Proposed Tax Changes for Direct Primary Care and HSA Eligibility
This bill proposes amending the tax code to treat Direct Primary Care (DPC) service arrangements as medical care. Under the proposal, having such an arrangement would not disqualify an individual from contributing to a Health Savings Account (HSA). Furthermore, DPC fees up to a certain limit ($150 per month for an individual) would be considered eligible medical expenses.
Key points
The bill provides that enrolling in a Direct Primary Care (DPC) arrangement would not disqualify an individual from contributing to a Health Savings Account (HSA).
Monthly DPC fees, up to a limit of $150 per person (or twice that amount if the arrangement covers more than one individual), would be treated as medical care expenses.
If an employer provides the DPC arrangement, the aggregate fees must be reported on the employee's W-2 tax form.
Expired
Additional Information
Print number: 118_S_628
Sponsor: Sen. Cassidy, Bill [R-LA]
Process start date: 2023-03-02