The One Big Beautiful Bill Act brought several changes to the employee benefits landscape, particularly for health savings accounts (HSAs), dependent care benefits and individual health coverage. Now that the legislation is in place and additional guidance is available, employers have an opportunity to look beyond the initial changes and consider how these updates may shape their benefits strategies heading into 2027. 

From expanded HSA eligibility to increased interest in individual coverage health reimbursement arrangements (ICHRAs), employers have more options to consider as they work to manage costs, support employees and make benefits easier to understand and use. 

Greater Certainty Creates Opportunities for Employers 

One of the most important developments following the legislation is increased clarity. 

With additional regulatory guidance available, employers can better understand how the new provisions apply to their benefit plans. This gives organizations an opportunity to move away from reacting to legislative uncertainty and focus instead on evaluating their current offerings, preparing for future enrollment periods and improving the overall employee benefits experience. 

For many employers, that may mean taking a closer look at HSAs, alternative health coverage options and other benefits that can provide employees with greater flexibility. 

Three HSA Changes Employers Should Know 

HSAs continue to be an important tool for helping employees manage current healthcare expenses while saving for future medical costs. Recent changes expand HSA accessibility and provide employers with additional flexibility when designing their benefit programs. 

1. Permanent Telehealth Safe Harbor 

Employers can now offer first-dollar telehealth coverage without affecting an employee’s HSA eligibility. 

Previously, covering telehealth services before an employee met their health plan deductible could potentially interfere with HSA eligibility. Making the telehealth safe harbor permanent provides employers with more flexibility to offer convenient virtual care while employees maintain access to the tax advantages of an HSA. 

2. Direct Primary Care and HSA Eligibility 

Direct primary care (DPC) arrangements can now be compatible with HSA eligibility under certain requirements. 

DPC typically allows individuals to pay a recurring fee for access to primary care services. The change creates additional opportunities for employers interested in incorporating direct primary care into their overall benefits strategy while continuing to offer HSA-compatible coverage. 

3. Expanded HSA Eligibility for Individual Coverage 

Bronze and Catastrophic plans purchased through the individual market are now considered HSA-compatible. 

This change is particularly relevant as employers explore ICHRAs. Employees using an ICHRA to purchase qualifying individual coverage may have more opportunities to select an affordable health plan while also taking advantage of an HSA. 

Why ICHRAs Are Getting More Attention 

Individual coverage health reimbursement arrangements continue to gain attention as employers look for alternatives to traditional group health plans. 

With an ICHRA, an employer provides employees with a defined amount of tax-advantaged money that can be used to purchase individual health insurance coverage. 

This approach may be particularly appealing to smaller employers facing increasing healthcare costs or those without dedicated benefits staff. It can provide a way to offer meaningful health benefits while giving employees more flexibility in choosing coverage that fits their needs. 

ICHRAs may also provide opportunities for employers that already offer traditional group health coverage. Depending on plan design and applicable rules, employers may be able to offer ICHRAs to certain employee classes, including part-time or seasonal employees. 

This flexibility can help employers expand access to benefits while maintaining traditional group coverage for other eligible employee groups. 

Dependent Care FSA Limits Increase 

Another significant change is an increase to the dependent care flexible spending account (FSA) contribution limit. 

The annual limit increases from $5,000 to $7,500, giving employees the opportunity to set aside more pre-tax money for eligible dependent care expenses. 

Employers are not required to adopt the higher limit, but those that do may be able to provide additional support to employees managing the rising cost of childcare and other eligible care expenses. 

Employers should also continue to consider applicable nondiscrimination testing requirements when evaluating changes to their dependent care FSA. 

A New Benefit to Watch: Trump Accounts 

Trump Accounts are another new savings option employers may hear more about in the coming months. 

These accounts are designed to encourage long-term investing for children. Eligible children born during the designated eligibility period may receive a $1,000 federal government contribution. Families may also be able to establish accounts for other eligible children without receiving the federal seed contribution. 

Employers may eventually have opportunities to contribute to accounts on behalf of employees’ children or help facilitate employee contributions. 

Because implementation details, financial institution offerings and administrative processes are still developing, employers may want to continue monitoring this benefit before deciding whether it fits into their overall benefits strategy. 

Another Benefits Trend to Watch: GLP-1 Coverage 

Legislative changes are not the only issue shaping employee benefits. Employers are also evaluating how to approach coverage for GLP-1 medications. 

Growing demand for these medications has created new questions around cost, access and long-term benefit sustainability. Some employers are exploring alternative funding approaches or reimbursement strategies as they look for ways to balance employee access with overall plan costs. 

As options continue to evolve, employers will need to carefully evaluate potential strategies based on their workforce, benefit plan and budget. 

Technology Is Changing the Benefits Experience 

Technology, including artificial intelligence, is also changing how employees understand and use their benefits. 

Rather than simply providing an online enrollment experience, newer tools may help employees compare health plans, understand available benefits and make more informed decisions based on their individual circumstances. 

For employees with HSAs, improved education and decision-support tools may also help them better understand how much to contribute, when to use their funds and how an HSA can support both current healthcare needs and long-term savings goals. 

For employers, making benefits easier to understand can help improve engagement and encourage employees to get more value from the benefits available to them. 

Benefits Communication Should Happen Year-Round 

Even the strongest benefits package provides limited value if employees do not understand how to use it. 

Open enrollment is an important time for benefits education, but employees are often receiving a significant amount of information at once. Important details about HSAs, FSAs, voluntary benefits and other programs can easily get lost. 

Instead, employers can make benefits education an ongoing part of employee communication throughout the year. 

Effective communication should: 

• Use simple, easy-to-understand language 

• Explain how benefits apply to real-life situations 

• Reinforce important information throughout the year 

• Provide timely reminders when employees may be more likely to take action 

HSAs are a good example. Employees can generally adjust their HSA contribution elections throughout the year, subject to applicable limits and employer procedures. A reminder following a life event, change in expenses or other financial milestone may encourage an employee to revisit their contribution when the information is most relevant. 

Looking Ahead to 2027 

As employers prepare for 2027, greater legislative clarity creates an opportunity to take a more thoughtful approach to benefits planning. 

Expanding HSA opportunities, evaluating ICHRAs, considering higher dependent care FSA limits and monitoring emerging benefits are all areas employers may want to explore. Just as important is making sure employees understand the benefits already available to them. 

A well-designed benefits strategy is only part of the equation. Consistent education and communication can help employees make informed choices and get greater value from the benefits their employers provide. 

Advantage Administrators is here to help employers navigate HSAs, FSAs, HRAs and other tax-advantaged benefit accounts while making benefits administration easier for employers and employees alike.