Breaking down the biggest benefits changes from Trump’s new legislation – and what you should do next.
On July 4, 2025, the One Big Beautiful Bill (OBBB) was signed into law. While its name may be bold, the bill itself delivers a wide range of real, impactful changes – especially for HR professionals, benefits managers, and employers looking to stay compliant and competitive.
In Part 1 of our breakdown, we’ll focus on the changes that affect healthcare, FSAs, and employer-provided savings options. Part 2 will cover new savings tools like Trump Accounts, student loan repayment, and fringe benefit updates.
Let’s dive in.
Telehealth Just Got a Big Boost
For a long time, employers have struggled with how to cover telehealth services under high-deductible health plans (HDHPs) without impacting HSA eligibility. The OBBB changes that.
What’s new:
• Telehealth services can now be covered pre-deductible under HDHPs – permanently.
• This rule applies retroactively for 2025 and fully into future plan years.
What this means for you:
• Employees now benefit from more accessible, affordable care – a big win for engagement.
• Employers can offer first-dollar telehealth coverage without affective HSA eligibility.
More Plans Now Qualify for HSAs
The bill has also expanded what counts as a high-deductible health plan.
What’s new:
• Bronze and Catastrophic marketplace plans now qualify as HDHPs.
• Direct Primary Care (DPC) arrangements also count toward HSA eligibility.
What this means for you:
• Employees in these plans may now contribute to HSAs for the first time.
• Employers offering marketplace or DPC alternatives need to revisit eligibility notices and onboarding materials.
Dependent Care FSAs Just Got More Generous
Childcare continues to be a major pain point for many working families. In fact, U.S. families spend between 8.9% and 16% of their median income on full-time child care. The OBBB takes aim at easing that burden.
What’s new:
• The Dependent Care FSA (DCFSA) contribution limit increases to $7,500 starting in 2026 (up from $5,000).
• Married couples filing separately can each contribute up to $3,750.
What this means for you:
• Employers should prepare to update plan documents, payroll systems, and employee communications.
• Increased flexibility could improve participation and satisfaction.
Childcare Tax Credits Expand for Employers
There’s also good news on the employer incentive side.
What’s new:
• The employer childcare facility tax credit is increased.
• Employers can now claim up to 40% of qualifying childcare expenses, up to $600,000.
• Small employers may qualify for up to 50%.
What this means for you:
• If you’re offering childcare support or considering it, 2026 may be the time to invest.
• Enhanced tax credits could offset real costs and elevate your benefits offering.
What Employers Should Do Now
If you’re in HR, benefits, or compliance, this is a good time to:
• Review your benefits plan documents and plan summaries.
• Update Open Enrollment materials to reflect changes to telehealth, FSAs, and HSAs.
• Educate employees on how these updates affect them.
• Collaborate with vendors to ensure systems and communications are aligned.
Looking for help simplifying your benefits communications? We specialize in making complex topics like these clear and compelling. From explainer videos to custom campaigns, we help employers drive engagement through better communications.
Click here to contact us! Let’s make your message stick.
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