While most of America was grilling hot dogs and pretending to care about fireworks safety, Congress quietly passed a monster piece of legislation: the One Big Beautiful Bill (OBBB). And believe it or not, buried in all the noise are real, practical updates that impact how employers can offer benefits and how employees can use them.

Here’s the short version of what actually matters:

🩺 Direct Primary Care (DPC) Is Officially a Tax-Free Benefit

For the first time, DPC memberships are explicitly listed as a qualified medical expense under IRS rules. That means, effective January 1, 2026:

• Employees can pay DPC fees tax-free through HSA, HRA, FSA, or ICHRA.

• Employers can offer or reimburse DPC memberships through compliant plan designs.

• Best of all, DPC no longer disqualifies HSA eligibility.

If you’ve been circling around DPC but weren’t sure if it was “safe” it is now.

 

🧓 Older Workers Can Keep Contributing to Their HSAs

Employees eligible for Medicare Part A (but not yet drawing Social Security) can now continue to fund their HSA. This change opens the door for smarter retirement planning and tax strategy especially for late-career employees who want to bank HSA dollars longer.

 

🍼 Dependent Care FSAs Just Got a Raise

Contribution limits are increasing, which is great news for parents trying to stretch tax savings on daycare and afterschool programs. The IRS will finalize the new cap soon, but employers should be ready to update their plan documents and enrollment materials this fall.

 

💡 A Few Other Notables:

• The proposed cafeteria plan expansion didn’t make it in. You still can’t let employees pay for Exchange coverage pre-tax.
  

• More flexibility is coming to what qualifies as a 213(d) medical expense, so your benefit design can go beyond just premiums and co-pays.

What to Do Next:

These aren’t theoretical changes. They’re real, they’re active now, and they open up opportunities to improve your plan strategy without waiting on the next renewal cycle.

If you’re thinking about DPC, HSAs, ICHRAs, or just want to give your employees more value without throwing more money at insurance, let’s talk. I’ll walk you through what’s possible under the new rules and what would actually work for your team.