Expanding Health Coverage and Access

On May 22, 2025, the U.S. House of Representatives passed the "One Big Beautiful Bill Act," a comprehensive legislative package that includes provisions from the Personal Health Investment Today (PHIT) Act of 2025. This bill aims to enhance healthcare affordability and accessibility for businesses and their employees. Here are some of the key wins we are tracking and what that means for you and your business:

1. Expanded Health Savings Account (HSA) Eligibility

• No High-Deductible Health Plan (HDHP) Requirement: Individuals are no longer required to enroll in an HDHP to contribute to an HSA. This change allows consumers to choose more comprehensive health plans while still benefiting from tax-advantaged savings for medical expenses.

  
  

2. Increased HSA Contribution Limits

• Higher Contribution Caps: The annual HSA contribution limits have been significantly increased to $9,000 for individuals and $18,000 for families. This adjustment provides greater flexibility for individuals and families to save for healthcare expenses on a tax-free basis.

  
  

3. Inclusion of Fitness and Wellness Expenses

• Qualified Sports and Fitness Expenses: The bill permits the use of up to $1,000 per year ($2,000 for families) from HSAs or Flexible Spending Accounts (FSAs) to cover qualified sports and fitness expenses, including gym memberships and certain fitness classes. This provision aims to promote preventive health measures and encourage active lifestyles.

  
  

Next Steps

The bill has passed the House and now moves to the Senate, where further deliberations and potential modifications may be forthcoming. If enacted, these changes are anticipated to take effect for the current tax year. We are following these changes closely and will be sure to provide updates as they become available.

We are optimistic about how this will further improve access to affordable care and prioritize health and wellness for businesses and their employees. If you are interested in learning more about the plans we offer, please reach out to us and we can create a personalized benefit for you and your team!