A Hands-On Guide to Using My HSA to Pay for Concierge Medicine

As more people look for personalized, accessible healthcare options, concierge medicine has become an attractive alternative to traditional medical care. A common question for patients considering this type of care is: Can I use my HSA to pay for concierge medicine? This is a worthy question regarding this growing type of medical care. So how can Health Savings Accounts (HSAs) work in relation to concierge medicine and clarify the eligibility rules so you can make informed decisions?

Concierge medicine is fast becoming popular, but not all medical patients know this is an option, or even know what it is. Concierge medicine is a healthcare model where patients pay a membership fee—often called a retainer or subscription—in exchange for enhanced access to their physician. This includes longer appointments, direct communication, and in some cases, 24/7 availability. At Magnolia Collective Health, we offer concierge-focused family medicine, blending comprehensive care with unparalleled convenience for our patients.

How Does an HSA Work?

A Health Savings Account (HSA) is a tax-advantaged savings account designed to help individuals with high-deductible health plans (HDHPs) save for medical expenses. Funds deposited into an HSA are not subject to federal income tax at the time of deposit, and they can be used to pay for qualified medical expenses without penalty.

The key question here is: Are concierge medicine fees considered a qualified medical expense under HSA rules?

The IRS determines what is considered a “qualified medical expense” for HSAs. Eligible expenses generally include medical services such as office visits, diagnostics, and treatments. However, concierge medicine membership fees are typically not considered eligible medical expenses because they are seen as paying for access to care rather than care itself.

That said, you can use HSA funds to pay for actual medical services provided during your concierge visits, such as lab work, prescriptions, or procedures that are part of your care plan. For instance, at Magnolia Collective Health, while the membership fee may not be HSA-eligible, certain treatments and medical services provided during office visits may qualify for HSA payment.

If you’re considering using your HSA to cover concierge care, follow these steps to ensure compliance with IRS rules:

  • Separate Membership Fees from Medical Services:  Membership fees are considered a retainer for access to your physician and generally not HSA-eligible. However, the actual medical services provided during your visits can be reimbursed through your HSA. For example, if you need a flu shot or blood tests as part of your concierge care, these can be paid with HSA funds.
  • Request Itemized Bills: At Magnolia Collective Health, we provide patients with itemized bills to make it clear which portions of their care are HSA-eligible. Be sure to request an itemized bill from your concierge practice so you can correctly submit eligible expenses for HSA reimbursement.
  • Understand IRS Guidelines on HSA Eligibility: The IRS defines what qualifies as an eligible expense under Publication 502. Medical care includes amounts paid for the diagnosis, cure, mitigation, treatment, or prevention of disease. If your concierge doctor provides a service that meets these criteria, you can use your HSA funds to pay for it.
  • Keep Records of Your HSA Transactions: To avoid any issues with tax compliance, it’s essential to maintain clear records of how your HSA funds are being used. Retain receipts, itemized bills, and other documentation to prove that your expenses align with IRS rules.

While concierge medicine retainer fees may not qualify, here are examples of HSA-eligible expenses that you can incur during concierge care:

  • Office visits for medical issues (e.g., illness, chronic disease management)
  • Prescription medications
  • Diagnostic tests (e.g., blood work, X-rays)
  • Preventive care services (e.g., immunizations, cancer screenings)

At Magnolia Collective Health, we assist patients in navigating HSA-eligible services to ensure they can use their tax-advantaged funds where appropriate. We offer guidance on which parts of your care may be eligible for reimbursement from your HSA.

Can I Use My HSA for Direct Primary Care (DPC)?

Direct primary care (DPC) is often confused with concierge medicine, but there are differences. DPC practices generally charge lower monthly fees and may not offer the same level of personalized care as concierge practices. In both cases, membership fees are still considered ineligible for HSA reimbursement by the IRS, but you can use your HSA to cover qualified medical expenses incurred during visits.

In short, you cannot use your HSA to pay for concierge medicine membership fees, but you can use it to cover eligible medical services provided by your concierge physician. At Magnolia Collective Health, we work with patients to make healthcare costs as transparent and manageable as possible, including helping them understand how to utilize their HSAs for eligible expenses.

If you have further questions about how concierge medicine works with HSAs or want to learn more about our services, visit us at magnoliacollectivehealth.com or contact our office.

FAQs

No, concierge membership fees are typically not HSA-eligible because they are seen as payments for access rather than direct medical care.

You can use your HSA for medical services like office visits, treatments, tests, and prescriptions provided during concierge care.

Maintain detailed receipts and itemized bills that separate membership fees from medical services. Only submit charges for eligible services to your HSA.

By understanding the IRS rules and managing your HSA carefully, you can enjoy the benefits of concierge medicine without worrying about tax penalties or ineligible expenses.