Friday, January 19, 2018

DPC vs HSA: Interesting Twist

DPC, of course, being Direct Primary Care, about which we've written extensively over the years (here, for example). My primary criticism of the model (and really the only substantive one from my perspective), is this:

"As long as ObamaCare remains the law of the land, there is never going to be a good *economic* rationale for DPC." [emphasis in original]

But that may be changing, if only a little.

There's a movement gaining steam proposing that DPC fees be made eligible for reimbursement from one's HSA (Health Savings Account):

I think this is a great idea, and I would suggest only that it doesn't really encompass the full value of such a change.

And what's that, Henry?

Well, in the Alternative Benefits field, we talk a lot about HSAs, but also HRAs (Health Reimbursement Arrangements) and FSAs (Flexible Spending Accounts). Seems to me that whatever magic necessary to make DPC fees HSA-eligible would, by definition, render them kosher for HRAs and FSAs, as well.

I suspect that there are a lot more FSAs (and, perhaps, HRAs) out there than HSAs, specifically in the group market (where employers' financial liability is much favorable to the former two).

In any case, a hopeful sign, and perhaps a welcome change

[Special IB Thanks to Jennifer C at FlexBank]
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