Concierge medicine is an emerging and trending model in the American health care system, which has evolved as one of the best alternatives to insurance-based health care. Nowadays, people are choosing these membership-based models over insurance-based traditional health care models.
Most concierge medicine practices do not accept health insurance, but the good news is Concierge Medicine and Health Savings Account (HSA) work well together.
If you have a Health Savings Account (HSA) plan, knowing your way around Concierge Medicine can lower your healthcare costs.
Providers mostly accept cash or credit cards, and HSA serves as a smart and viable alternative to get coverage.
Concierge medicine takes us back in time when healthcare was better and more accessible – like how it was in the '60s when doctors came to your house to treat you. This is just one of the many benefits of having a Concierge Medicine membership.
Instead of a fee-for-service agreement employed under the insurance-based model, your provider charges you anywhere from $50 to $1500 per month in exchange for a series of services under the concierge agreement.
Some of the most common services include extended and same-day appointments, 24/7 access to the personal line of your provider, and more.
And the result of all the perks granted under concierge medicine? Convenience in accessing healthcare, precision in determining medical issues, and a closer doctor-patient relationship.
A Health Savings Account (HSA) is an account that gives you more control over your healthcare spending. You can get one by having a high-deductible health plan (HDHP) that charges a lower premium but has a higher deductible.
A higher deductible initially sounds unattractive because it means that you will have to pay more out of pocket, but that is the whole purpose of your HSA. It lets you put aside money specifically for medical expenses that you can use should you need it.
As a tax-advantaged account, the government does not tax anything you put into it – including any interest you earn.
But what makes it great is your contribution here (currently set at a maximum of $3,550 per year) comes from your untaxed income. So if you are in the 24% tax bracket, you are essentially saving a little more than $1,100 just by setting aside money in your HSA.
If you are unsure whether your HSA will cover a medical expense, remember this general rule: if insurance normally pays for it, so will your HSA.
Following this general rule, your Health Savings Account cannot pay for your concierge medicine membership fees. But you can still use it for paid services your concierge doctor offers. You can:
In any case, make sure to get an itemized bill from your doctor. Detailed records would come very useful should the IRS audit you.
Although you cannot directly use your HSA to cover your membership fee, there may be a way for you to circumvent this rule.
Normally, this fee includes a range of services, some of which are already paid for under the concierge agreement. And as you no longer have to pay for these services, it opens an opportunity for reimbursement.
If your doctor is willing to provide an invoice for such services, you can reimburse yourself through your HSA. Perhaps it will not cover the full amount, but it will help reduce your out-of-pocket expense.
Better yet, ask your concierge doctor which services under the agreement are potentially reimbursable. This will give you a better sense of your medical expenses under concierge medicine.
Concierge medicine and Health Savings Account (HSA) are both revolutionary solutions. They work well together in managing your medical costs while also improving the healthcare quality you receive.
Now how to choose a concierge doctor? Making exceptional healthcare accessible to patients like you is our ultimate goal. Enjoy the best that healthcare has to offer, and find a concierge doctor in your area.
Membership fees in Concierge Medicine are not covered by your Health Savings Account (HSA), although there is a way to work around this. In most cases, Concierge Medicine membership fees encompass a list of services, which you can go over to see which ones are reimbursable via your HSA.
The rule of thumb here is this: if insurance can pay for it, so will your HSA. This means that, although your HSA cannot cover for your Concierge fees in total, there are particular services within your membership which can be reimbursed using your HSA.
Although your HSA cannot cover your Concierge Medicine membership fee, what you can do is to simply pull funds from your HSA and pay your Concierge doctor directly. No need to worry about getting taxed – this is accepted because physician fees are considered a qualified medical expense.
There are ways you can utilize your HSA to pay for certain services within your Concierge Medicine subscription, even though your membership or subscription fee is not an eligible expense under your HSA. Make sure to check which Concierge services are reimbursable and always ask your doctor for an invoice so that processing your reimbursements are a breeze.
Concierge membership fees are not HSA eligible, although doctor fees are HSA reimbursable. A great work-around for your Concierge membership fees not being HSA eligible is to go over the list of medical services included in your membership and see which ones are HSA reimbursable.
While your entire Concierge membership fee cannot be covered by HSA, there are specific services within your Concierge subscription which are HSA reimbursable. This can still merit you significant medical savings so taking time to do your research is very important.
No, you cannot use your HSA to cover medical membership fees in Direct Primary Care and Concierge Medicine subscriptions. On the other hand, there are medical services within your membership which can be reimbursed through your HSA.
No Concierge fees are HSA eligible, but there are certain charges within your Concierge subscription which are qualified for HSA reimbursement – doctor fees are one of them.
Authored by Harsha Moole, M.D., MBBS
Advocate of healthcare models that promote direct relationship between patients and doctors. Founder @ FindMyDirectDoctor, LLC.
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