One Big Beautiful Bill & HSA Changes for 2026

The "One Big Beautiful Bill" — the sweeping reconciliation legislation moving through Congress in 2025-2026 — includes significant expansions to Health Savings Accounts that could change how you use your HSA for fitness, wellness, and everyday health expenses. Whether you already have an HSA or are considering one, these proposed changes make HSAs more valuable than ever. Here's what's in the bill and what it means for you.

What's in the One Big Beautiful Bill for HSAs?

The legislation includes several HSA-related provisions that expand eligibility, increase flexibility, and broaden what counts as a qualified expense:

Expanded HSA Eligibility

The bill proposes loosening the strict HDHP-only requirement for HSA eligibility. Currently, you can only contribute to an HSA if your health plan meets specific high-deductible thresholds. The proposed changes would:

Allow HSA contributions for people with certain non-HDHP coverage arrangements
Expand compatibility with direct primary care (DPC) and health sharing ministries
Permit HSA eligibility alongside more types of supplemental insurance

This would significantly increase the number of Americans who can open and contribute to an HSA.

Fitness and Wellness as Qualified Expenses

Perhaps the most exciting provision for wellness-focused HSA users: the bill includes language that would make certain fitness and wellness expenses qualified HSA expenses, potentially without requiring a Letter of Medical Necessity. This could include:

Gym memberships — potentially HSA eligible without an LMN
Fitness programs — structured exercise programs and classes
Physical activity equipment — home gym equipment for personal use
Wellness programs — certain preventive health programs

If enacted, this would be a seismic shift in HSA usage. Currently, these expenses require an LMN. Making them automatically eligible would simplify the process for millions of Americans.

Higher Contribution Limits

The bill proposes increasing HSA contribution limits beyond the standard inflation adjustments. While specific numbers may change through the legislative process, the direction is clear: more room to save tax-free for health expenses.

Spousal Catch-Up Contributions

Currently, spouses 55+ must each have their own HSA to make catch-up contributions. The bill would allow both spouses' catch-up contributions to go into a single family HSA, simplifying administration.

What This Means for Your 2026 HSA Strategy

If You Already Have an HSA

The proposed changes make your HSA more valuable. Potential strategies:

Max out contributions now. Even if the bill hasn't fully passed, the current 2026 limits ($4,400 individual, $8,750 family) are already excellent.

Start tracking fitness expenses. If gym memberships become automatically eligible, you'll want receipts ready for reimbursement. Hammock can track these automatically.

Get LMNs now anyway. Even if the law changes, having an LMN gives you coverage under current rules. If the new rules are more favorable, great — but you're protected either way.

Consider expanding wellness spending. If more categories become eligible, you may want to increase your HSA contribution to cover them.

If You Don't Have an HSA

Now is the time to open one. The One Big Beautiful Bill makes HSAs more accessible and more valuable:

Check if you qualify under current rules (HDHP required)

Watch for expanded eligibility if the bill passes

Open an HSA — Hammock offers a free HSA account

Start contributing to take advantage of the triple tax benefit

How the Bill Affects Specific HSA Categories

Gym Memberships and Fitness

Current: Requires LMN. Proposed: Potentially eligible without LMN. See our 2026 gym membership HSA rules guide for the latest.

Supplements and Nutrition

The bill's language on "wellness" is broad. It could extend to nutritional supplements, though specifics will depend on final language and IRS guidance. Currently, supplements require an LMN.

Wellness Services

Services like cryotherapy, float therapy, and red light therapy could potentially fall under expanded wellness provisions, though this isn't guaranteed.

Mental Health

Therapy and counseling are already automatically HSA eligible. The bill reinforces mental health parity and may expand digital mental health tool eligibility (like Calm and Headspace).

Timeline: When Do These Changes Take Effect?

Legislative timelines are inherently uncertain, but here's the general trajectory:

2025: Bill introduced and debated
2025-2026: Committee markups, amendments, votes
2026: If enacted, some provisions may take effect immediately; others may have delayed implementation
2027+: Full implementation of all provisions

The fitness expense provisions, in particular, may require IRS rulemaking to define exactly what qualifies, which could add months to the timeline.

What to Do Right Now

Regardless of whether the One Big Beautiful Bill passes in its current form:

Open an HSA if you don't have one. The existing benefits are already exceptional.

Max out your 2026 contributions. $4,400 individual, $8,750 family.

Get LMNs for current wellness expenses. Don't wait for the law to change — get coverage now.

Track everything. Keep receipts for all health and wellness expenses. If the rules expand, you may be able to reimburse retroactively for expenses in the current year.

How Hammock Helps

Hammock is positioned to help you take advantage of whatever HSA rules emerge from the One Big Beautiful Bill. Hammock already tracks HSA-eligible expenses across your spending and provides LMNs for wellness expenses that need documentation under current rules.

As the rules evolve, Hammock will adapt — potentially making it even easier to cover gym memberships, supplements, and wellness services with your HSA. Hammock Premium includes unlimited LMNs today, and if the bill eliminates the LMN requirement for certain expenses, Hammock's automatic tracking will ensure you capture every newly eligible expense.

The Bottom Line

The One Big Beautiful Bill represents a potential sea change for HSA users, expanding eligibility, increasing limits, and potentially making fitness and wellness expenses automatically HSA eligible. While the final legislation may differ from initial proposals, the direction is clear: HSAs are becoming more valuable. Position yourself now by opening an HSA, maxing out contributions, and tracking your wellness spending. Whether the bill passes as proposed or not, your HSA is one of the smartest financial tools available.