Small businesses looking for cost-effective, employee-friendly benefits may soon have even more reason to consider high-deductible healthcare plans (HDHPs).
The plans, especially when paired with health savings accounts (HSAs), have grown in popularity among employers and employees alike. Companies like the cost-conscious behaviors that HDHP + HSA setups often encourage; employees appreciate the tax advantages and flexibility, not to mention the long-term savings potential.
Now, with the introduction of the One Big Beautiful Bill Act, the plans are becoming even more flexible, appealing to a wider swath of workers.
For the first time, individuals enrolled in Bronze or Catastrophic ACA marketplace plans can contribute to HSAs. By expanding eligibility beyond traditional HDHPs, the law grants HSA access to more employees. This creates a new opportunity for employers with workers who purchase coverage on the exchange to boost the appeal of their benefits package.
Additionally, the new law gives employers more flexibility in how they structure care under HDHPs. For instance, telehealth and other remote services can be used before the deductible is met, without jeopardizing HSA eligibility. Previously, HDHPs had to stick to the strict rule of no benefits being paid before the deductible. The only exception was preventive care.
Now, employees can hop on a virtual doctor visit for $0 or a reduced copay sooner. It’s a nice perk that could be especially relevant for employers with workers in rural areas and other healthcare deserts.
The law also removes some of the ambiguity that previously existed around direct primary care (DPC) arrangements and their HSA eligibility. DPCs are like subscriptions to a doctor’s office. Patients pay a flat monthly fee for unlimited visits with their doctor, making budgeting for medical expenses a lot easier. The new bill allows employees to pay for these monthly payments with their pre-tax HSA dollars.
For business owners looking to leverage the changes for improved affordability and overall employee experience, there are a handful of practical steps to consider:
Review current health plan design. If you only offer traditional HDHPs, consider whether adding Bronze or Catastrophic options through the exchange could now make sense for your recruitment strategy.
Update benefits communications. Make sure employees understand that telehealth visits and DPC memberships may now be HSA eligible.
Revisit HSA contribution strategies. Consider contributing seed money or matching contributions to employee HSAs.
Market the changes as a retention tool. Feature these updates in recruiting and retention conversations. Especially as the cost of living rises, flexible healthcare benefits with HSAs are compelling for a wide range of employee groups.
The recent changes to HDHPs and HSAs give small businesses more flexibility to control costs while potentially attracting new segments of the workforce. Understanding how these updates fit into your overall compensation and retention strategies can feel complex, but you don’t have to navigate it alone. Get in touch if Bank Iowa can join you in exploring how these options can support your company’s long-term financial growth.