Direct Primary Care (DPC) is an increasingly popular model of healthcare that prioritizes access, affordability, and a strong doctor–patient relationship. For many patients, one of the most common questions is whether a DPC membership can be paid for using Health Savings Account (HSA) funds. The short answer is yes, with some important limitations.
Below is a clear breakdown of how HSAs can be used for DPC, the benefits of doing so, and the current rules you should be aware of.
What Is Direct Primary Care?
Direct Primary Care is a membership-based healthcare model in which patients pay a flat monthly fee directly to their physician. This fee typically covers:
- Unlimited or extended primary care visits
- Same-day or next-day appointments
- Direct communication with your physician (phone, text, email)
- Preventive care and chronic disease management
- Transparent pricing without insurance billing
DPC is not health insurance. Instead, it replaces the traditional fee-for-service primary care model with a simpler, relationship-based approach.
Can You Use HSA Funds for DPC Memberships?
Yes. Under current IRS guidance, DPC membership fees are considered a qualified medical expense and may be paid using HSA funds, within specific monthly limits.
Current IRS Limits
- Up to $150 per month for an individual
- Up to $300 per month for a family
If your DPC membership fee is at or below these caps, it is generally eligible for HSA reimbursement or direct payment from your HSA account.
Benefits of Using HSA Funds for DPC
1. Tax-Advantaged Healthcare Spending
HSA funds are contributed pre-tax, grow tax-free, and can be withdrawn tax-free when used for qualified medical expenses. Using HSA dollars for DPC allows you to pay for high-quality primary care with tax-advantaged money.
2. Predictable, Transparent Costs
DPC memberships offer flat monthly pricing with no surprise bills. Paying with HSA funds makes budgeting for healthcare easier and more predictable.
3. Improved Access and Preventive Care
DPC patients often experience longer visits, better access to their physician, and a focus on prevention and early intervention. Using HSA funds supports proactive, relationship-based care rather than reactive, insurance-driven care.
4. Complements High-Deductible Health Plans
Many patients pair DPC with a high-deductible health plan (HDHP) for major medical coverage. Using HSA funds for DPC helps cover day-to-day care while preserving insurance for emergencies and hospitalizations.
Important Limitations and Considerations
While HSA use for DPC is allowed, there are several key limitations to keep in mind:
Monthly Cap Limits
Only the first $150/month for an individual or $300/month for a family qualifies as an HSA-eligible expense. If your membership fee exceeds these amounts, the excess portion must be paid out-of-pocket with non-HSA funds.
DPC Is Not Insurance
A DPC membership does not cover specialty care, hospital services, imaging, or procedures outside the scope of primary care. Most patients still need separate health insurance coverage.
HSA Eligibility Rules Still Apply
To contribute to an HSA, you must be enrolled in an HSA-qualified high-deductible health plan and meet standard IRS eligibility requirements. Using HSA funds for DPC does not change those rules.
Keep Good Records
HSA administrators may require documentation showing that your DPC membership qualifies as a medical expense and that payments fall within the allowed caps. Retain invoices and membership agreements for your records.
Is Using an HSA for DPC Right for You?
For many individuals and families, using HSA funds to pay for a Direct Primary Care membership is a smart and efficient way to invest in accessible, high-quality healthcare. It combines the financial advantages of HSAs with the personalized, prevention-focused care that DPC offers.
As with any tax-related decision, you may wish to consult your tax advisor or HSA administrator to confirm how these rules apply to your specific situation.
If you have questions about Direct Primary Care or how a DPC membership might fit into your overall healthcare strategy, we’re happy to help you explore your options.
This content is for educational purposes only and should not be considered tax or legal advice.