Concierge Medicine

How To Use HSA for Concierge Medicine?

May 23, 2021

Harsha Moole, M.D., MBBS

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.

What is Concierge Medicine?

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.

What is a Health Savings Account (HSA)?

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 on the 24% tax bracket, you are essentially saving a little more than $1,100 just by setting aside money in your HSA.

Concierge Medicine and HSA

How Concierge Medicine and Health Savings Account (HSA) Complement Each Other?

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 membership fee. But you can still use it for paid services your concierge doctor offers. You can:

  • Reimburse yourself: If you paid cash for your concierge medicine membership, you could reimburse certain aspects of the membership fee (that account for specific services like diet counseling, mental coaching, etc.) yourself from your HSA.
  • Pay your concierge doctor directly with your HSA: This is applicable for any services offered by the concierge physician.

In any case, make sure to get an itemized bill from your doctor. Detailed records would come very useful should the IRS audit you.

How Receipts Can Help You Reimburse Your Concierge Membership Fee?

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.

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.

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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