📣 Big News for DPC Patients! 🩺✨
Starting January 1, 2026, our rootsMD Direct Care Family Medicine patients with high-deductible insurance plans may use HSA (Health Savings Account) funds to pay for your Direct Primary Care membership! 🙌
You can use PRE-TAX dollars to invest in unrushed, relationship-based primary care with us — saving money AND supporting your health. 💸❤️
Our rootsMD patients have known that DPC is the best kept secret in healthcare for over 4 years. Now it can be even more cost-effective for many of you!
HSA accounts are “triple tax advantaged”:
✅ Tax-deductible contributions
✅ Tax-free investment growth
✅ Tax-free withdrawals for qualified medical expenses
THE DETAILS:
✨ The IRS now recognizes that DPC is *NOT an insurance plan and membership CAN be funded with pretax HSA dollars
✨ HSA funds of up to $150/month per individual, or $300/mo per family may be used toward DPC membership
✨ This allows patients the option to:
– pay lower premiums for a high deductible health plan (HDHP) that will help cover unexpected very high-cost healthcare needs like hospital stays, surgeries, etc
– use HSA dollars to help them pay for the bulk of their primary care needs via a membership relationship with an expertly trained DPC physician who offers unrushed continuity care, and who can assist them in accessing more cost-effective primary care
✨ Employers may now cover DPC agreements as a part of their health benefits plan, even if that plan is a high deductible health plan (HDHP) with an HSA
A Health Savings Account (HSA) is not only a great way to save for medical expenses—it can also be a powerful retirement savings tool. Here’s how:
🔑 Key Ways an HSA Can Be Used for Retirement:
1. Triple Tax Advantage
HSAs are unique in offering three major tax benefits:
- Tax-deductible contributions (or pre-tax through payroll)
- Tax-free growth on investments
- Tax-free withdrawals for qualified medical expenses
This gives it an edge over traditional 401(k)s and IRAs, which are only tax-deferred or tax-free in one direction.
2. Medical Expenses in Retirement
Healthcare is a major retirement cost. HSA funds can be used tax-free to cover:
- Medicare premiums (except Medigap)
- Long-term care services
- Dental, vision, and hearing care
- Copays, deductibles, and more
Using HSA funds for these expenses protects your other retirement accounts.
3. Penalty-Free Withdrawals After Age 65
After age 65, you can withdraw HSA funds for any purpose without a penalty:
- If used for non-medical expenses, you pay only ordinary income tax (like with a traditional IRA).
- If used for qualified medical expenses, it’s still tax-free.
This flexibility makes it a hybrid between an IRA and a health fund.
4. No Required Minimum Distributions (RMDs)
Unlike traditional IRAs or 401(k)s, HSAs do not require withdrawals at any age. You can let the funds grow indefinitely, which is helpful for long-term planning or leaving funds for a spouse.
5. Investment Potential
Once your HSA reaches a certain balance (varies by provider), you can invest the excess funds in mutual funds, ETFs, or other assets—just like a 401(k).
If you contribute the max annually and invest it over time, your HSA can grow substantially.
📊 Contribution Limits (2025)
- Individual: $4,300
- Family: $8,550
- Catch-up (age 55+): +$1,000
💡 Strategy Tip:
Use your HSA like a “health IRA”:
Let your HSA grow tax-free for future use
Pay out-of-pocket for current expenses if you can afford to
Save your receipts (you can reimburse yourself later)
