On July 4, 2025, President Trump signed into law the One Big Beautiful Bill (OBBB)—a sweeping legislative package that includes several important updates impacting employer-sponsored benefit plans. These changes offer both new opportunities and compliance considerations for employers beginning in 2025 and beyond.

Below is a summary of the most relevant employee benefits provisions to help you stay informed and proactive:

 Telehealth & HSAs: Permanent Relief

• Telehealth Services can now be provided to employees with a High-Deductible Health Plan (HDHP) before the deductible is met, without disqualifying HSA eligibility.
• This change, previously enacted temporarily, is now permanent and retroactive to January 1, 2025.

Employer Action:
You may continue to offer telehealth as a standalone or embedded benefit within your HDHP offerings without impacting HSA contribution eligibility.

Direct Primary Care (DPC) Becomes HSA-Compatible

• Starting in 2026, employees enrolled in DPC arrangements can still contribute to an HSA, so long as the DPC is limited to primary care services.
• Starting in 2026, HSA funds can be used to pay for DPC fees tax-free.  However, the fees may not exceed $150/month for an individual or $300/month for a family (indexed for inflation).

 Employer Action:
Since this relief is retroactive to plan years beginning after Dec. 31, 2024, plan sponsors who began charging HDHP participants fair market value (FMV) for telehealth services received prior to the satisfaction of the deductible can either keep their decision in place or pivot by reimbursing the FMV assessments already charged with either cash or HSA contributions. Plan sponsors who decided not to charge for telehealth in hopes of extended relief can rely on the retroactive effect of this relief and do not need to take action.

 Dependent Care FSA Limit Increased

• For tax years after 2025, the Dependent Care FSA annual contribution limit increases to:
  • $7,500 for individuals or married couples filing jointly
  • $3,750 for married individuals filing separately

 Employer Action:
Prepare to update your Section 125 cafeteria plan documents and employee communications ahead of the 2026 plan year.

Paid Family & Medical Leave Tax Credit Made Permanent

• The Section 45S paid leave tax credit is now permanent.
• Eligibility has expanded to employees with just 6 months of service (previously 12 months).
• The credit is available for wages paid directly by the employer or insurance premiums, but not both.

 Employer Next Steps

1. Review your HDHP and HSA offerings for 2025 and 2026.
2. Plan for DPC integration, especially if you’re exploring primary care cost containment or retention strategies.
3. Prepare Section 125 and FSA plan document updates for 2026.
4. Consider utilizing enhanced tax credits for paid family leave.

Have Questions? We’re Here to Help.
If you’d like a custom review of how these changes affect your benefit strategy or compliance posture, please contact us at Inspire Workforce.