New HSA Eligibility for Bronze and Catastrophic Plans: What to Know for 2027

For self-employed workers and small-business owners, the change to health savings account eligibility could make a Bronze or Catastrophic marketplace plan more useful for managing out-of-pocket costs. Starting in 2026, enrollment in either plan type allows an individual to contribute to an HSA, even when the plan doesn’t meet the usual definition of a high-deductible health plan.

That matters to people choosing coverage without an employer benefits team to explain their options. Business owners and self-employed people make up roughly 28% of working-age marketplace enrollment, and many select Bronze coverage for its lower premium. More than seven million people are newly eligible under the change.

Who can use the expanded eligibility

Before the change, an HSA contribution generally required enrollment in a qualifying high-deductible health plan. Beginning in 2026, a person enrolled in a marketplace Bronze or Catastrophic plan can contribute even if that plan doesn’t meet the previous high-deductible criteria.

The pool of potential HSA users is growing. For 2026 coverage, nearly 9.2 million marketplace enrollees chose Bronze plans, close to 40% of enrollees and up from roughly 30% the year before. The source connects that shift with buyers moving toward the lowest-premium tier after enhanced premium subsidies expired. The eligibility change therefore reaches many people who may be facing a trade-off between lower monthly premiums and higher costs when they receive care.

During enrollment, plan details are expected to identify when HSAs are permitted. But insurers may not prominently explain the option, and exchange websites are still adding guidance. People buying coverage on their own may need to check the plan information and ask whether their selected coverage qualifies.

What an HSA can and can’t do

An HSA doesn’t pay health insurance premiums. That limit matters for Bronze enrollees whose premiums rose after the enhanced subsidies ended: the account won’t directly offset the monthly price of coverage. Its role is to help with eligible healthcare expenses paid out of pocket.

Bronze plans generally pair lower premiums with higher deductibles, so members may have more costs to cover before the plan pays for care. An HSA lets eligible savers set money aside for those expenses with potential tax advantages. In most states, contributions aren’t taxed; investment growth or bank interest in the account isn’t taxed; and withdrawals used for qualified healthcare expenses aren’t taxed.

For example, someone who contributes $1,000 from income that would otherwise be taxed can use the full $1,000 for eligible care. Paying a $1,000 bill from ordinary, taxable income may require earning $1,100 or $1,200, depending on the person’s tax rate. For a self-employed person, the difference can reduce the amount of business income needed to cover healthcare costs.

Unused HSA funds carry forward from year to year. There’s no “use it or lose it” deadline, so contributions can accumulate and any tax-free growth can build over time. That feature makes an HSA different from an account that must be spent within a set period.

Contributions, eligible expenses and records

For 2027, the maximum contribution is $4,500 for individual coverage and $9,000 for family coverage. People age 55 or older can contribute an additional $1,000. An eligible person can open an account with a qualified custodian, typically a bank.

People who contribute on their own report those contributions when filing their taxes. The contribution can reduce taxable income, which may lower the amount owed or increase a refund. Account rules and personal circumstances affect the result, so savers should keep contribution records and confirm how their own tax filing applies.

HSA funds can cover qualified medical expenses for the account holder and covered dependents. The source identifies telehealth services and, newly, fees for direct primary care arrangements as eligible expenses, subject to a monthly limit for the latter.

Keep receipts and other records for eligible expenses. An account holder can reimburse themselves years after paying a qualified bill, leaving the money in the account to grow in the meantime. That approach requires retaining documentation to support the later reimbursement.

Making the account part of a longer-term plan

With regular contributions, an HSA balance may eventually exceed the plan’s annual out-of-pocket maximum. At that point, an account holder could consider investing part of the balance for potential growth beyond bank interest. Investment options, minimums and fees depend on the custodian, and the process resembles choosing investments within a 401(k) plan.

For a business owner or self-employed professional without a workplace retirement plan’s full set of savings features, an HSA can provide another tax-advantaged account tied to healthcare spending. Medical costs often rise later in life, making the ability to carry a balance forward particularly relevant.

Marketplace open enrollment for 2027 coverage runs from November 1 through December 15 in most states, a shorter period than in past years. The new eligibility may help with expenses that follow the premium, but it won’t make premiums more affordable by itself. As people compare plans, checking HSA eligibility alongside premiums, deductibles and other out-of-pocket costs can clarify how each option fits their budget.