With large shifts in Medicaid eligibility and federal healthcare funding underway, new tools like expanded HSAs and smarter HRAs may play a critical role in helping small employers and working families stay covered.
The recently passed “Big Beautiful Bill” introduces 14 significant updates to Health Savings Accounts (HSAs) and Health Reimbursement Arrangements (HRAs). These changes could reshape how individuals and small businesses manage healthcare costs. TexHealth is here to help you understand and navigate these changes.
Highlights from the Bill:
- Higher HSA contribution limits mean employees can save more pre-tax for healthcare needs.
- Expanded eligibility allows more Americans—including part-time workers and some Medicare enrollees—to open or contribute to HSAs.
- Eased restrictions on over-the-counter meds and telehealth services provide real, everyday value.
- HRAs are getting smarter, with more flexibility for employers to reimburse premiums and out-of-pocket costs—without tripping over compliance traps.
- Direct Primary Care is supported: HSAs can now cover up to $150/month (individual) or $300/month (family) for DPC subscriptions.
- FSA/HRA rollover to HSA: Unused balances can be transferred to HSAs, up to the annual FSA limit.
Check out the full list of 14 updates at BenefitsPro
As a longtime advocate for accessible coverage for small businesses, TexHealth sees real potential in these updates.These aren’t just bureaucratic tweaks—they’re lifelines for small employers trying to compete in a tight labor market and for workers navigating high-deductible plans.
But let’s be clear: these changes only matter if implemented equitably and clearly. We need state regulators like Texas Department of Insurance (TDI) and the IRS to prioritize clarity and outreach, so Main Street doesn’t get left behind.
Let’s keep pushing for policies that support proactive, preventive care—not just reactive spending. And let’s make sure every small business knows how to put these tools to work.