[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1140 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 1140
To amend the Internal Revenue Code of 1986 to allow individuals with
direct medical care service arrangement to remain eligible individuals
for purposes of health savings accounts, and for other purposes.
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IN THE HOUSE OF REPRESENTATIVES
February 7, 2025
Mr. Roy (for himself, Mr. Biggs of Arizona, and Mr. Moore of Alabama)
introduced the following bill; which was referred to the Committee on
Ways and Means
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A BILL
To amend the Internal Revenue Code of 1986 to allow individuals with
direct medical care service arrangement to remain eligible individuals
for purposes of health savings accounts, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Direct Medical Care Freedom Act of
2025''.
SEC. 2. TREATMENT OF DIRECT MEDICAL CARE SERVICE ARRANGEMENTS.
(a) In General.--Section 223(c)(1) of the Internal Revenue Code of
1986 is amended by adding at the end the following new subparagraph:
``(E) Treatment of direct medical care service
arrangements.--
``(i) In general.--A direct medical care
service arrangement shall not be treated as a
health plan for purposes of subparagraph
(A)(ii).
``(ii) Direct medical care service
arrangement.--For purposes of this paragraph--
``(I) In general.--The term `direct
medical care service arrangement'
means, with respect to any individual,
an arrangement under which such
individual is provided medical care
provided by medical care practitioners
if the sole compensation for such care
is a fixed periodic fee.
``(II) Application to primary care,
specialty care, etc.--An arrangement
shall not fail to be treated as a
direct medical care service arrangement
merely because such arrangement is
restricted to any subset of medical
care or medical care practitioners.
``(iii) Medical care practitioner.--For
purposes of this paragraph, the term `medical
care practitioner' means an individual who is--
``(I) a physician (as defined in
section 1861(r)(1) of the Social
Security Act), or
``(II) a nurse practitioner,
clinical nurse specialist, or physician
assistant (as such terms are defined in
section 1861(aa)(5) of the Social
Security Act).
``(iv) Medical care.--For purposes of this
paragraph, the term `medical care' has the
meaning given such term in section 213(d)).''.
(b) Direct Medical Care Service Arrangement Fees Treated as Medical
Expenses.--Section 223(d)(2)(C) of such Code is amended by striking
``or'' at the end of clause (iii), by striking the period at the end of
clause (iv) and inserting ``, or'', and by adding at the end the
following new clause:
``(v) any direct medical care service
arrangement.''.
(c) Reporting of Direct Medical Care Service Arrangement Fees on W-
2.--Section 6051(a) of such Code is amended by striking ``and'' at the
end of paragraph (16), by striking the period at the end of paragraph
(17) and inserting ``, and'', and by inserting after paragraph (17) the
following new paragraph:
``(18) in the case of a direct medical care service
arrangement (as defined in section 223(c)(1)(E)(ii)) which is
provided in connection with employment, the aggregate fees for
such arrangement for such employee.''.
(d) Effective Date.--The amendments made by this section shall
apply to months beginning after December 31, 2024, in taxable years
ending after such date.
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