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Concierge Membership Tax Benefits

Temecula Medical Group Contents Concierge Membership Tax Benefits

 

Concierge Medicine Tax Benefits

 

At Temecula Medical Group, our Concierge Primary Care (Direct Primary Care or DPC) membership is designed to make personalized, accessible healthcare more affordable and straightforward. As part of our commitment to your well-being, we're excited to share how recent tax law changes can help you save money on your membership fees. This page explains the key tax advantages of DPC under IRS rules, including updates from the One Big Beautiful Bill Act (OBBBA, signed July 4, 2025).

Important Note:
We're not tax experts—THIS INFORMATION IS FOR EDUCATIONAL PURPOSES ONLY, BASED ON CURRENT IRS GUIDELINES. TAX BENEFITS DEPEND ON YOUR PERSONAL SITUATION, AND RULES CAN CHANGE. ALWAYS CONSULT A QUALIFIED TAX PROFESSIONAL OR ACCOUNTANT TO SEE HOW THESE APPLY TO YOU. TEMECULA MEDICAL GROUP TAKES NO RESPONSIBILITY FOR YOUR TAX IMPLEMENTATION OR OUTCOMES.

 

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Why Tax Benefits Matter for Your Concierge Membership

Your Concierge membership (starting at just $67/month for Prime PPO or $150/month for Prime self-pay) provides unlimited access to primary care, 24/7 provider support, same-day appointments, and discounted labs/X-rays—often at a fraction of traditional costs. But paying out-of-pocket can add up. Tax benefits make it even more affordable by letting you use pre-tax dollars or deduct fees as medical expenses.

Before January 1, 2026

  • DPC fees qualify as "medical care" under IRS Code Section 213(d), but only as an itemized deduction on your tax return (Schedule A, Form 1040).
  • You can deduct the amount exceeding 7.5% of your adjusted gross income (AGI). For example, if your AGI is $100,000 and you pay $1,800/year in fees, you could deduct $1,200 ($1,800 - 7.5% of $100,000 = $7,500 threshold).
  • HSA Limitation: You generally can't use Health Savings Account (HSA) funds for DPC fees, and DPC might disqualify you from HSA eligibility if it provides benefits before your high-deductible health plan (HDHP) deductible.
  • Why It Matters: This saves money if you itemize deductions and have high medical costs, but it's not "pre-tax" upfront—savings come at tax time, and many people don't itemize.

After January 1, 2026 (Thanks to OBBBA)

  • DPC fees become qualified HSA expenses (up to $150/month for individuals or $300/month for families), allowing tax-free withdrawals from your HSA.
  • No more HSA disqualification—pair your membership with an HDHP for full pre-tax benefits.
  • Itemized deductions still apply for amounts over caps or if you don't have an HSA.
  • Why It Matters: Pre-tax HSA payments can save 20–40% (depending on your tax bracket) right away. For a $100/month fee in a 25% bracket, that's ~$25/month in savings. This makes Concierge care feel like $50–$75/month, boosting affordability for preventive health and reducing overall healthcare spending.

These changes make DPC like ours a smart, tax-smart choice for long-term wellness. Now, let's break it down by your situation.

 

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What Do I Need to Know?

We've organized this by who you are, so you can jump to what's relevant. Focus: How to save on your membership fees through taxes, and what steps to take.

For Individuals (Employees or Non-Self-Employed)

  • Key Savings: Your DPC fees are qualified medical expenses. Pre-2026, deduct on Schedule A if over 7.5% AGI. Post-2026, use HSA funds tax-free (up to caps) if you have an HDHP.
  • HSA Setup: You don't need your employer—open an HSA independently through banks like Fidelity or HSA Bank (just show HDHP proof). Contribute pre-tax via payroll if your employer offers it (cafeteria plan), or personally and deduct on Form 1040 (above-the-line, no itemizing needed). 2025 limits: $4,300 self-only, $8,550 family (+$1,000 if 55+).
  • Employer Role: If your job offers an HDHP, ask about HSA contributions—they're tax-free to you. Otherwise, go solo.
  • Bottom Line: Post-2026, this could cut your effective membership cost in half. Pair with our Prime PPO plan ($67/month) for max value alongside insurance.

