We’re excited to share a transformative update for employers and employees alike! Thanks to the One Big Beautiful Bill Act (OBBBA), starting January 1, 2026, Health Savings Account (HSA) funds can be used to pay for Direct Primary Care (DPC) membership fees. This policy change, outlined in Section 71308 of the OBBBA, removes a long-standing barrier, allowing employers to integrate DPC into their benefits packages while preserving employees’ ability to contribute to and use HSAs. At Cove DPC, our Nurse Practitioner-led care is ready to help businesses and their teams leverage this opportunity for better healthcare and cost savings.
What This Means for Employers
- Enhanced Employee Benefits: Offering DPC memberships as part of your benefits package can attract and retain talent by providing access to personalized, high-quality primary care. Employees can use HSA funds to cover DPC fees (up to $150/month for individuals or $300/month for families), making it a tax-advantaged perk that complements High Deductible Health Plans (HDHPs).
- Cost Control and Predictability: DPC’s flat-fee model, now HSA-eligible, helps employers budget for healthcare costs more effectively. By covering routine care like wellness visits and chronic condition management, DPC reduces reliance on costly specialist referrals and emergency care, potentially lowering overall healthcare spending.
- Improved Workforce Health and Productivity: With unlimited access to primary care, including same-day appointments and telehealth, employees can address health concerns promptly, reducing absenteeism and boosting productivity. DPC’s focus on preventive care aligns with wellness programs, fostering a healthier workforce.
- Compliance Made Simple: The OBBBA clarifies that DPC arrangements are not considered a secondary health plan under IRS rules, ensuring employees can continue contributing to HSAs without risking their tax-qualified status. Employers must report any DPC fees paid on employees’ W-2 forms, but this integration is now seamless.
What This Means for Employees
- HSA + DPC = Smarter Healthcare Savings: Employees can pair their HSA with a DPC membership at Cove DPC to cover routine care—think check-ups, urgent visits, and chronic condition management—while maintaining an HDHP for catastrophic coverage. This maximizes tax-free savings for healthcare expenses.
- More Access, Less Stress: Using HSA funds for DPC memberships means employees can prioritize their health without worrying about out-of-pocket costs for primary care, with no copays or deductibles for routine services.
- Personalized Care at Cove DPC: Our DPC model, led by our Nurse Practitioner, offers unlimited visits, direct access to your provider via telehealth or secure messaging, and longer appointments tailored to your needs—all now more affordable with HSA funds.
Why This Change Matters
This policy shift eliminates a previous IRS restriction that treated DPC memberships as a “health plan,” which had prevented HSA holders from using funds for DPC fees or contributing to HSAs if enrolled in a DPC arrangement. Now, employers can confidently offer DPC as a benefit, knowing it aligns with HSA-eligible HDHPs. This change promotes fairness, as employees with HSAs can access the same high-quality primary care as those without, fostering better health outcomes and financial flexibility. For businesses, it’s an opportunity to enhance benefits packages while controlling costs, especially for small and medium-sized enterprises with fewer than 50 employees.
How Employers Can Get Started
- Explore DPC Integration: Partner with Cove DPC to design a benefits package that includes DPC memberships. Our team can help structure fees to stay within the $150/month (individual) or $300/month (family) cap for HSA eligibility.
- Educate Your Workforce: Share the benefits of DPC and HSA compatibility with employees, emphasizing how they can use tax-free HSA funds for primary care while maintaining HDHP coverage.
- Consult a Benefits Advisor: Work with a benefits attorney or tax advisor to ensure compliance with IRS reporting requirements, such as including employer-paid DPC fees on W-2 forms.
Ready to Transform Your Healthcare Benefits?
Curious about how Cove DPC’s Nurse Practitioner-led care can elevate your employee wellness program? Visit www.covedpc.com to explore our membership plans, meet our team, and learn how to integrate DPC into your benefits strategy starting in 2026. Contact us today to schedule a consultation and see how we can help your business and employees thrive.
