DPC News

Proposed direct primary care regulations threaten HSAs

A new IRS directive would allow employers to help pay for direct primary care on behalf of their employees, but is it a good thing?

By Jennifer Spiegel Berman | July 29, 2020 at 10:05 AM

On June 10, 2020, the IRS issued proposed regulations to “treat expenses related to certain types of arrangements, potentially including direct primary care arrangements . . . as eligible expensed under Section 213(d) [of the Internal Revenue Code]” in accordance with an Executive Order issued by President Trump last summer.

RELATED INSIGHT| Proposed Rule | Regulations.gov
Certain Medical Care Arrangements | Posted by the Internal Revenue Service on Jun 10, 2020 https://beta.regulations.gov/document/IRS-2020-0016-0001

Submit a public comment about the proposed rule by the deadline, Monday, August 10.

Submit Comment Here https://beta.regulations.gov/comment/IRS-2020-0016-0001

In layman’s terms, the President directed the IRS to update its rules to allow for direct primary care, often called concierge medicine, to be treated as a medical expense for tax purposes. If finalized, the new rules will allow individuals to claim retainers paid to a primary care physician for guaranteed as a medical expense. They would also allow employers to help pay for a direct primary care doctor on behalf of their employees through the use of a health reimbursement arrangement. More details on how this works are available here.


SOURCE: https://www.benefitspro.com/2020/07/29/proposed-direct-primary-care-regulations-threaten-hsas/?slreturn=20200630124837

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