions. • Employers should ensure compliance to avoid penalties related to HSA eligibility.