Keeping HR pros updated with important compliance, benefits, and human resources information.
The Impact of the OBBBA
The One Big Beautiful Bill Act (OBBBA), a sweeping tax and spending bill signed by President Donald Trump, includes a broad set of changes for employee benefit plans, most of which take effect in 2026. Consider the following changes:
- Expanded access to health savings accounts (HSAs)—Effective Jan. 1, 2026, HSA eligibility will allow individuals with direct primary care (DPC) arrangements to make HSA contributions if their monthly fees are $150 or less ($300 or less for family coverage). Also, DPC fees will be treated as medical care expenses that can be paid using HSA funds.
- Increased limits and tax credits for dependent care flexible spending accounts (FSAs)—Effective Jan. 1, 2026, the maximum annual limit for dependent care FSAs increases to $7,500 for single individuals and married couples filing jointly and $3,750 for married individuals filing separately (up from $5,000 and $2,500, respectively).
- A new tax-advantaged account (“Trump Account”) for children—Effective in 2026, Trump Accounts are a tax-advantaged savings account for children under age 18. Annual contributions are limited to $5,000 per child, and employers may contribute up to $2,500 per year to the account of an employee or an employee’s dependent.
Additionally, as it relates to the Trump administration, the enhanced Affordable Care Act subsidies, which were passed through the Inflation Reduction Act, were not renewed when they were set to expire at the end of 2025. Nonrenewal of these enhanced subsidies could lead to premium increases and decreased enrollment. Potential changes could also occur to Medicare and Medicaid, which may influence employer decisions regarding retiree health benefits and supplemental coverage options for enrolled individuals.
As always, we are here to help you navigate these changes. Contact us at compliance@nulty.com.
HIPAA Notice of Privacy Practices Update Required by Feb. 16, 2026
Health plans and health care providers that create or maintain substance use disorder (SUD) records must update their HIPAA Notice of Privacy Practices (NPP) by February 16, 2026. The updates reflect recent changes to the HIPAA Privacy Rule that align HIPAA with stricter federal confidentiality protections for SUD records under 42 CFR Part 2.
Updated NPPs must clearly explain the enhanced privacy protections for SUD records, including limits on use and disclosure (even for treatment, payment, or operations without written authorization), restrictions on use in legal proceedings, and when stricter federal or state laws apply. If SUD information is used for fundraising, individuals must be given a clear opt-out opportunity.
While these updates were issued alongside changes related to reproductive health information, those provisions are not currently being enforced and do not require NPP updates at this time.
Covered Entities should review whether they maintain SUD records, update NPP language as needed, and confirm that privacy practices and delivery methods align with applicable requirements before the deadline.
Question of the Month
Q. A California company has Kaiser and UHC policies and subject to COBRA. Separately, they opened a Kaiser Hawaii policy for their sole employee in Hawaii who has since left the company. There are no plans to hire another employee in Hawaii. Is the company required to keep the Hawaii policy active to accommodate the employee who needs to be offered COBRA?
A.The employer is not required to keep the Hawaii Kaiser policy in effect if the employer no longer has any active Hawaii employees. The employee would be entitled to COBRA under the Kaiser CA and UHC policies.
Answers to the Question of the Month are provided by Kutak Rock LLP. Kutak Rock provides general compliance guidance through the UBA Compliance Help Desk, which does not constitute legal advice or create an attorney-client relationship. Please consult your legal advisor for specific legal advice.
