Proposed Regulations from IRS: Good News?

Regarding Payments to Health Sharing Ministries, Direct Primary Care “Deductible”

On June 8, the Internal Revenue Service (IRS) proposed that premiums and fees paid for direct primary care or health care sharing ministries be eligible for reimbursement by employers under health reimbursement arrangements (HRAs) and for deduction as a medical expense.

This draft IRS rule stems from an executive order that required the IRS to issue regulations within six months to allow certain arrangements, including direct primary care and HCSMs, as eligible medical expenses under section (213)d of the IRS code.

“On June 24, 2019, President Trump issued Executive Order 13877, “Improving Price and Quality Transparency in American Healthcare to Put Patients First” (84 FR 30849 (June 27, 2019)). The Executive Order states that it is the policy of the Federal Government to ensure that patients are engaged with their healthcare decisions and have the information requisite for choosing the healthcare they want and need.”  The complete article can be read here.

You can find the IRS draft rule here.