You can now use an HSA for direct primary care

For years, people with a health savings account faced an odd problem. If they joined a direct primary care practice, the IRS could treat the membership as extra health coverage, which risked their ability to contribute to their HSA. Many people who wanted DPC simply couldn't make the numbers work.

What changed

The tax law passed in July 2025, often called the One Big Beautiful Bill Act, fixed this starting January 1, 2026. Under the new rules:

• Having a direct primary care membership no longer disqualifies you from contributing to an HSA.
• You can pay your DPC membership fee from your HSA as a qualified medical expense.
• Both apply only if the fee is no more than $150 a month for an individual or $300 a month for a family. Those limits are set to rise with inflation in later years.

The law also excludes some services from what counts as a direct primary care arrangement, such as most prescription drugs other than vaccines.

What it means for you

If you have a high-deductible health plan with an HSA, you can now pair it with direct primary care and pay the membership with pre-tax dollars. That makes DPC a good fit for many self-employed people, young families and small business employees who already use HSAs.

Check your own situation

Tax rules have details that depend on your plan and your circumstances. Before you use HSA money for a membership, check with your HSA administrator or a tax advisor. For more on how DPC pricing works, read How much does DPC cost in Colorado Springs?

Sources: Stinson LLP, Unpacking the One Big Beautiful Bill's employee benefit provisions.