Health Savings Accounts, used to help manage medical costs and lower taxable income, are available to more people in 2026.

Increases in health insurance premiums have business owners seeking every way possible to make their dollars go further. One option, Health Savings Accounts (HSAs) will be available to more people than ever in 2026.

What’s an HSA?

An HSA is a designated savings account funded with the account holder’s pre-tax income. The account is set up with an administrator who may be a health insurance provider, investment services provider or other third party.

The HSA owner can make withdrawals to pay for any qualified medical expense using a debit card linked to account or by filing for reimbursement from the account administrator.

Unlike an FSA, unused HSA funds can be carried over to the next year.

HSAs provide tax-free growth

Another advantage to HSAs is that they allow the money to be invested and there’s no tax on gains. Many HSA administrators require a minimum balance amount, often $1,000, before they permit investing.

What expenses are eligible for HSA spending?

HSA funds are frequently used for deductibles, copayments and coinsurance. Certain over-the-counter products and home improvements can also be paid out of an HSA account. For a comprehensive list of eligible HSA expenses, check out IRS Publication 502.

One thing to note is that HSA funds cannot be used for health insurance premiums.

What’s new in 2026

Previously, only people with high-deductible health plans that specifically included an HSA option could take advantage of these accounts. However, starting in 2026, anyone with a bronze health insurance plan or catastrophic health plan is eligible.

How much can be saved in an HSA?

There’s no minimum deposit amount and you don’t have commit to making deposits at a certain level. However, there are limits on the maximum you may deposit in an HSA.

Here are the limits for maximum HSA contributions in 2026:

Individual                    $4,400

Family                         $8,750

Age 55+ Catch-up       An additional $1,000

Choosing health insurance requires consideration of multiple factors, including access to an HSA. For more advice, look to HealthCare.gov’s How To Pick an Insurance Plan.

 

Federally insured by NCUA.