Bill > HR1140

This bill, known as the "Direct Medical Care Freedom Act of 2025," amends the Internal Revenue Code to modify how direct medical care service arrangements interact with health savings accounts (HSAs). Specifically, the bill clarifies that a direct medical care service arrangement—where an individual pays a fixed periodic fee to receive medical care from a practitioner—will not be considered a health plan that would disqualify someone from HSA eligibility. The bill defines medical care practitioners as physicians, nurse practitioners, clinical nurse specialists, and physician assistants. Additionally, the bill allows fees paid for direct medical care service arrangements to be treated as medical expenses for tax purposes and requires employers to report the aggregate fees for such arrangements on employee W-2 forms. These changes would take effect for months beginning after December 31, 2024. The primary goal is to provide more flexibility for individuals who use direct medical care arrangements, ensuring they can still maintain their health savings accounts without penalty.

Budget and Finance

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