3 Things Benefits Leaders Should Know About the ‘Big Beautiful Bill’

The One Big Beautiful Bill Act (often referred to as simply the ‘Big Beautiful Bill’) has officially been signed into law, introducing major policy changes that will impact everything from employee take-home pay to public health coverage access. While the headlines focus on the political implications, benefits leaders have a more pressing concern: what this means for your people—and your strategy moving forward.

Here are three key takeaways to help you navigate what’s next.

Tax-Free Tips and Overtime Will Shift How Employees View Compensation

The new law eliminates federal income tax on tips and overtime pay, significantly boosting take-home earnings for many hourly and shift-based employees. This change will influence how employees assess their total compensation and may affect benefit plan participation and financial wellness behaviors.

What this means for you:

• Update your total rewards messaging to reflect changes in take-home pay.
• Anticipate increased questions during onboarding and open enrollment.
• Evaluate how these changes may influence participation in voluntary benefits and savings programs.

Medicaid Cuts May Increase Demand for Employer Coverage

Substantial cuts to Medicaid are expected to result in millions of Americans losing access to public coverage over the coming years. As a result, more employees and their dependents may turn to employer-sponsored benefits to meet their healthcare needs.

What this means for you:

• Prepare for potential shifts in enrollment volumes—particularly among part-time, lower-wage, or previously uncovered populations.
• Ensure your communications clearly outline eligibility, plan options, and available support resources.
• Consider how your plan design and contribution strategies support newly enrolled or financially vulnerable employees.

Clear, Personalized Guidance Will Be More Essential Than Ever

With new tax rules and reduced access to public benefits, employees will need more support navigating their options. The ability to offer clear, relevant, and personalized benefits guidance will be critical in helping your workforce make informed decisions.

What this means for you:

• Deliver personalized benefits education and decision support across channels.
• Align messaging across HR, payroll, and finance to eliminate confusion.
• Use digital tools to provide tailored plan recommendations based on each employee’s unique needs.

Looking Ahead

The passage of the ‘Big Beautiful Bill’ reinforces the growing role employers play in shaping the employee experience—not just in benefits delivery, but in financial wellness and peace of mind. Staying proactive and focused on communication, personalization, and support will help your organization adapt to these changes and continue delivering real value to your people.