Below is an updated, consumer‑focused summary of the key HSA and FSA provisions in the 2025 reconciliation bill, weaving together insights from KFF, buyFSA, and the Bipartisan Policy Center. Wherever possible, I’ve highlighted concrete ways cardholders can benefit—and reminded readers that these changes apply beginning with the 2026 tax year.
House Passage & Context
On May 22, 2025, the U.S. House approved a budget reconciliation bill that includes sweeping changes to Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs), among many other health provisions (KFF). The bill now heads to the Senate and, if signed, will reshape how millions save for and pay medical costs.
Key HSA & FSA Updates
Higher Contribution Limits
HSAs: Starting in 2026, individual limits rise by $4,300 (to a total of $—) and family limits by $8,550 (buyFSA).
Income Phase‑outs begin at $75,000 (single) and $150,000 (joint).
Expanded Eligibility
Spouses on FSAs can now both save in an HSA (so long as the FSA doesn’t reimburse the HSA‑holder’s own expenses).
Medicare Part A‑only enrollees regain HSA eligibility.
Access to on‑site clinics (even low‑ or no‑cost) no longer disqualifies HSA participation (buyFSA).
New Eligible Expenses: Fitness & Wellness
Gym memberships and participation fees for classes (e.g., yoga, dance, boot camps) become reimbursable up to $500 per individual or $1,000 per family each calendar year (split evenly by month) (buyFSA).
Direct Primary Care (DPC) Coverage
HSAs may cover DPC subscriptions—flat monthly fees for unlimited primary care—up to $150/month for individuals and $300/month for families (buyFSA).
Simplified Catch‑Up Contributions
Couples aged 55+ can each make the catch‑up deposit into one joint HSA (instead of separate accounts) (buyFSA).
Retroactive Reimbursements
A 60‑day “look‑back” window lets first‑time HSA holders reimburse qualified expenses incurred before account opening (buyFSA).
FSA‑to‑HSA Rollover
Unused FSA balances (up to the FSA limit) can roll into an HSA when moving to a High‑Deductible Health Plan (buyFSA).
Broader “Tax‑Advantaged” Account Reforms
The bill also codifies expanded use of Individual Coverage HRAs and other flex‑benefits, further boosting employer‑sponsored plan options (Bipartisan Policy Center).
Consumer Benefits & Opportunities
Boost Your Tax Savings. With higher caps, you can shelter more pre‑tax dollars—freeing up take‑home pay.
Invest in Your Health. Have you been eyeing a gym membership, spin class, or meditation course? Now you can pay with HSA/FSA dollars.
Plan for Routine & Specialty Care. Use the DPC allowance to lock in affordable primary‑care access, then spend the freed funds on specialist visits or therapies.
Simplify Couples’ Savings. If both spouses are near retirement, consolidating catch‑up deposits can turbo‑charge joint HSA growth.
Bridge the Gap on Plan Changes. Switching to an HDHP? Roll leftover FSA funds into your new HSA—no “use‑it‑or‑lose‑it” stress.
What would you spend your extra funds on? A personal trainer? A peloton subscription? Consider setting aside a portion for preventative care—then use the rest to pursue activities you love, knowing you’re still saving on taxes.
Effective Date & Next Steps
All of these enhancements take effect for tax years beginning after December 31, 2025—i.e., with your 2026 filings (buyFSA). In the meantime:
Evaluate Your Plan Options. If you’re eligible, compare HDHP+HSA vs. traditional plans.
Maximize 2025 Contributions. Increase your 2025 deferrals in anticipation of the new limits.
Discuss with Your Employer. Encourage them to offer HSA contributions or permit FSA‑to‑HSA rollovers.
Budget for New Expenses. Decide whether to allocate funds to fitness, DPC, or other newly eligible services.
By planning now, you’ll be ready to harness these new tax‑saving and wellness opportunities as soon as the law takes effect.
References
Kaiser Family Foundation, Health Provisions in the 2025 Federal Budget Reconciliation Bill, updated May 22, 2025 (KFF)
Mike Bonfigli, Major 2025 Tax Bill Expands HSA and FSA Benefits, buyFSA, May 22, 2025 (buyFSA)
Jonathan W. Burks & G. William Hoagland, 2025 Reconciliation Debate: Health Provisions, Bipartisan Policy Center, May 14 2025 (Bipartisan Policy Center)