1.14 Health Savings Accounts _ new

Legislative History

March 2020

CARES Act — Original Safe Harbor
Pre-deductible telehealth coverage permitted in HDHPs. Effective through plan years ending Dec. 31, 2021.

2022-2024

Repeated Temporary Extensions
Congress extended the safe harbor multiple times on a temporary, year-by-year basis — creating planning uncertainty each year for employers and employees.

Jan 1, 2025

Safe Harbor Lapsed — Gap Period
Authorization expired. HDHPs that covered telehealth before the deductible were in a regulatory gray zone for plan years beginning Jan. 1, 2025 — until OBBBA was signed.

Jul 4, 2025

OBBBA §71306 — Permanent & Retroactive
Safe harbor made permanent with no expiration date. Retroactively covers all plan years beginning after Dec. 31, 2024 — closing the gap period entirely.

Introduction & Learning Objectives

What Changed and Why — OBBBA §§71306, 71307, 71308
IRC §223 • Pub. L. 119-21 (July 4, 2025) • IRS Notice 2026-5 (Dec. 9, 2025)

The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, made three significant changes to IRC §223, each designed to expand HSA access by relaxing the historically strict HDHP requirements. Prior to this legislation, strict definitions regarding HDHPs and disqualifying coverage often prevented taxpayers from using HSAs despite having high out-of-pocket medical costs.

The IRS issued Notice 2026-5 on December 9, 2025 to provide technical Q&A guidance on all three provisions. Comments were accepted through March 6, 2026; additional guidance may follow.

2026 HSA Contribution Limits & HDHP Thresholds

HSA Limit — Self-Only
$4,400

Rev. Proc. 2025-19

HSA Limit — Family
$8,750

Rev. Proc. 2025-19

HDHP Min. Deductible — Self
$1,700

Standard HDHP only

HDHP Min. Deductible — Family
$3,400

Standard HDHP only

HDHP OOP Max — Self
$8,500

Excl. bronze & catastrophic

HDHP OOP Max — Family
$17,000

Excl. bronze & catastrophic

Important: Limits Do Not Apply to Bronze & Catastrophic Plans
The standard HDHP minimum deductible ($1,700/$3,400) and OOP maximum ($8,500/$17,000) thresholds do not apply to bronze and catastrophic plans that are now deemed HDHPs under §71307. Those plans qualify regardless of whether they meet these thresholds — that is the entire point of the deemed HDHP rule.

Legislative History

March 2020

CARES Act — Original Safe Harbor
Pre-deductible telehealth coverage permitted in HDHPs. Effective through plan years ending Dec. 31, 2021.

2022-2024

Repeated Temporary Extensions
Congress extended the safe harbor multiple times on a temporary, year-by-year basis — creating planning uncertainty each year for employers and employees.

Jan 1, 2025

Safe Harbor Lapsed — Gap Period
Authorization expired. HDHPs that covered telehealth before the deductible were in a regulatory gray zone for plan years beginning Jan. 1, 2025 — until OBBBA was signed.

Jul 4, 2025

OBBBA §71306 — Permanent & Retroactive
Safe harbor made permanent with no expiration date. Retroactively covers all plan years beginning after Dec. 31, 2024 — closing the gap period entirely.

1.14 Health Savings Accounts _ new

Legislative History

CARES Act — Original Safe HarborPre-deductible telehealth coverage permitted in HDHPs. Effective through plan years ending Dec. 31, 2021.

Repeated Temporary ExtensionsCongress extended the safe harbor multiple times on a temporary, year-by-year basis — creating planning uncertainty each year for employers and employees.

Safe Harbor Lapsed — Gap PeriodAuthorization expired. HDHPs that covered telehealth before the deductible were in a regulatory gray zone for plan years beginning Jan. 1, 2025 — until OBBBA was signed.

OBBBA §71306 — Permanent & RetroactiveSafe harbor made permanent with no expiration date. Retroactively covers all plan years beginning after Dec. 31, 2024 — closing the gap period entirely.

Introduction & Learning Objectives

What Changed and Why — OBBBA §§71306, 71307, 71308IRC §223 • Pub. L. 119-21 (July 4, 2025) • IRS Notice 2026-5 (Dec. 9, 2025)

2026 HSA Contribution Limits & HDHP Thresholds

HSA Limit — Self-Only$4,400

HSA Limit — Family$8,750

HDHP Min. Deductible — Self$1,700

HDHP Min. Deductible — Family$3,400

HDHP OOP Max — Self$8,500

HDHP OOP Max — Family$17,000

Legislative History

CARES Act — Original Safe HarborPre-deductible telehealth coverage permitted in HDHPs. Effective through plan years ending Dec. 31, 2021.

Repeated Temporary ExtensionsCongress extended the safe harbor multiple times on a temporary, year-by-year basis — creating planning uncertainty each year for employers and employees.

Safe Harbor Lapsed — Gap PeriodAuthorization expired. HDHPs that covered telehealth before the deductible were in a regulatory gray zone for plan years beginning Jan. 1, 2025 — until OBBBA was signed.

OBBBA §71306 — Permanent & RetroactiveSafe harbor made permanent with no expiration date. Retroactively covers all plan years beginning after Dec. 31, 2024 — closing the gap period entirely.

CARES Act — Original Safe Harbor
Pre-deductible telehealth coverage permitted in HDHPs. Effective through plan years ending Dec. 31, 2021.

Repeated Temporary Extensions
Congress extended the safe harbor multiple times on a temporary, year-by-year basis — creating planning uncertainty each year for employers and employees.

Safe Harbor Lapsed — Gap Period
Authorization expired. HDHPs that covered telehealth before the deductible were in a regulatory gray zone for plan years beginning Jan. 1, 2025 — until OBBBA was signed.

OBBBA §71306 — Permanent & Retroactive
Safe harbor made permanent with no expiration date. Retroactively covers all plan years beginning after Dec. 31, 2024 — closing the gap period entirely.

What Changed and Why — OBBBA §§71306, 71307, 71308
IRC §223 • Pub. L. 119-21 (July 4, 2025) • IRS Notice 2026-5 (Dec. 9, 2025)

HSA Limit — Self-Only
$4,400

HSA Limit — Family
$8,750

HDHP Min. Deductible — Self
$1,700

HDHP Min. Deductible — Family
$3,400

HDHP OOP Max — Self
$8,500

HDHP OOP Max — Family
$17,000

CARES Act — Original Safe Harbor
Pre-deductible telehealth coverage permitted in HDHPs. Effective through plan years ending Dec. 31, 2021.

Repeated Temporary Extensions
Congress extended the safe harbor multiple times on a temporary, year-by-year basis — creating planning uncertainty each year for employers and employees.

Safe Harbor Lapsed — Gap Period
Authorization expired. HDHPs that covered telehealth before the deductible were in a regulatory gray zone for plan years beginning Jan. 1, 2025 — until OBBBA was signed.

OBBBA §71306 — Permanent & Retroactive
Safe harbor made permanent with no expiration date. Retroactively covers all plan years beginning after Dec. 31, 2024 — closing the gap period entirely.