From telehealth to student loan help, employee benefits are getting a refresh. And with new legislation taking effect in 2025 and 2026, brokers and employers alike have a lot to consider. Here’s a breakdown of some of the key changes that could affect how benefits are offered, used, and taxed in the coming years.

As of 1/1/2025, telehealth is no longer disqualifying for HDHP and HSA eligibility, and plans can continue offering telehealth as before under the Cares Act before this provision sunset on December 31, 2024. Plans can now offer low or no-cost telehealth visits before the deductible is met without affecting HSA contributions. Beginning in 2026, direct primary care fees up to $150/month for individuals or $300/month for families will also be HSA-qualified, provided they don’t include:

• General anesthesia
• Most prescription medications (excluding vaccines)
• Lab tests that are not part of routine primary care

Additional updates beginning in 2026 include:

1. Marketplace Plan Eligibility: Bronze and Catastrophic plans offered through the Health Insurance Marketplace will qualify as High-Deductible Health Plans (HDHPs).
2. HSA Compatibility: This change enables greater access to HSA-eligible plans for employees, particularly those utilizing Individual Coverage Health Reimbursement Arrangements (ICHRAs).
3. Student loan repayment benefits go permanent: Employers will be able to contribute up to $5,250 per year tax-free toward employees’ student loans, offering long-term support for financial wellness.
4. Higher Dependent Care limits: The Dependent Care Assistance Program (DCAP) limit will increase to $7,500 annually. While this is a welcome change for many families, employers should consider the potential impact on nondiscrimination testing.
5. Expanded paid leave tax credit: Employers that offer up to 12 weeks of paid family and medical leave may qualify for a 25% tax credit. The rules now include part-time employees and those with at least six months of service, even when leave is required by state law.
6. New savings accounts for children: Launching in July 2026, these long-term savings accounts will be available for children under age 18. Contributions can be made annually—up to $5,000—from parents, employers, or others, with funds intended for future qualified expenses such as education or a first-time home purchase.
   • A one-time $1,000 federal contribution will be provided for eligible children born between 2025 and 2028
   • Employers may contribute up to $2,500 per child on a tax-free basis (pending further guidance)

As employee benefits continue to shift, staying informed is more important than ever. These upcoming changes present opportunities—but also new compliance considerations—for employers trying to support their workforce while staying compliant.

Medcom is here to help you stay ahead with the tools and guidance you need to serve your clients with confidence.

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