On July 4, 2025, President Donald Trump signed a major tax and spending bill, commonly referred to as the “One Big Beautiful Bill Act” (OBBB Act), into law. The OBBB Act includes changes for Employee Benefits plans, including provisions that:

Keeping our clients informed of changes like this is a top priority for the Holmes Murphy Compliance team. We’ve made our client update available to provide additional information on the impact of the OBBB on employee benefit plans. If you have any questions or want to dive deeper into a specific area of the bill, reach out to connect with our experts.

Big Bill Benefits Changes

The legislation’s direct impact on employee benefit plans focuses on the permanent extension of telehealth relief, expanded HSA contribution eligibility, and increased annual contribution limits for DCAPs.

Permanent Extension of Safe Harbor for Absence of Deductible for Telehealth Services (Sec. 71306)

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Treatment of Direct Primary Care Service Arrangements (Sec. 71308)

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Enhancement of the Dependent Care Assistance Program (Sec. 70404)

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More is More

Alongside the telehealth, HSA, and DCAP changes, the OBBB Act also offers additional provisions that employee benefits leaders can consider for their total benefits package.

Trump Accounts

Student Loans Educational Assistance Programs

Paid Family and Medical Leave Employer Credit Continuation

Beauty for Benefits So Far

Ultimately, these changes are beneficial for plan sponsors as they will now have more options available to consider when planning for 2026. Review our OBBB update to learn more about the legislation’s effect on benefits and stay tuned for our next episode of Healthy Politics where we’ll dive into these changes. As always, we will continue to provide updates as we receive additional guidance and information.

Please note that we are still reviewing the changes to Medicaid to determine the impact that they may have on group health plans. This overview is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice.