What's Happening?
Self-employed individuals, such as freelancers and small-business owners, can open a health savings account (HSA) if they have a qualified high-deductible health plan (HDHP). An HSA offers tax advantages
and can be used to pay for qualified medical expenses with tax-free dollars. The One Big Beautiful Bill Act (OBBBA) will expand eligibility for HSAs starting January 1, 2026, by reclassifying certain Affordable Care Act marketplace plans as qualifying HDHPs. This change will make it easier for more self-employed individuals to benefit from HSAs.
Why It's Important?
HSAs provide a valuable financial tool for self-employed individuals to manage healthcare costs and reduce taxable income. The expansion of eligibility under the OBBBA will allow more entrepreneurs to take advantage of these benefits, potentially leading to significant savings on medical expenses. As healthcare costs continue to rise, having access to an HSA can offer financial relief and improve overall financial planning for self-employed individuals.
