Recent legislative changes will make Health Savings Accounts (HSAs) accessible to millions more Americans. These changes, highlighted in in the ABA Banking Journal, will expand eligibility for HSAs to consumers with bronze and catastrophic Affordable Care Act Marketplace plans beginning January 1, 2026.
What’s Changing with HSA Eligibility
Currently, only individuals enrolled in high-deductible health plans (HDHPs) can open and contribute to an HSA. The proposed expansion would allow more people—including those with other types of insurance coverage—to qualify. This means that individuals who were previously excluded, such as some Medicare participants or employees with flexible health coverage, could soon be eligible to open an account.
The goal of this expansion is to make HSAs more inclusive and to help more Americans take control of their healthcare spending while building long-term financial security.
Why HSAs Are a Smart Financial Tool
HSAs are one of the most powerful savings options available because they combine flexibility with significant tax advantages. Key benefits include:
- Triple tax advantage: Contributions are tax-deductible, earnings are tax-free, and withdrawals for qualified medical expenses are tax-free.1
- Long-term savings potential: Unused funds roll over year after year and can be invested for future healthcare or retirement needs.
- Control and flexibility: Account holders decide how and when to use their funds for eligible medical expenses.
Why Choose MVSB for an HSA
As a local, community-focused bank, MVSB offers the personal service and trusted guidance that make managing an HSA easy and stress-free. Choosing MVSB for an HSA means:
- Local expertise: Knowledgeable bankers who understand community needs and can help customers choose the right HSA options.
- Trusted support: A commitment to transparency, security, and personalized service.
- Convenient access: Easy online account management and debit card access combined with friendly, in-person assistance at local branches.
MVSB’s team is dedicated to helping individuals and families make the most of their HSA—whether saving for immediate healthcare expenses or planning for the future.
As HSA expansion moves forward, now is the perfect time to learn how these accounts can fit into a broader financial strategy. Understanding eligibility, contribution limits, and investment options early can help maximize the benefits once the new rules take effect.
MVSB is ready to help customers navigate these updates and take advantage of the expanded opportunities to save. Learn more at mvsb.com/hsa.
1 Consult your tax advisor for more information on how these benefits may apply to you.
