WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA) introduced the Primary Care Enhancement Act to increase access to affordable preventative and primary care by allowing health savings accounts (HSAs) to be used to pay for direct primary care (DPC).
“Relying on specialists and hospital referrals is expensive and time-consuming. Access to direct primary care gives patients more control over their health care and empowers them to see the doctor they trust,” said Dr. Cassidy.
Cassidy was joined by U.S. Senators Tim Scott (R-SC), Jeanne Shaheen (D-NH), James Lankford (R-OK), and Mark Kelly (D-AZ) in introducing the legislation.
Background
DPC is a growing model used by thousands of practices in almost every state. With DPC, care is delivered in any setting, including virtual care, telemedicine, and office visits beyond normal business hours. DPC reduces the burden on emergency rooms and clinics and encourages patients to develop personal relationships with their doctors. The bill clarifies the tax code so 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 agreements replace copays and deductibles with flat, affordable monthly fees. Current tax law makes DPC incompatible with health savings account (HSA) plans because the IRS defines DPC as insurance. Over thirty states have passed laws and regulations to clarify that DPC is not insurance, but a medical service.
