If you have an Obamacare Bronze plan, have you considered opening an HSA account? Until a few years ago, this was just "someone else's story" for me.

The deductible is high, but you can't create an HSA. For Bronze enrollees, it was the most frustrating combination.

However, starting January 1, 2026, this will change. Thanks to a provision in the One Big Beautiful Bill Act, abbreviated as OBBBA, passed last July.

With open enrollment for 2027 starting on November 1, I want to summarize this before choosing a plan.

First, let's discuss why it wasn't allowed originally. To create an HSA, you must be enrolled in an HDHP, or High Deductible Health Plan, as defined by the IRS.

The problem is that many marketplace Bronze plans did not meet this criterion. Many were designed to cover co-pays for primary care visits before the deductible.

This design is good for consumers, but it technically disqualifies them from being considered HDHPs. It's ironic.

Now, Bronze plans sold on the marketplace and catastrophic plans will be recognized as HSA-compatible plans, regardless of whether they meet the general HDHP criteria. This means that having a co-pay before the deductible doesn't matter.

The IRS clarified the details in Notice 2026-5 issued in December 2025. Bronze plans purchased outside the marketplace will also be recognized if the same plan is sold in the marketplace.

However, Bronze plans offered through the SHOP program for small businesses do not qualify. If you enrolled through your company, be sure to check this part. Company group plans will still follow the previous general HDHP criteria.

So, how much can you contribute? The limit for 2026 is $4,400 for individual enrollment and $8,750 for family plans.

The numbers for 2027 have already been released. The IRS announced in Rev. Proc. 2026-24 at the end of May that the individual limit will be $4,500 and the family limit will be $9,000.

Those aged 55 and older can contribute an additional $1,000. This catch-up amount is not indexed to inflation, so it remains the same each year.

The benefit of an HSA is that it offers tax advantages three times: a deduction when you contribute, tax-free growth, and tax-free withdrawals for medical expenses.

Even if you contribute as an individual rather than through a company plan, it is deductible. You can handle this on your tax return using Form 8889, and you can receive the deduction without itemizing.

I see this as particularly welcome news for self-employed individuals or those working as 1099 contractors, as they often use marketplace Bronze plans.

There are two other changes that have occurred. One is telehealth.

The rule that allows you to receive remote care for free or at a low cost before meeting your deductible has now been made permanent. You no longer have to worry about it being extended each year.

The other is Direct Primary Care, abbreviated as DPC. This is a model where you pay a monthly fee for unlimited access to your primary care physician, but previously this would disqualify you from HSA eligibility.

Starting in 2026, if the monthly fee for DPC is $150 or less for individuals and $300 or less for families, it can be used alongside an HSA. You can also pay the fee with HSA funds.

However, this fee does not count towards the plan's deductible or out-of-pocket limit. Additionally, there are industry criticisms that the IRS interpretation is narrower than the intent of the law, so it's wise to directly ask if the DPC meets the conditions before enrolling.

So, is going with Bronze the only answer? I don't think so.

The tax benefits of an HSA are significant only for those who can afford to contribute to the account. The higher your tax rate, the greater the tax savings.

If you choose a high-deductible plan while struggling financially, unexpected hospital bills can outweigh the tax savings. Honestly, this aspect of the system design is a bit disappointing.

If you have a chronic condition or regularly take prescription medications, a Silver plan might be cheaper overall. This is especially true if you qualify for cost-sharing reductions due to low income.

If I were to choose, I would estimate my medical expenses for the year and compare that amount with the difference in Bronze premiums plus the HSA tax savings.

If I rarely go to the doctor and can save a little each month, I would likely choose the Bronze and HSA combination.

Since South Carolina uses HealthCare.gov, you must enroll by December 15 to be covered starting January 1.

Finally, the right plan can vary greatly depending on your health status and medications, so consult with your doctor or pharmacist, and also check with a tax professional regarding tax matters.

If you've been overlooking the HSA while using a Bronze plan, I encourage you to crunch the numbers this year.