DPC and HSAs: The $150 Rule and How to Opt Out of Medicare | Dr. Phil Eskew
Direct Primary Care no longer disqualifies patients from HSA eligibility. As of January 1, 2026, DPC membership fees are a qualified HSA expense at or below $150 per month for one person and $300 for a family. Above $150 you are not in violation. You are in the same gray zone DPC lived in for a decade, and the tax position belongs to the patient and their accountant, not to you. Dr. Phil Eskew (DO, JD, MBA) of DPC Frontier joins Dr. Maryal Concepcion to break down what changed and what it means for your practice, then walks through the Medicare opt-out calendar most physicians discover too late. KEY NUMBERS AND DATES $150/month per person, $300 family. Effective January 1, 2026. Opt-outs take effect only on January 1, April 1, July 1, October 1. Affidavit must be filed at least 30 days before the effective date. File by roughly December 1, 2026 to be opted out January 1, 2027. 90-day reversal window, but you must refund every membership dollar collected. QUESTIONS ANSWERED Can patients use an HSA to pay for direct primary care? Yes, as of January 2026. Both old IRS objections were fixed: whether the fee is a medical expense, and whether membership disqualifies HSA contributions. Should I put "HSA eligible" on my website? No. Write "We accept HSA cards." Promising eligibility in your marketing or agreement takes on a tax position on your patient's behalf. How do I get under $150 without losing revenue? Enrollment fees are not compensation for care. Blood draws, injections, EKGs, and dispensed medications can price separately. What does the rule exclude? Prescription drugs other than vaccines, and lab services not typically done in an ambulatory primary care setting. If I opt out, can I still order labs and referrals? Yes. Opting out is not disenrollment. You stay credentialed and Medicare pays for labs, imaging, referrals, DME, and prescriptions you order. Where can I still work while opted out? VA, Indian Health Service, corrections, and hospice administrative work. Precepting usually requires participation. TRICARE requires Medicare participation. Medicaid uses ORP/OPR status, prohibited in Kentucky and Colorado. Does opt-out apply to Medicare Advantage? Yes. Opt-out applies to all Medicare programs nationwide. You cannot opt out selectively. MENTIONED DPC Frontier · McCarran-Ferguson Act (1945) · ACA primary care carve-out · bronze and catastrophic plans as HSA-compatible · capacity vs. competency · durable power of attorney · prior authorization escalation strategy HAVE A QUESTION? WE ANSWER THEM ON AIR. Leave a voicemail at mydpcstory.com/contact with your name, state, and question. NEXT EPISODE: ILLINOIS , timed to the Illinois DPC Summit, October 2 and 3, NIU Naperville. Subscribe to the My DPC Story newsletter at mydpcstory.com to know when it drops. Educational only. Not legal or tax advice. Dr. Eskew is not your attorney. Stand With Dr. Nyasha Spears and the Future of Patient-Centered Healthcare. Get the MEDICARE & MEDICARE ADVANTAGE OPEN ENROLLMENT SURVIVAL GUIDE at mydpcstory.com/shop ! Get your copy of the Physician Owner's Planner today at mydpcstory.com/library Start using the done-for-you patient emails, scripts etc. in our 2027 Edition of the MEDICARE & MEDICARE ADVANTAGE OPEN ENROLLMENT SURVIVAL GUIDE at mydpcstory.com/shop ! Support the show GET your FREE MONTHLY BUSINESS TOOL DOWNLOAD Become A My DPC Story PATREON MEMBER ! SPONSOR THE POD My DPC Story VOICEMAIL ! DPC SWAG! FACEBOOK * INSTAGRAM * LinkedIn * TWITTER * TIKTOK * YouTube






