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CareersWhat Employers Need to Know Now: Updates from the One Big Beautiful Bill Act
Back in July, the One Big Beautiful Bill Act (OBBBA) made headlines for its sweeping changes to employee benefits. With new guidance released, it's time for employers to take a fresh look at what’s changed and what actions may be needed heading into 2026.
Here are the key updates you should know:
1. Telehealth Coverage Flexibility Is Now Permanent
High-deductible health plans (HDHPs) can continue to cover telehealth and remote care services before the deductible is met—without impacting employees’ health savings account (HSA) eligibility. This change, retroactive to January 1, 2025, provides employers with long-term flexibility to support virtual care access and enhance employee satisfaction.
2. Expanded HSA Eligibility Through DPC and Marketplace Plans
Starting in 2026, employees enrolled in qualifying Direct Primary Care (DPC) arrangements—capped at $150 per month for individuals or $300 per month for families—can contribute to HSAs. Additionally, bronze and catastrophic Marketplace plans will now be treated as HDHPs, expanding HSA eligibility to more employees, particularly those utilizing Individual Coverage Health Reimbursement Arrangements (ICHRAs) or Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs).
3. HSA Reimbursement for DPC Fees
In addition to expanded eligibility, fees paid for qualifying DPC arrangements will now be considered eligible medical expenses for HSA reimbursement. This provides employees with more flexibility in how they utilize their HSA dollars.
4. Higher Dependent Care FSA Limits
Beginning in 2026, the annual dependent care flexible spending account (FSA) limits will increase to $7,500 for single or joint filers and $3,750 for married individuals filing separately. Employers should prepare to update plan documents and systems ahead of open enrollment.
5. Student Loan Repayment Made Permanent
The ability to offer tax-favored student loan repayment through educational assistance programs (indexed annually up to $5,250) is now permanent. This is a great opportunity to support employees’ financial wellness and retention.
6. DCAPs Changes
The annual reimbursement limit for Dependent Care Assistance Programs (DCAPs) will increase to $7,500 in 2026 (or $3,750 for married individuals filing separately). This amount is still not indexed for inflation, meaning it will remain at $7,500 until Congress changes the limit again.
7. Qualified Transportation Plans
Starting in 2026, the ability to reimburse employees for bicycle commuting expenses on a tax-favored basis is permanently removed. Additionally, the method for calculating annual inflation adjustments to qualified transportation benefits, such as transit and parking, has been modified.
What’s Next for Employers?
With many of these changes taking effect in 2026, now is the time to review your benefit offerings, update plan documents, and prepare for open enrollment. Whether you're looking to expand HSA access, support student loan repayment, or offer new family-friendly benefits, the OBBBA opens the door to more flexibility and impact.
If you have questions, please contact your North Risk Partners Risk Advisor. Don’t have an advisor? No problem. We’ll help you find one.
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