Signed into law on July 4, 2025, the “One Big Beautiful Bill Act” delivers sweeping changes aimed at enhancing employer-sponsored health and welfare benefits. This landmark legislation includes several provisions that are particularly favorable to employers and employees, making many pandemic-era measures permanent and introducing new tax-advantaged options.
Among the most significant changes is the permanent reinstatement of telehealth relief for High-Deductible Health Plans (HDHPs). Effective retroactively to January 1, 2025, HDHPs can now permanently cover telehealth and remote care services before deductibles are met, without jeopardizing employees’ Health Savings Account (HSA) eligibility. This also applies to standalone telehealth services outside of the HDHP.
The law further expands HSA eligibility to individuals enrolled in Direct Primary Care Service Arrangements (DPCSAs) as long as monthly fees remain within specified limits and services are limited to primary care. HSA funds can now be used to pay for qualifying DPCSA services.
Additional highlights include:
- Permanent tax exclusion for student loan repayment benefits up to $5,250 annually, with future amounts indexed for inflation.
- Permanent and enhanced Paid Family and Medical Leave (PFML) tax credit, now available nationwide with expanded eligibility and the ability to apply to insurance premiums.
- Increased limits on Dependent Care Assistance Programs, boosting the exclusion to $7,500 annually ($3,750 for married individuals filing separately).
- Expanded dependent care and employer-provided childcare tax credits, with higher maximum credit percentages and benefit caps.
- Partially refundable adoption assistance tax credit, providing up to $5,000 starting in 2025.
- Permanent elimination of the tax-free bicycle commuting benefit.
The law also introduces new “Trump accounts” for children under age 18, allowing up to $5,000 in annual contributions. A pilot program will grant a $1,000 government contribution for each newborn between 2025 and 2028.
Except for the telehealth and adoption credit provisions, most changes take effect January 1, 2026.