Healthcare Reform in the “One Big Beautiful Bill”

On July 4, 2025 the federal government passed the One Big Beautiful Bill (OBBB), that introduces significant enhancements to many of the employee benefit programs offered by OCA.

As your trusted TPA partner, we’re committed to guiding you through these updates and helping your organization stay compliant and proactive.

Key Provisions That Affect May Your Benefit Programs

Expanded HSA eligibility

• ACA Bronze and Catastrophic plans: Previously, ACA Bronze and Catastrophic plans were disqualified from HSA eligibility due to high out-of-pocket limits. The bill reclassifies these plans as HSA-eligible high-deductible health plans (HDHPs), vastly expanding the eligible population — by approx. 7.5 million, according to ABA estimates.

• Direct primary care (DPC): The bill permits DPC memberships to be used in conjunction with an HSA, allowing those otherwise eligible but for the DPC to establish and contribute to an HSA. DPC subscription services are limited to $150/month (individual) or $300/month (family).

• Telehealth safe harbor for HSAs: The OBBB makes permanent the COVID-era safe harbor for HDHPs to provide telehealth services prior to meeting the deductible. This provision is retroactive to January 1, 2025.

Dependent Care Assistance Plan (DCAP) limits

• For the first time since the inception of DCAPs, the current limit will increase from $5,000 to $7,500 (married filing jointly) and from $2,500 to $3,750 (married filing separately). This increase will be effective for plan years beginning after December 31, 2025.

Qualified Transportation Benefits

• The OBBB permanently repeals the qualified bicycle commuting reimbursement benefit, which had been suspended after 2017. Beginning in 2026, any employer reimbursements for bike commuting will be taxable to employees and no longer deductible by employers.

• Other transportation benefits like parking and transit remain unchanged.

Looking Ahead

This law represents a meaningful shift toward greater flexibility and accessibility in employee healthcare. With additional legislative support, further reforms could be on the horizon. Rest assured, we’ll continue to keep you and your employees informed every step of the way.

For questions or implementation support, please contact your account manager.