🏛️ H.R. 1 Could Fix America's Broken Benefits System — But Only If Employers Are Ready

By Ted Ruiz, CFP® | Holistic Employee Benefits (www.HolisticEB.com)

⏳ 18 Minutes: That’s All the Time Most Employees Spend Choosing Benefits

In 2025, a survey by BenefitsPro found that the average American worker spends just 18 minutes selecting their benefits each year. That’s less than the time most spend ordering takeout.

Why is this happening?

• Too many plans are confusing and poorly explained

• No one walks employees through the options

• Enrollment portals are outdated or overwhelming

• HR departments are understaffed or overburdened

This confusion leads to:

• Employees picking the wrong plan (and paying too much out of pocket)

• Low participation in valuable voluntary benefits

• Families are facing unexpected expenses because of poor benefit choices

But now there’s hope — in the form of a landmark bill.

🧾 H.R. 1: A Game-Changer for Employee Benefits

In May 2025, the House Ways and Means Committee introduced H.R. 1 (SMITMO_017), unofficially dubbed the “One Big Beautiful Bill.” It represents one of the most sweeping attempts to reform and modernize employee benefits in over a decade.

🎯 What the Bill Aims to Fix:

• Make benefits more portable, personalized, and pre-tax

• Modernize outdated HSA/FSA/HRA rules

• Help small employers offer meaningful plans affordably

• Support families through paid leave, childcare credits, and education aid

• Address fitness, wellness, and student loan debt

🔑 What’s In the Bill — And Why It Matters

🏥 1. CHOICE HRAs (Individual Coverage HRAs)

• Shorter notice period: from 90 → 60 days

• Pre-tax employee contributions are now allowed for off-exchange coverage

• Small business tax credits: $100/month per covered employee in Year 1

• Compatible with COBRA continuation

• Expanded rollover and portability

• Broader plan compatibility, including catastrophic and short-term plans

✅ Impact: Small businesses can now confidently drop expensive group plans and reimburse employees tax-free for individual plans, while earning federal credits.

💸 2. Health Savings Accounts (HSAs) & Flexible Spending Accounts (FSAs)

• 60-day grace window to open an HSA after starting a high-deductible plan

• HSA eligibility extended to:

• Fitness reimbursement via HSA: $500/year individual, $1,000 family

• FSAs and HRAs can now roll into HSAs under certain structures

• Spouse FSA compatibility improved

✅ Impact: Employees have more time and flexibility to set up tax-advantaged accounts and use them to stay healthier, both physically and financially.

👨👩👧 Paid Leave and Childcare Support

• Expands employer tax credits for paid family and medical leave

• Enhances on-site childcare tax credits and eligibility

✅ Impact: More businesses can afford to offer leave during childbirth, adoption, or caregiving, and get rewarded for doing so.

🎓 Education & Student Loan Assistance

• $5,250/year tax-free tuition assistance now indexed for inflation

• Allows employers to reimburse student loans tax-free

✅ Impact: Early-career employees burdened by debt can now receive relief as part of their benefits package, giving employers a new recruiting edge.

💇 Tips and Service Industry Support

• Workers can now deduct tip income from taxes (2025–2028)

• Employers receive FICA credits for reported tips, even in the beauty industry

✅ Impact: More accurate tip reporting, better income protection for workers, and savings for small business owners.

🤖 How HolisticEB.com Turns Legislation Into Real-World Results

Even with great reforms, most employees will still be lost without guidance. That’s where Holistic Employee Benefits (www.HolisticEB.com) bridges the gap between policy and action.

Here’s how we help:

✅ 1. Smart, Simplified Benefits Education

We offer monthly communications, via email, video, or print, explaining one benefit at a time. Employees learn:

• How to use their HSA or FSA properly

• What’s included in accident, hospital, or disability coverage

• How to avoid out-of-pocket surprises

✅ 2. Custom Online Enrollment Pages

We build your business a custom benefits portal (e.g., www.holisticeb.com/yb) that includes:

• Videos explaining the benefits in plain English

• Easy click-to-enroll buttons

• Secure HR tools for new hire onboarding and termination

✅ 3. Offer Benefits for as Little as $0/Month

With creative plan design and tax strategies, we help businesses offer:

• Pet insurance (up to $25,000) at no cost to the employer

• Family estate planning (revocable trusts)

• Supplemental insurance (as low as $0.39/hour)

All of this is fully digital, with no additional HR workload.

📊 Quick Summary Table

Category H.R. 1 Changes HolisticEB.com Implementation CHOICE HRAs Pre-tax, shorter notice, tax credit Full setup + employee guidance HSAs & FSAs More access, longer windows, fitness included Monthly education + simplified claims Paid Leave & Childcare Better employer credits Recommend vendors + enrollment templates Education & Loans Indexed tuition aid + tax-free loan help Explainer flyers + benefit videos Tips & Payroll Tax Tip deductions + FICA credit Industry-specific support for service jobs

⚖️ Disclosure

This article summarizes House Bill H.R. 1 (SMITMO_017), which has passed the House Ways and Means Committee but is not yet law. The Senate is drafting its version, and final legislation may differ.

📞 Final Thought: 18 Minutes Isn’t Enough—But It Can Be a Start

The average employee only spends 18 minutes a year on benefits. Our goal at HolisticEB.com is to make sure that time is better spent, better supported, and better protected.

Want a demo of how our platform aligns with H.R. 1 and boosts employee retention, satisfaction, and education?

👉 Visit www.HolisticEB.com/yb or schedule a call with us today.