All Bronze Plans Now Eligible for Health Savings Accounts

Starting this year, all Bronze and Catastrophic health insurance plans can now be paired with Health Savings Accounts (HSAs), fundamentally changing how Long Island small businesses can structure their benefits packages. This expansion means employers who previously avoided high-deductible plans due to HSA restrictions now have more flexibility to reduce premium costs while still offering meaningful coverage.

What Changed in 2026

Previously, only specific high-deductible health plans qualified for HSA pairing. Now, according to Healthcare.gov, all Bronze and Catastrophic marketplace plans are HSA-eligible, giving small businesses two distinct cost-saving strategies:

• Bronze plans offer the lowest monthly premiums with higher deductibles, but still cover preventive care before the deductible kicks in. These plans remain eligible for premium tax credits, making them attractive for businesses looking to balance cost with coverage.
• Catastrophic plans provide three primary care visits during the deductible period and focus on protecting against major medical expenses. However, they don't qualify for premium tax credits and are primarily designed for healthy individuals with low healthcare utilization.

The Financial Impact for Small Businesses

For Nassau and Suffolk County employers with 10-50 employees, this change creates new opportunities to manage healthcare costs without sacrificing benefits quality. Bronze plans typically cost 15-25% less in monthly premiums compared to Silver plans, and when combined with HSA contributions, can provide employees with more take-home pay and tax advantages.

The HSA triple tax advantage—deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses—makes this combination particularly powerful for businesses looking to offer competitive benefits while controlling premium increases.

Understanding the Trade-offs

While lower premiums sound attractive, employers need to understand what they're asking employees to accept. Bronze plans typically have deductibles ranging from $7,000-$9,000 for individuals, meaning employees pay significantly more out-of-pocket before insurance coverage begins.

This is where proper benefits planning becomes critical. Employees who don't understand how high-deductible plans work—or don't maximize their HSA contributions—may face financial hardship when medical needs arise.

Making HSA Pairing Work

The success of Bronze-HSA combinations depends heavily on employee education and employer contribution strategy. Businesses that simply switch to Bronze plans without explaining the HSA benefits or helping employees budget for higher out-of-pocket costs often see decreased satisfaction and increased turnover.

Smart employers are using part of their premium savings to fund HSA contributions, either through direct employer contributions or increased salary that employees can contribute to their HSAs. This approach maintains the cost savings while giving employees the resources to handle higher deductibles.

Long Island Considerations

For professional service firms, medical practices, and accounting offices across Long Island, the Bronze-HSA strategy works best for younger, healthier employee populations who can benefit from lower premiums and tax-advantaged savings. Businesses with older workforces or employees with chronic conditions may find the higher out-of-pocket costs create retention challenges.

The key is matching the plan design to your specific workforce demographics and helping employees make informed decisions about their healthcare spending.

Implementation Strategy

Employers considering this option for their next renewal should start by analyzing current utilization patterns and employee feedback. The Bronze-HSA combination requires more employee engagement and financial planning than traditional lower-deductible plans.

Success depends on comprehensive enrollment education, HSA contribution strategies, and ongoing support to help employees navigate the higher-deductible environment. Without this support structure, cost savings can quickly turn into employee relations problems.

Rather than navigating these complex decisions alone, Benton Oakfield's Long Island expertise helps small businesses evaluate whether Bronze-HSA combinations fit their specific workforce and budget requirements. We handle the utilization analysis, employee education, and ongoing support that makes high-deductible strategies successful instead of problematic.

Compliance Note: Benefit plan rules and tax implications vary based on company size and location. This summary is for informational purposes only. Please contact your Benton Oakfield representative to review how these changes impact your specific plan documents.

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