On July 1, 2025, the Senate narrowly approved its amended version of the One Big Beautiful Bill Act (OBBBA), clearing the way for a vote in the House of Representatives.
Significantly, for group health and welfare plan sponsors, the Senate measure includes several noteworthy provisions. Specifically, the bill includes a permanent extension of an expired provision giving employers the flexibility to offer telehealth services pre-deductible to employees with an HSA and HDHP, with a retroactive effective date of January 1, 2025. (As explained in our January 14, 2025, article, the prior telehealth relief, which began during the COVID-19 pandemic, was no longer available for plan years beginning in 2025.)
In addition, the Senate bill provides that direct primary care arrangements with monthly premiums of $150 or less will no longer be disqualifying coverage for purposes of HDHPs coupled with HSAs. The bill also increases the federal income tax exclusion for dependent care assistance for taxable years beginning after December 31, 2025.
As with the House version, the Senate amendment retains the current income tax exclusions and deductions for employer-provided health coverage.
The Senate bill is currently under consideration in the House, which may accept the revised bill or make additional changes that would require another Senate vote. While the inclusion of the employee benefits provisions is encouraging, these may not be part of any final legislation sent to the president for signature. We will be monitoring closely and reporting any developments in Compliance Corner.