Direct Primary Care (DPC) now qualifies as an HSA-eligible expense!

As a family medicine physician, I am excited to share some important news regarding healthcare expenses and tax benefits. The recent tax bill, which became Public Law No: 119-21 on July 4, 2025, has introduced a significant change that directly impacts patients who are part of, or wish to join Direct Primary Care (DPC) practices.

What is the Change?

The new tax legislation allows payments made to DPC practices to be considered as qualified medical expenses under Health Savings Accounts (HSAs). This means that patients can now use their HSA funds to pay for DPC membership fees, providing a tax-advantaged way to manage healthcare costs. Most employers offer this option--you can elect how much money to put in your account during Open Enrollment every year. More good news: HSA funds do not expire.

Why is This Important?

Previously, DPC payments were not recognized as HSA-eligible expenses, which limited the financial flexibility for patients who wanted to benefit from both DPC services and the tax advantages of an HSA. With this change, patients can now enjoy the personalized care offered by DPC practices while also maximizing their tax savings.

When Does This Take Effect?

The provision allowing DPC payments to be HSA-approved expenses will go into effect on January 1, 2026. Patients should consult with their financial advisors or tax professionals to understand how this change may benefit their specific situation.

This change represents a positive step towards making healthcare more accessible and affordable. As always, I am here to support my patients in navigating these changes and ensuring they receive the best possible care.

For more information or to discuss how this might affect your healthcare planning, feel free to reach out to my office.

Dr. Megan Elizabeth Hennessay, DO

Hennessay Medical Direct Primary Care

3655 Lomita Blvd, Suite 307, Torrance, CA, 90505

Phone: 424-235-5235

info@hennessaymedical.com

Dr. Megan Hennessay, Hennessay Medical Direct Primary Care (DPC)

References:

1. Text of the Tax Bill - Public Law No: 119-21 (https://www.congress.gov/bill/119th-congress/house-bill/1/text)