The federal “One Big Beautiful Bill Act” (OBBB) has made big waves in the employee benefits industry, rewriting many of the rules in the space and increasing demands on benefits advisors and employers as they scramble to keep up with the changes. We recently sat down with Holmes Murphy’s Nick Karls, Compliance Director Employee Benefits, and Den Bishop, Senior Advisor, Employee Benefits, to discuss some of the implications in several key areas.
1. How does the permanent telehealth safe harbor impact the way benefit advisors should structure HDHP offerings for clients? How should benefit advisors guide employers in updating their HDHP offerings with the permanent safe harbor in place?
The permanent extension allows advisors to confidently recommend bundling telehealth services with HDHPs without disqualifying employees from making HSA contributions. Benefit advisors can guide clients on whether to opt for first-dollar telehealth coverage, especially for managing chronic conditions, and clarify that this option is not mandatory. This change presents strategic opportunities for employers to modernize their offerings and enhance access while maintaining HSA eligibility.
Advisors working with employers that adopt the telehealth expansion should ensure that plan document summary plan descriptions and employee communications, such as open enrollment materials, reflect this change and help employers weigh the value of bundling virtual care — particularly for chronic condition management — into their HDHP offerings during open enrollment.
2. What do advisors need to consider when helping clients integrate direct primary care arrangements into HSA-compatible plans?
Beginning in 2026, employers can offer direct primary care without affecting HSA eligibility, if monthly fees remain within the specified limits. Advisors should monitor rulemaking closely, as only primary care services are eligible under this provision, and there is ambiguity around provisions such as what is encompassed in the prohibition of providing prescription drugs. Advisors should also help clients evaluate provider arrangements, communicate clearly with employees, and plan for 2026 open enrollment education, should it be determined that a direct primary care arrangement is suitable for the employer.
3. What are the compliance risks associated with the new $7,500 DCAP limit that advisors should flag for clients?
While the increased contribution limit enhances tax-advantaged savings for dependent care, advisors should caution clients that nondiscrimination testing issues may persist or worsen. Advisors should help employers analyze workforce demographics and DCAP participation rates before raising the limit to ensure compliance and avoid tax consequences for highly compensated employees. Advisors should also discuss the timing and cadence of nondiscrimination testing for the DCAP plan to identify nondiscrimination issues earlier in the year, should any arise, to allow for more time to make adjustments.
4. What documentation updates should employers consider considering these new requirements?
With several benefit-related provisions going into effect in 2025 and 2026, advisors should work with clients to review and update summary plan descriptions (SPDs), cafeteria plans, enrollment guides and plan documents. This includes incorporating updates for telehealth coverage under HDHPs, new DCAP limits, direct primary care eligibility, and the addition of Trump Accounts, where applicable. Proactive documentation updates will support compliance and reinforce employee trust during open enrollment.
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