The recently enacted One Big Beautiful Bill Act (OBBBA) introduces several permanent and far-reaching changes to the employee benefits landscape. Many of these updates are especially significant for small and mid-sized employers navigating rising benefit costs, workforce expectations, and ongoing compliance obligations.
Taken together, the OBBBA reflects a broader policy shift toward expanding employer flexibility while leveraging the tax code to promote workforce participation, family support, and long-term savings. Employers should take note of these developments and consider how they may impact plan design, employee communications, and overall benefits strategy in the years ahead.
Permanent Reinstatement of First-Dollar Telehealth Coverage for HDHPs
One of the most impactful changes under the OBBBA is the permanent reinstatement of first-dollar telehealth coverage for High Deductible Health Plans (HDHPs). Beginning with plan years after December 31, 2024, employers may once again offer telehealth services without requiring participants to satisfy their deductible first—without jeopardizing Health Savings Account (HSA) eligibility.
Previously, this flexibility existed only through temporary pandemic-era relief and short-term legislative extensions, leaving employers uncertain about whether and how to incorporate telehealth into their benefit offerings. The OBBBA resolves this uncertainty by making the telehealth safe harbor permanent.
This change provides long-term stability for employers and employees alike and recognizes telehealth as an essential component of modern healthcare access. Employers offering HDHPs can now confidently integrate telehealth benefits as a cost-effective tool to support employee well-being, improve access to care, and potentially reduce downstream healthcare costs.
Expanded Dependent Care FSA Limits
The OBBBA also modernizes dependent care benefits by increasing the annual Dependent Care Flexible Spending Account (FSA) contribution limit. Beginning in 2026, the maximum contribution will rise to $7,500, or $3,750 for married individuals filing separately.
While this increase represents a meaningful update—particularly for working parents facing rising childcare costs—the new limit is not indexed for inflation. As a result, affordability concerns may re-emerge over time if childcare expenses continue to rise faster than statutory thresholds.
Employers sponsoring dependent care FSAs should prepare to update plan documents, payroll systems, and employee communications to reflect the new limits and ensure proper administration once the changes take effect.
Additional Notable Benefit-Related Provisions
In addition to telehealth and dependent care updates, the OBBBA includes several other provisions that may affect employer benefit programs:
- Expanded HSA eligibility for individuals enrolled in Bronze and Catastrophic plans offered through the health insurance exchanges, broadening access to tax-advantaged savings opportunities.
- Permanent authorization of tax-free employer student loan repayment assistance under Section 127, allowing employers to continue offering this increasingly popular benefit without fear of expiration.
- Enhanced employer tax credits for childcare assistance and paid family and medical leave, with more favorable treatment and incentives for small employers.
- The introduction of “Trump Accounts,” a new child-focused savings vehicle featuring limited investment options and potential employer contributions. While still evolving, these accounts signal an increased emphasis on early-life savings and long-term financial planning.
Each of these provisions presents both opportunities and compliance considerations, depending on an employer’s size, workforce demographics, and existing benefit structure.
What Employers Should Do Next
The OBBBA’s benefit-related provisions offer new tools for employers—but they also require careful evaluation. Employers should assess how these changes align with their current benefits strategy, workforce needs, and administrative capabilities. In some cases, plan amendments, vendor coordination, or updated employee communications may be necessary.
Given the complexity of benefit design and tax-advantaged programs, employers are encouraged to work closely with legal counsel and benefits advisors to ensure compliance while maximizing the value of available opportunities.