For Self-Employed Individuals

  • Key Savings: Same as individuals—itemized deduction pre-2026 (>7.5% AGI). Post-2026, HSA-eligible. Can't use the self-employed health insurance deduction (Section 162(l)) for DPC (that's for premiums only), but you might deduct as a business expense on Schedule C if tied to your work (e.g., staying healthy to run your business—get advisor approval).
  • HSA Setup: Set up independently (no "employer" needed). Contribute personally and deduct above-the-line on Form 1040 (Form 8889). No payroll option, but it reduces self-employment taxes indirectly.
  • Pro Tip: If you have employees, consider an Individual Coverage HRA (ICHRA) to reimburse your own fees tax-free.
  • Bottom Line: Great for freelancers—savings help offset variable income. Our family plans ($157–$355/month) fit busy self-employed lifestyles.

For Businesses (Employers Offering to Employees)

  • Key Savings: Deduct contributions as ordinary business expenses (Section 162). Tax-free to employees via HRAs (e.g., QSEHRA for small businesses). Pre- and post-2026, this reduces payroll taxes for everyone. Post-2026, fully HSA-compatible—no eligibility issues.
  • HSA Setup: Offer HSAs through a trustee (e.g., via your HDHP provider). Contribute as employer (deductible), or let employees contribute pre-tax via payroll. Must be "comparable" for all eligible staff to avoid penalties.
  • How to Implement: Structure as a fringe benefit—reimburse DPC fees tax-free. Small businesses: Use QSEHRA (up to $6,150/year individual in 2025). Any size: ICHRA.
  • Bottom Line: Attract talent with this perk—our business plans enhance recruitment while controlling costs. Employees save on taxes; you deduct everything.

 

What Does My Tax Accountant Need from Me to Document Savings?

To claim these benefits, keep solid records—your accountant will thank you! Provide:

  • Membership Contract/Receipts: Copy of your Temecula Medical Group agreement showing fixed monthly fees for primary care services (e.g., wellness exams, urgent care, no major coverage).
  • Payment Proof: Bank statements, credit card bills, or canceled checks for fees paid (prorate prepaid amounts to the service year).
  • HSA/HDHP Details (Post-2026): HSA statements showing contributions/withdrawals, and HDHP policy proving eligibility (no disqualifying coverage).
  • Income/Expense Summary: Your AGI, total medical expenses (aggregate DPC with others like copays), and W-2/1099 forms.
  • Business Tie-In (If Applicable): For self-employed/business, notes on how DPC supports your trade (e.g., "Maintains health for daily operations").
  • Forms to File: Schedule A (itemized medical), Form 8889 (HSA), Schedule C (business expense if qualifying). Your accountant handles these.

Pro Tip: Track in a simple spreadsheet—date, amount, description. This avoids audit hassles and maximizes deductions.

 

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Additional Things You Might Need to Know

  • Eligibility for DPC Tax Treatment: Our Concierge plans qualify as DPC—fixed fees for routine primary/preventive care by primary providers, no risk pooling or major event coverage. Confirm with your contract.
  • Combining with Insurance: DPC complements your PPO (like our Prime PPO option)—use for primary care, insurance for specialists/hospitals.
  • Prepaid Fees: Deduct in the year services are provided (prorate if spanning years).
  • Risks of Non-Compliance: Incorrect claims could trigger audits or penalties (e.g., 6% excise tax on excess HSA use). Always verify.
  • When to Act: For 2025 taxes (filed 2026), use pre-2026 rules. Plan for 2026 by opening an HSA now if HDHP-eligible.

Ready to get started? Schedule your free 30-minute consultation to discuss how our Concierge membership fits your life—and your taxes.

 

Resources

 

Disclaimers

Temecula Medical Group is a healthcare provider, not a tax or financial advisor. The information here is general and based on publicly available IRS guidance as of September 2025—it may not apply to your situation and is subject to change. We make no representations or warranties about tax outcomes, savings amounts, or eligibility. You are solely responsible for consulting a licensed tax professional to verify and implement any benefits. Misuse of this information could result in IRS penalties, audits, or disallowed deductions. This page does not constitute tax, legal, or financial advice. For personalized guidance, contact a CPA or use IRS resources. Our Concierge services are not health insurance and do not cover emergencies, hospitalizations, or specialists—see full disclaimers on our pricing page. All patient stories are fictionalized for illustration.