The U.S. Department of Health and Human Services (HHS) recently announced new hardship exemption guidance designed to expand access to more affordable catastrophic coverage starting November 1, 2025. Catastrophic plans — traditionally limited to individuals under age 30 or those with hardship exemptions — offer lower monthly premiums, protection from high medical costs, and coverage for essential preventive services. Now, more consumers facing financial need will qualify for these plans.

At the same time, new provisions under the One Big Beautiful Bill Act (OBBB) will further improve affordability and financial security by expanding health savings account (HSA) eligibility. Beginning January 1, 2026, both Bronze and Catastrophic Marketplace plans will automatically qualify as high-deductible health plans (HDHPs), making millions of additional Americans eligible to open and contribute to HSAs. Consumers will be able to select these qualifying plans as early as the upcoming open enrollment period, which begins November 1.

According to the Council of Economic Advisers, these changes could make up to 3 million more Americans HSA-eligible, providing access to triple tax-advantaged accounts that help consumers save for current and future medical expenses. Together, these reforms strengthen consumer choice, lower barriers to affordable coverage, and give individuals powerful tools to manage their healthcare costs today while planning for tomorrow.