Health Savings Accounts (HSAs) have long been one of the most underutilized—but powerful—tax planning tools available.
And thanks to the 2025 tax law (yes, the “One Big Beautiful Bill”), HSAs just became even more appealing. These quiet upgrades expand what you can use your HSA for, and they may open the door for more people to take advantage of this triple-tax-advantaged strategy.
Let’s take a look at what’s new.
Why HSAs Matter (and Why Savvy Clients Use Them)
An HSA offers three tax benefits in one:
- Tax deduction for contributions
- Tax-free growth inside the account
- Tax-free withdrawals for qualified medical expenses
If you qualify for an HSA—and use it strategically—it can be a great way to lower your tax bill and set aside money for healthcare needs.
What’s New for HSAs in 2025
The new law introduced several updates that make HSAs even more versatile.
1. Concierge Medical Services Are Now HSA-Eligible
You can now use your HSA to pay for Direct Primary Care (also known as concierge medicine). That includes monthly “membership-style” subscriptions with a doctor or clinic.
If you’ve ever paid out-of-pocket for this type of care, this is a valuable shift—you can now cover those costs with pre-tax dollars.
2. Telehealth Services Count Toward HSA Use
Virtual visits—including telehealth checkups, therapy sessions, and chronic care management—are now HSA-eligible.
This brings flexibility for anyone who receives medical care remotely, which has become increasingly common.
3. More Insurance Plans Now Qualify for HSA Use
One of the previous hurdles with HSAs was that not all high-deductible health plans (HDHPs) qualified for HSA use.
Under the new law, the definition has been expanded. That means some plans that were previously disqualified may now be eligible. You’ll still want to verify with your provider before opening or funding an HSA—but this opens the door for more people to participate.
Is an HSA Right for You?
If you’re already using an HSA, these changes may allow you to do even more with your account. And if you’ve never considered one before, this could be the right time to take a closer look.
As always, the best results come from thoughtful planning—not just checking a box during open enrollment.
Email me at kim@kimberlybagleycpa.com or book a call with me here if you’d like help evaluating how an HSA could fit into your 2025 tax strategy or overall financial plan.