S.1719 - Primary Care Enhancement Act of 2025 (119th Congress)
Summary
The Primary Care Enhancement Act of 2025 (S.1719) aims to amend the Internal Revenue Code of 1986 to include direct primary care (DPC) service arrangements as medical care expenses. This would allow individuals to use health savings accounts (HSAs) for DPC arrangements without disqualifying their HSA contributions. The bill also sets a monthly limit on eligible DPC fees and requires employers to report DPC fees on employee W-2 forms.
Expected Effects
The bill will likely increase the adoption of direct primary care models by making them more financially accessible through HSAs. This could lead to more patients having access to primary care physicians under a fixed periodic fee arrangement. The reporting requirement on W-2 forms will also increase transparency regarding DPC expenses.
Potential Benefits
- Increased access to primary care through DPC models.
- Greater flexibility in healthcare spending for individuals with HSAs.
- Potential for lower healthcare costs due to preventative care focus in DPC.
- Tax advantages for individuals using DPC arrangements.
- Increased transparency in healthcare spending through W-2 reporting.
Potential Disadvantages
- The monthly limit on eligible DPC fees may restrict the full benefit for some individuals.
- The exclusion of certain services (e.g., procedures requiring general anesthesia) from DPC arrangements may require additional insurance coverage.
- Potential administrative burden for employers to report DPC fees on W-2 forms.
- The indexing of the fee amount may not keep pace with actual healthcare costs.
- May disproportionately benefit higher-income individuals who are more likely to have HSAs.
Constitutional Alignment
The bill aligns with the general welfare clause of the Constitution (Preamble), as it aims to improve healthcare access. Congress has the power to lay and collect taxes (Article I, Section 8) and to make laws necessary and proper for carrying out these powers. The bill's amendments to the Internal Revenue Code fall under this authority. There are no apparent infringements on individual rights or freedoms as defined by the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).