News for Direct Primary Care Patients: DPC Now Clearly Compatible with HSAs
Finally clarity—and really good news—regarding the tax treatment of Direct Primary Care (DPC)! Thanks to new federal legislation (section addressing DPC is 71308) effective January 01, 2026, DPC arrangements are now officially recognized by the IRS as compatible with Health Savings Accounts (HSAs).
This long-awaited change eliminates prior confusion and affirms what many patients and physicians have long believed: you should have the freedom to choose a transparent, patient-centered model of care—and still benefit from tax-advantaged health savings.
What this means for you as a DPC member:
- You can now enroll in both a qualified high-deductible health plan (HDHP) and a DPC membership, without losing your HSA eligibility.
- HSA funds can be used, tax-free, to pay DPC fees (within IRS-set limits).
How the limits & rules may affect you and us:
- There is a maximum fee for HSA eligibility – $150/month for an individual or $300/month for a family (indexed for inflation).
- DPC must provide primary care services only – this means we will not include labs and medications in your DPC fees.
This is a major win for free market healthcare. Patients are now empowered to choose a direct relationship with their doctor, free of insurance bureaucracy, while still enjoying the tax advantages of an HSA. Just as you shop for the best value in other services, you now have greater freedom to shop for high value healthcare that puts your needs first.
If you’ve benefited from DPC services for a long time, you’re familiar with the DPC advantage:
- Longer visits and real relationships with your doctor
- Transparent pricing with no surprise bills
- Direct communication via text, phone, or virtual visits
- Same-day or next-day appointments
- No co-pays or balance bills
- DPC puts the doctor-patient relationship at the center, not insurance paperwork
Spread the Word! This is important news for families, business owners, and the self-employed. If you or someone you know makes healthcare decisions for employees or their family, share this update. DPC is now not only a smarter, more personalized model of care—it’s also fully compatible with today’s tax-advantaged healthcare tools.
The future of primary care is personal, affordable, and finally, tax-friendly.
NOTE: This blog post reflects early interpretations of the OBBB legislation. The regulatory landscape is still developing, and we expect further clarification from federal agencies in the coming months. We’ll continue to monitor changes closely and share updates as they emerge.