One Big Beautiful Bill Act: Provisions Impacting Employee Benefit Plans
President Trump signed the One Big Beautiful Bill Act (“OBBB”) into law on July 4, 2025. The Act includes some provisions that impact employee benefit plans, highlighted below. Most provisions take effect January 1, 2026, unless otherwise noted below.
As your trusted third-party benefits administrator, we’re committed to keeping you up-to-date on the latest legislative and regulatory developments that impact your benefit plans. This article will highlight provisions in the OBBB that impact employee benefit plans.
Permanent Telehealth Relief:
Under the CARES Act, a high-deductible health plan (“HDHP”) could temporarily cover telehealth and other remote care services pre-deductible without making individuals ineligible to contribute to an HSA. This safe harbor previously ended December 31, 2024. OBBB permanently extended the telehealth safe harbor and made the relief retroactive to plan years beginning after 2024, allowing individuals to use telehealth benefits under an HDHP without meeting the applicable plan deductible.
Favorable Treatment for Coverage Under Direct Primary Care Service Arrangements (DPCSA):
This provision would permit HSA-eligible individuals enrolled in DPCSAs to make or receive HSA contributions and allow individuals to use HSA funds to pay for certain DPCSA services. A DPSCA is medical care by primary care practitioners in exchange for a fixed periodic fee of no more than $150.00 per month, per employee ($300.00 if multiple individuals are covered). Additionally, fees paid under a DPCSA are treated as medical expenses and thus exempt for the prohibition that HSAs cannot pay for insurance.
Dependent Care FSAs:
OBBB increases the maximum annual contribution limit to a dependent care FSA to $7,500, or to $3,750 for individuals who are married filing separately. This limit is not indexed for inflation.
Compliance Matters, and Zenith is Here to Help
Navigating the regulatory landscape can be overwhelming, but staying compliant isn't just about avoiding penalties; it’s about building a stronger, more transparent benefits program that your employees can rely on. At Zenith American Solutions, we combine deep regulatory expertise with hands-on service to help you stay ahead of the curve. Whether it's adapting to new legislation, such as the One Big Beautiful Bill Act, or conducting regular plan audits, our team is dedicated to protecting your compliance and peace of mind.