3 Stocks Likely to Gain From Rising HSA Contribution & Medicare Premium

As the United States approaches 2026, key structural shifts in retirement and healthcare financing are poised to affect how consumers pay for care — and how medical device companies compete for growing demand. For investors focused on healthcare innovation and demographic trends, DexCom DXCM, ResMed RMD and Masimo MASI stand out as companies that could benefit from rising Health Savings Account (HSA) contribution limits and higher Medicare premiums in the coming year.

Policy Backdrop: Higher HSA Limits and Medicare Premiums in 2026

For 2026, the Internal Revenue Service has modestly increased HSA contribution limits as part of its annual inflation adjustments. For individuals enrolled in qualifying high-deductible health plans (HDHPs), the contribution limit has risen to $4,400, while the family limit has increased to $8,750, compared with $4,300 and $8,550, respectively, in 2025.

The age-55 “catch-up” contribution remains unchanged at $1,000. These adjustments reflect incremental cost-of-living changes and aim to preserve the tax-advantaged savings power of HSAs for medical expenses and premiums.

Simultaneously, Medicare costs for beneficiaries are rising in 2026. Standard Medicare Part B premiums are increasing to $202.90 per month, nearly $18 above the 2025 level, and the Part B deductible is rising to $283. The inpatient Part A deductible is also rising. These upward adjustments, driven by healthcare cost inflation and program financing dynamics, mean higher direct costs for seniors on fixed incomes.

The combination of rising HSA contribution limits and increasing Medicare premiums has two key implications. First, HSAs become more attractive tools for managing out-of-pocket healthcare costs. Second, higher premiums may drive greater enrollment in Medicare plans and ancillary services designed to offset cost burdens. From a demand perspective, both trends could indirectly support broader adoption of medical devices that lower long-term healthcare costs, improve chronic disease management, or qualify for Medicare reimbursement.

How HSA and Medicare Shifts Affect Medical Device Demand

HSAs are unique among tax-advantaged accounts because funds can be used both for current out-of-pocket medical costs and, critically, for qualified medical device expenses. Higher contribution limits mean consumers can save more tax-free dollars to pay for durable medical equipment or devices that help manage chronic conditions. This may reduce financial barriers to adoption for technologies with meaningful clinical impact but higher upfront costs.

For Medicare beneficiaries, rising premiums tighten monthly budgets, potentially sharpening demand for technologies that either improve disease self-management or prevent costly complications, which ultimately influence total cost of care. Medical devices that demonstrate clinical effectiveness, improve quality of life, and deliver cost offsets in chronic disease settings are likely to be particularly relevant in this environment.

3 Stocks Poised to Benefit

DexCom, ResMed, and Masimo operate in large, secularly growing markets where out-of-pocket considerations and reimbursement policies strongly affect adoption.

DexCom is a market leader in continuous glucose monitoring (CGM) systems for people with diabetes, a chronic condition affecting millions in the United States. The company’s CGM devices — including the G6, G7 family of wearables, and newer offerings — provide real-time glucose data that help individuals and clinicians tailor insulin delivery and lifestyle interventions.

CGM devices have historically been reimbursed through Medicare for eligible patients, particularly those requiring insulin therapy. DexCom played an active role in expanding Medicare coverage criteria for CGM devices, making them accessible to a broader segment of insulin-dependent patients.

The relevance of higher HSA contribution limits is straightforward: patients with type 2 or type 1 diabetes facing higher out-of-pocket costs can now allocate more pre-tax savings toward acquiring advanced CGM systems and associated supplies. Since CGM devices can cost several hundred dollars per month and many require periodic sensor replacement, the ability to draw from an HSA reduces the immediate financial burden and enhances demand willingness.

For Medicare beneficiaries facing rising premiums, HSA funds can provide a cushion to cover deductibles or co-insurance for durable medical equipment.

Moreover, DexCom’s ongoing product innovations (e.g., extended wear CGM sensors, smartphone connectivity, and integration into hybrid closed-loop systems) strengthen its value proposition and may further drive adoption as patients and providers prioritize real-time data to prevent costly complications.

Given the prevalence of diabetes, regulatory momentum supporting coverage expansions, and the tax advantages from larger HSA contributions, DexCom is well-positioned to benefit from both demographic and financial incentives that drive broader adoption of CGM technology.

The company currently carries a Zacks Rank #3 (Hold). Its earnings estimates for 2026, however, have declined 3.5% in the past 60 days but imply 19.6% growth over 2025.

DexCom, Inc. Price

DexCom, Inc. price | DexCom, Inc. Quote

ResMed specializes in devices for sleep-disordered breathing and respiratory care, including positive airway pressure (PAP) devices, masks for obstructive sleep apnea (OSA), and home ventilators. The company has expanded into digital health platforms that augment device therapy with connected monitoring and patient engagement tools.

OSA and other chronic respiratory conditions are closely tied to aging demographics and comorbidities such as obesity and cardiovascular disease. For Medicare recipients, PAP therapy is typically covered under durable medical equipment categories, though beneficiaries may still face out-of-pocket costs for accessories, masks, or certain newer technologies that fall outside basic coverage. Rising premiums may incentivize seniors to use HSAs to finance optimal sleep therapy devices, especially those with comfort, compliance and remote monitoring benefits.

ResMed’s emphasis on connected care ecosystems, which can support remote monitoring and adherence tracking, aligns with payer and provider priorities to reduce hospitalizations and improve quality metrics. As HSAs expand in size, more patients may elect higher-tier devices with digital integrations, reducing long-term comorbidity risks. Furthermore, an aging population, combined with growing awareness of OSA’s health impacts, bolsters demand for ResMed’s core products.

The company currently carries a Zacks Rank #3. Its earnings estimates for 2026 have improved 1.1% in the past 60 days and now imply 9.2% growth over 2025.

ResMed Inc. Price

ResMed Inc. price | ResMed Inc. Quote

Masimo develops a range of non-invasive patient monitoring systems, sensors, and software platforms used in hospital, ambulatory, and home care settings. Its pulse oximetry and advanced monitoring technologies serve a broad clinical spectrum, from critical care to telehealth-enabled chronic care scenarios.

Pulse oximetry and remote monitoring devices are increasingly important in managing respiratory illnesses, perioperative care and chronic conditions — areas where Medicare utilization is concentrated. As beneficiaries face higher premiums, there is a greater incentive for preventive monitoring and early intervention, which is exactly the niche Masimo’s products address.

While not all of Masimo’s products are traditionally covered under HSAs, the broad expansion of digital health spending and greater use of HSA funds for monitoring and telehealth-related devices provide tailwinds for adoption. Masimo’s solutions may help lower healthcare costs by reducing expensive acute episodes, enhancing their appeal to patients and payers navigating escalating cost pressures.

The company currently carries a Zacks Rank of 3. Its earnings estimates for 2026 have improved 1.2% in the past 60 days and now imply 6.3% growth over 2025.

Masimo Corporation Price

Masimo Corporation price | Masimo Corporation Quote

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