Direct Primary Care

[Dave T]

Clients. both husband and wife,  had very large medical expenses in 2023. In addition their other Sch. A expenses put them right on the threshold of being able to itemize. 

They participate in , but did not include in the medical expenses, Direct Primary Care membership.  Client didn't think that this could be included and in the brief reading I have done that is the case but also that legislation had been proposed to allow it.

Does anyone have any kind of update on this?  I have to admit that I was not familiar with this.

Thank you

 

 

[Lee B]

They are monthly fees paid to a Doctor  or a medical practice for routine medical care in lieu of being billed for the same care.

How is it any different than me billing my monthly write up clients every month or paying a retainer to an Attorney.

IMHO I would consider them to deductible medical expenses.

[TexTaxToo]

I think it depends on what the fees are for.  "Concierge" fees which simply provide access (quicker appointments, a direct phone number, etc.), but where the medical care is billed separately in addition to the fee, are not considered to be for medical care and are not deductible.

But "Direct primary care" generally means the fees include medical care, so they are likely deductible.  The IRS has proposed regulations (REG-109755-19) which if finalized, would indicate when they are deductible, but I don't think they have been finalized.

Quote

The proposed regulations define a “direct primary care arrangement” as a contract between an individual and one or more primary care physicians under which the physician or physicians agree to provide medical care (as defined in section 213(d)(1)(A)) for a fixed annual or periodic fee without billing a third party.