New HSA News: 3 Million Americans Newly Eligible for Tax-Advantaged Health Savings

The 2025 tax code overhaul has opened significant opportunities for American healthcare consumers. Thanks to recent legislative changes, approximately 3 million additional people can now take advantage of Health Savings Accounts (HSAs)—a powerful tool for tax-free healthcare expense management. This expanded eligibility represents a major shift in how Americans can approach medical cost planning.

Bronze Plans Now Open Door to HSA Benefits

For years, Bronze-level health insurance plans—which account for roughly 30% of all marketplace selections—were excluded from HSA eligibility. These affordable, entry-level plans offered low monthly premiums but couldn’t be paired with HSA tax advantages. Starting in early 2026, that restriction changed dramatically. Bronze plans now qualify for HSA contributions alongside catastrophic coverage options, fundamentally expanding access to these tax-advantaged accounts.

Similarly, the updated rules created opportunities for individuals in direct primary-care arrangements and adjusted eligibility requirements for catastrophic plans, now allowing people over 30 to enroll in certain instances. Previously, such plans were restricted to those under 30, limiting options for older adults seeking flexible coverage.

How HSA Changes Expand Your Healthcare Savings Options

So what makes HSAs such a valuable addition to your financial toolkit? Unlike Flexible Spending Accounts (FSAs), where unused funds disappear at year-end, HSA balances persist indefinitely. Your savings can be invested and grow tax-free over decades, providing a retirement healthcare nest egg that compounds over time.

An HSA operates on simple but powerful principles: you contribute tax-free dollars, pay for qualified medical expenses without tax consequences, and retain unused funds for the future. For 2026, to qualify for an HSA through a traditional high-deductible health plan route, individuals need coverage with at least $1,700 deductible (or $3,400 for family coverage). The newly eligible Bronze and catastrophic plans meet these thresholds, creating multiple pathways to HSA access.

Qualifying Medical Expenses: What Your HSA Can Cover

HSA flexibility extends to a surprisingly broad range of healthcare costs. Your account can cover:

• Over-the-counter and prescription medications
• Dental services and procedures
• Eye care including contact lenses and eyeglasses
• Diagnostic testing and screenings
• Ambulance services
• Surgical procedures
• Mental health and psychiatric services
• Preventative wellness programs, including weight-loss initiatives

This comprehensive scope means HSAs work as both immediate expense tools and long-term retirement savings vehicles. You’re not locked into using funds within a specific timeframe—instead, you control when and how to deploy your healthcare savings.

Making Your Move: Steps to Maximize Your HSA Opportunity

The first step is verifying your eligibility. Review your current health plan to determine if it now qualifies under the revised guidelines. If you hold a Bronze plan or catastrophic coverage, you’ve likely just gained HSA access. For those in traditional high-deductible plans, confirm your deductible meets 2026 thresholds.

Once confirmed as eligible, consider your contribution strategy. Whether funding immediate medical needs or building long-term healthcare reserves, HSAs adapt to your financial situation. The combination of immediate tax deductions, tax-free growth, and perpetual fund availability creates a unique advantage—no other savings vehicle offers all three benefits simultaneously.

The expansion of HSA eligibility represents substantial news for millions of Americans seeking smarter healthcare financing options. With Bronze plans and additional coverage types now opening HSA doors, this is an ideal moment to evaluate whether this tax-advantaged strategy aligns with your healthcare and financial goals.