U.S. Sen. Bill Cassidy (R-LA) on Jan. 28 sponsored a bipartisan bill to expand patients’ access to their primary care providers and decrease the cost of healthcare by allowing health savings accounts (HSAs) to be used for direct primary care (DPC).
“This bill allows patients to use their money for the doctor they want,” Sen. Cassidy said. “By using health savings accounts and direct primary care, patients have the power to take control of their families’ healthcare decisions in the way that works best for them.”
Sen. Cassidy introduced the Primary Care Enhancement Act, S. 128, with cosponsor U.S. Sen. Mark Kelly (D-AZ), to clarify the tax code to say that a DPC agreement does not make a patient ineligible to contribute to an HSA, and that pre-tax HSA funds may be used to pay DPC fees.
DPC is a growing model used by thousands of practices in almost every state that allows patients access to primary care in any setting with no additional fees, according to information provided by Sen. Cassidy’s office.
DPC agreements replace copays and deductibles with flat monthly fees, however employers under current tax laws cannot provide this benefit to anyone with an HSA paired with high-deductible health plans because the Internal Revenue Service defines DPC as insurance, according to the information.
More than 30 states have passed laws and regulations to clarify that DPC is not insurance, but a medical service, and the Affordable Care Act recognizes DPC as an advanced payment model outside insurance.
“For more and more Arizonans, direct primary care is their preferred option of getting quality health care, and this common sense fix would allow many of them to use their existing benefits to make that care more affordable,” said Sen. Kelly. “Especially during this pandemic, it’s critical to continue working on solutions to lower the cost of healthcare.”