Treatment of Direct Primary Care Service Arrangements
Section 71308 · Sec. 71308 ·
What this chapter is about
This part lets a person keep a health savings account while on a direct primary care plan. Fees may not top $150 a month. Those fees count as medical costs. It reaches months after December 31, 2025.
The document says “shall not”Who acts: Secretary of the TreasuryHow: statuteSec. 71308 in the PDF
What the document says
“A direct primary care service arrangement shall not be treated as a health plan for purposes of subparagraph (A)(ii).”
The section adds a new subparagraph (E) to section 223(c)(1) of the Internal Revenue Code of 1986 so that a direct primary care service arrangement does not count as a health plan for the purposes of the rule that would otherwise bar a health savings account.
What the document actually says
“A direct primary care service arrangement shall not be treated as a health plan for purposes of subparagraph (A)(ii).”
That sentence, in plain words
Such an arrangement is not treated as a health plan. That holds for one named rule.
What this is about
That rule would otherwise block a health savings account. So a person may keep both. The tax code is not indexed here.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
“The term `direct primary care service arrangement' means, with respect to any individual, an arrangement under which such individual is provided medical care (as defined in section 213(d)) consisting solely of primary care services provided by primary care practitioners”
The section defines the term as an arrangement giving medical care as defined in section 213(d) that consists only of primary care services from primary care practitioners as defined in section 1833(x)(2)(A) of the Social Security Act, where the only payment is a fixed periodic fee. The term does not cover an arrangement where total fees for a month top $150, or twice that where an arrangement covers more than one person. Primary care services do not include procedures needing general anesthesia, prescription drugs other than vaccines, or laboratory services not usually given in an ambulatory primary care setting.
What the document actually says
“The term `direct primary care service arrangement' means, with respect to any individual, an arrangement under which such individual is provided medical care (as defined in section 213(d)) consisting solely of primary care services provided by primary care practitioners”
That sentence, in plain words
The term covers a deal giving one person medical care. That care must be only primary care. It must come from primary care staff.
What this is about
The only payment may be a set regular fee. Fees may not top $150 a month. That doubles where more than one person is covered.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The section adds a new clause (v) to section 223(d)(2)(C) of the Internal Revenue Code of 1986 so that fees for such an arrangement count as medical expenses, and amends section 223(g)(1) so that from a taxable year beginning after 2026 the $150 cap rises with a cost of living adjustment measured from calendar year 2025. The amendments apply to months beginning after December 31, 2025.
What the document actually says
“any direct primary care service arrangement.”
That sentence, in plain words
The list now names such an arrangement.
What this is about
Items on that list count as medical costs. So account money may pay the fee. The $150 cap grows with prices after 2026.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Each distinct thing the section does: stop a direct primary care arrangement counting as a health plan, define the term and cap the monthly fee, exclude three kinds of service from primary care, treat the fees as medical expenses, index the cap, and fix the effective date.
The punctuation edits that make room for the new clause in the medical expense list.
The section works by amending section 223 of the Internal Revenue Code of 1986 and points to sections 213(d) of that Code and 1833(x)(2)(A) of the Social Security Act, neither of which is indexed here.
