Health savings accounts (HSAs) may get a major glow-up in 2026, thanks to new federal rules set to roll out next year, per CNBC. These accounts let people set aside pre-tax dollars for qualified medical expenses—everything from prescriptions to copays—helping lower overall health-care costs.
The changes stem from updates baked into last summer’s federal budget reconciliation law, which aimed to make HSAs easier to qualify for and more appealing to use. Early projections suggest the overhaul could meaningfully expand who actually signs up.
Investment research company Morningstar estimates the new rules could bring as many as four million first-time HSA users into the system. Today, roughly 40 million accounts already exist, holding nearly $159 billion, according to investment services firm Devenir.
Some industry leaders say the revamped structure could supercharge the value of these accounts. James Gelfand, chief executive of benefits lobbying group ERISA Industry Committee, told The New York Times. that HSAs “are the very best investment vehicle that exists.”
Other experts agree that these accounts offer a rare combination of perks:
- Contributions reduce taxable income.
- Investments grow tax-free.
- Withdrawals for qualified medical expenses are also tax-free.
- Money rolls over annually and follows you even if you switch jobs or retire.
This “triple tax advantage” is one reason financial planners increasingly recommend HSAs as a long-term savings tool—especially for younger workers facing rising medical costs.
Despite the benefits, HSAs are only available to people enrolled in qualifying high-deductible health plans. Employer-linked accounts remain the most common entry point.
But the eligibility bar isn’t low. Starting in 2026, qualifying plans must carry minimum deductibles of $1,700 for individuals and $3,400 for families. And while these accounts can reduce long-term spending, critics note that high-deductible plans still shift more upfront costs onto patients.
Former Consumer Financial Protection Bureau director Rohit Chopra also warns that consumers should look out for account-related fees, which can quietly reduce the value of HSA savings over time.
If the upcoming regulations work as intended, HSAs could become far more popular—especially among younger users looking for tax-advantaged ways to manage spiraling health-care costs. And for many, these accounts are evolving from a niche medical tool into a legit part of long-term financial strategy.
