Congresswoman Claudia Tenney (NY-24), a member of the Ways and Means Committee, joined her colleagues in reintroducing H.R. 3029, the Primary Care Enhancement Act. This bipartisan legislation is designed to expand access to direct primary care (DPC).
Additional co-leads include Representatives Lloyd Smucker (R-PA), Earl Blumenauer (D-OR), and Brad Schneider (D-IL).
The legislation would clarify provisions of the Internal Revenue Code to enable individuals with Health Savings Accounts (HSAs) to use those funds to access DPC. This healthcare delivery model provides essential high-quality primary care at a lower cost for individuals of all ages and incomes across the United States.
“Direct Primary Care (DPC) is an innovative monthly membership-based payment plan that helps reduce health care costs while providing high-quality primary care to patients,” said Congresswoman Tenney. “DPC is a popular option for upstate New Yorkers and promotes a strong and trusting relationship between patients and their health care providers. The bipartisan Primary Care Enhancement Act removes the tax barrier that inhibits patients with Health Savings Accounts (HSAs) from reaping the benefits of DPC. I will always be a champion for legislation that promotes health care flexibility and affordability.”
“I am proud to collaborate with my colleagues on the Ways & Means Committee to introduce this bipartisan legislation to expand access to affordable primary care. As a former business owner that provided health insurance for over 150 employees, I know that innovative care delivery models like direct primary care put patients in charge of their health, improve outcomes, and reduce costs for businesses and employees. Unfortunately, the Internal Revenue Service’s interpretation of current tax law prevents individuals with Health Savings Accounts (HSAs) from accessing direct primary care, even when their colleagues without HSAs can do so. I am thankful for my colleagues’ support of this bipartisan legislation to expand access to direct primary care,” said Congressman Smucker.
Background:
DPC is a healthcare delivery model that reduces costs and improves access to primary care. Employers report up to 20% savings on the total cost of care for their employees by providing better health care up front in the primary care setting, reducing unnecessary hospital and specialty care, and drastically reducing administrative expenses.
More than twenty states have passed laws defining DPC care as a medical service and not a health insurance plan. Likewise, Department of Health and Human Services (HHS) rules on Essential Health Benefits clearly state that DPC arrangements are medical services, not health insurance.
Currently, the Internal Revenue Service (IRS) prohibits individuals with HSAs from funding their accounts if they have a DPC arrangement. Furthermore, individuals cannot use their existing HSA dollars to pay for the monthly or annual DPC fees as qualified medical expenses.
Primary Care Enhancement Act:
The Primary Care Enhancement Act clarifies two provisions in the Internal Revenue Code that currently treat these innovative payment arrangements for employees and individuals as health insurance rather than medical services. The bill would allow patients using DPC to contribute to their HSAs and use HSA funds to pay for direct primary care fees.
The Primary Care Enhancement Act has twice been favorably reported out of the Ways & Means Committee with bipartisan support in prior Congresses.
Senate companion legislation, S.628, is sponsored by Sens. Bill Cassidy, Jeanne Shaheen, Tim Scott, and Mark Kelly.
