Tax-free saving for medical expenses just got easier

Saving for medical expenses in a tax-free plan just got easier

Shopping for a health plan that you can pair with a tax-free medical savings plan will look a little different for 2026, now that nearly all Bronze plans are eligible for Health Savings Accounts (HSA).

Effective Jan. 1, federal HSA rules expand to qualify all Individual Bronze and Catastrophic plans as high-deductible health plans (HDHPs)—provided they are available on CoverME.gov, Maine’s ACA health insurance marketplace.

The new rules, a part of the federal budget reconciliation bill passed in July, feature two major changes for Bronze plans:

All Marketplace Bronze plans are now HSA-friendly. That means you have many more options to save money for doctor visits, medicine and other health costs—both now and in the future. You won’t pay taxes on money you contribute, or on interest, investment earnings, and withdrawals (provided you spend the money on qualified medical expenses). Many people even benefit from investing their HSA money in an index fund or other investment vehicle to grow their savings even more.

You can save money in an HSA even if your Bronze plan isn’t a traditional HSA and pays some benefits before you meet your deductible. Previously, HSA-qualified plans could not cover doctor visits or prescriptions before you met your deductible. That’s still true for traditional HSA plans but is changing for all Bronze plans sold through the CoverME.gov marketplace.

At Community Health Options, you can spot these plans because they have “HSA” or “HSA Plus” in the plan name. The new rules also don’t apply to Bronze plans sold off-marketplace or through employers.

How you can use an HSA

Whether you buy a plan on your own, or you have an HSA option at work, these accounts let you set aside money on a pre-tax basis to pay for most medical expenses. You can use this money for copayments, coinsurance, and other out-of-pocket costs, which lowers your overall health care spending because you’re saving on taxes. You can’t use HSA funds to pay premiums, but the new rules now let you pay membership fees at a direct primary care practice—a rule that applies to all HSA plans, whether you buy the plan on your own on get it from work.

Your money grows tax-free

Unlike a Flexible Spending Account (FSA), which is usually offered through an employer and has a “use-it-or-lose-it” rule each year, an HSA is yours to keep, save and invest—even if your employer offers it— giving you more control over how you pay for healthcare now and in the future. You can contribute to an HSA on your own or through payroll, and the money grows tax-free until you need it. HSAs can be used well into retirement, giving you more long-term flexibility. Any unused money collects interest or can be invested in the stock market, and when you turn 65, you can use the money for anything you want. Keep in mind that any money used for non-medical expenses counts as taxable income.

The Internal Revenue Service sets annual limits on how much you can contribute to your HSA. For 2026, you can save up to $4,400 for individual coverage or $8,750 for family coverage. If you’re 55 or older, you can add an extra $1,000 in catch-up contributions.

When comparing plans, remember: HSA-qualified family plans require a minimum embedded deductible—the amount each family member must pay before the plan starts covering their care. This rule still applies for traditional HSA-qualified plans, but not for Marketplace Bronze plans covered by the new rules.

Community Health Options can help you choose a plan, or you can choose a plan through your trusted  broker or CoverME.gov. Then you can work with your bank, broker or financial advisor to set up your HSA account.

Looking for a new plan or have questions about getting a plan eligible for an HSA? Connect with a Community Health Options advisor to explore your options by scheduling a call here. If you have questions about your current plan and coverage, please call Member Services at (855) 624-6463.