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A summary of the articles included in the October 2025 edition:

  • White House Releases Report Detailing Health Savings Account Expansion
  • HSA Account Balances Up for Third Year
  • Flex Raises $15M to Unlock $150B in Untapped Pre-Tax Spending for Leading Health & Wellness Retailers
  • HSA/HRA Policy Momentum Slows After OBBBA
  • UMB Healthcare Services Completes Acquisition of Health Savings Account Portfolio from Old National Bank


White House Releases Report Detailing Health Savings Account Expansion

A tax package recently passed by Congress and a recent policy change together will make an additional 10 million Americans eligible to open and contribute to health savings accounts, according to a new report by the White House Council of Economic Advisers.

The One Bill Beautiful Bill Act includes a provision that reclassifies bronze and catastrophic Affordable Care Act Marketplace plans as qualifying health plans for HSAs, effective Jan. 1, 2026. Approximately 30% of marketplace enrollees selected bronze plans during the 2025 open enrollment report, or approximately 7.27 million people, according to the report. A much smaller pool of 54,000 people selected catastrophic plans, for a total of roughly 7.3 million.

In addition, the Centers for Medicare and Medicaid Services recently announced changes to the catastrophic enrollment processes that will further expand the number of Americans eligible for HSAs, the report said.

HSA Account Balances Up for Third Year

The Plan Sponsor Council of America’s (PSCA) 2025 HSA Survey shows employees are increasing contributions to their health savings accounts, and more are investing those assets when given the opportunity, leading to an increase in average account balances for the third consecutive year.

PSCA’s seventh annual HSA survey, was conducted in the summer of 2025 and reflects responses from nearly 600 employers with an HSA program. The survey tracks employee and employer HSA trends from 2024.

The survey shows that 20 percent of participants now invest their HSA savings, up from 18 percent the prior year. Also, two-thirds of employers now offer investments, a 12 percent increase over a two-year period.

Flex Raises $15M to Unlock $150B in Untapped Pre-Tax Spending for Leading Health & Wellness Retailers

Flex, a platform that enables health and wellness brands to accept HSA and FSA payments, has raised $15 million in Series A funding, bringing its total capital raised to $18 million. The round was led by First Round and Core VC, with participation from Cameron Ventures, Rethink Impact, Y Combinator, and Liquid2. This investment will accelerate Flex’s push into the enterprise market, empowering more retailers to capture a share of the $150B+ pre-tax spending opportunity.

“We’re building the financial infrastructure that connects people’s health benefits to the products and services that genuinely support their everyday wellbeing,” said Sam O’Keefe, CEO of Flex. “This funding allows us to partner with the most influential health and wellness retailers, making it simple for millions of Americans to put their healthcare dollars to work. Health today extends far beyond the doctor’s office—it’s in our homes, our movement, and the daily choices we make. Our goal is to ensure the brands empowering healthier living are just as seamless to buy from as any other retailer.

HSA/HRA Policy Momentum Slows After OBBBA

The chances of passing the health account provisions cut out of the One Big Beautiful Bill Act in the next few months are probably low.

Rep. Blake Moore, R-Utah, a strong supporter of health savings accounts, health reimbursement arrangements and related health accounts, gave that assessment recently during a policy forum organized by the EBRI.

The health account topic has traditionally been one where Democrats and Republicans have been able to find common ground. Democrats and Republicans often team up to introduce bills that could make the HSA and HRA programs simpler and more generous.

But “there is significant opposition to HSAs from the Democratic upper dais” of the House Ways and Means Committee, Moore said.

Some House Ways and Means Democrats with fewer years in Congress “do like HSAs,” Moore said. “They’re willing to vote against their caucus or their committee leadership, but it just doesn’t bode well for passage.”

UMB Healthcare Services Completes Acquisition of Health Savings Account Portfolio from Old National Bank

UMB Financial Corporation announced that it has completed the purchase of more than 8,000 Health Savings Accounts (HSAs) and approximately $32.5 million in related deposits from Old National Bank associated with its recent acquisition of Bremer Bank.

UMB Healthcare Services provides solutions for 5.2 million healthcare spending account cards and services nearly 1.6 million HSAs, totaling more than $4.6 billion in HSA assets and deposits, as of June 30, 2025. Total purchase volume on UMB’s healthcare debit cards exceeded $11.9 billion for the calendar year 2024.