HR1026-119

Introduced

To amend the Internal Revenue Code of 1986 to allow individuals with direct primary care service arrangements to remain eligible individuals for purposes of health savings accounts, and for other purposes.

119th Congress Introduced Feb 5, 2025

Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.

Summary

What This Bill Does

The bill amends IRC Section 223 to exempt Direct Primary Care (DPC) service arrangements from being treated as health plans, allowing HSA holders to pay up to $150/month ($300 for family coverage) for DPC memberships while. It relies on exemptions, definition changes, and reporting requirements. The main policy areas are Healthcare and Finance.

Who Benefits and How

Direct Primary Care (DPC) clinics and physicians offering subscription-based primary care could gain revenue opportunities, Individuals with Health Savings Accounts (HSAs) who want to use DPC services could see lower costs, and Health insurance companies selling high-deductible health plans (HDHPs) paired with HSAs could gain revenue opportunities.

Who Bears the Burden and How

IRS and Treasury Department would take on compliance duties and Employers offering DPC arrangements as a benefit would take on compliance duties.

Key Provisions

  • Amends IRC Section 223 to exempt Direct Primary Care (DPC) service arrangements from being treated as health plans, allowing HSA holders to pay up to $150/month ($300 for family coverage) for DPC memberships while...

Evidence Chain:

This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.

At a Glance

What This Bill Does

The bill amends IRC Section 223 to exempt Direct Primary Care (DPC) service arrangements from being treated as health plans, allowing HSA holders to pay up to $150/month ($300 for family coverage) for DPC memberships while.

Key Policy Areas

Healthcare, Finance

Primary Purpose

The bill amends IRC Section 223 to exempt Direct Primary Care (DPC) service arrangements from being treated as health plans, allowing HSA holders to pay up to $150/month ($300 for family coverage) for DPC memberships while.

Policy Domains

Healthcare Finance

HR 1026 - Primary Care Enhancement Act of 2025

Identified Gains
  • Direct Primary Care (DPC) clinics and physicians offering subscription-based primary care
  • Individuals with Health Savings Accounts (HSAs) who want to use DPC services
  • Health insurance companies selling high-deductible health plans (HDHPs) paired with HSAs
Model: codex-gpt-5:bulk-repair | Version: bill_summary_v2 | Source: ih
Individuals with Health Savings Accounts (HSAs) who want to use DPC services:
Health insurance companies selling high-deductible health plans (HDHPs) paired with HSAs:
Direct Primary Care (DPC) clinics and physicians offering subscription-based primary care:
Identified Costs
  • IRS and Treasury Department
  • Employers offering DPC arrangements as a benefit
Model: codex-gpt-5:bulk-repair | Version: bill_summary_v2 | Source: ih
IRS and Treasury Department:
Employers offering DPC arrangements as a benefit:

Legislative Progress

Introduced
Introduced Committee Passed
Feb 5, 2025

Mr. Smucker (for himself, Ms. Tenney, Mr. Schneider, Mr. Panetta, …

Stakeholder Effects

cui bono?

How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.

Physicians & Other Health Professionals
1 mention across 1 clause
+1 positive

Direct Primary Care (DPC) clinics and physicians offering subscription-based primary care

Consumers
1 mention across 1 clause
+1 positive

Individuals with Health Savings Accounts (HSAs) who want to use DPC services

Financial Services
1 mention across 1 clause
+1 positive

Health insurance companies selling high-deductible health plans (HDHPs) paired with HSAs

Business
1 mention across 1 clause
-1 negative

Employers offering DPC arrangements as a benefit

Government
1 mention across 1 clause
-1 negative

IRS and Treasury Department

1/2
sections analyzed
Full impact breakdown

Bill Structure & Actor Mappings

Who is "The Secretary" in each section?

Domains
Healthcare Finance
Actor Mappings
"the_secretary"
→ Secretary of the Treasury
"secretary_of_hhs"
→ Secretary of Health and Human Services

Note: The Secretary (of the Treasury) is the primary actor, with consultation required from the Secretary of Health and Human Services for regulatory guidance on primary care services exclusions.

Key Definitions

Terms defined in this bill

4 terms
"primary care services" §2(a)(E)(iii)

Medical care that does NOT include: (I) procedures requiring general anesthesia, (II) prescription drugs (other than vaccines), and (III) laboratory services not typically administered in an ambulatory primary care setting.

"direct primary care service arrangement" §2(a)(E)(ii)(I)

An arrangement under which an individual is provided medical care (as defined in section 213(d)) consisting solely of primary care services provided by primary care practitioners (as defined in section 1833(x)(2)(A) of the Social Security Act), if the sole compensation for such care is a fixed periodic fee.

"limitation on direct primary care service arrangement" §2(a)(E)(ii)(II)

For any individual for any month, an arrangement is not a direct primary care service arrangement if the aggregate fees for all DPC arrangements exceed $150 per month ($300 for arrangements covering more than one individual).

"primary care practitioners" §1833(x)(2)(A) SSA

Defined in section 1833(x)(2)(A) of the Social Security Act (referenced but not reproduced in this bill)

We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.

Learn more about our methodology