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MWL-Wellness Concierge Membership Tax Benefits

Temecula Medical Group Contents MWL-Wellness Concierge Membership Tax Benefits

 

MWL PROGRAM     MEMBERSHIP PRICING      EXPLAINED      TAX BENEFIT

Concierge Medicine Tax Benefits

 

At Temecula Medical Group, our Concierge Primary Care (Direct Primary Care or DPC) memberships, including the Medical Weight Loss Wellness (MWL-Wellness) carve-out, are designed to make personalized, accessible healthcare more affordable and straightforward. Whether you choose our full Concierge PRIME plan for comprehensive primary care or the focused MWL-Wellness option for weight optimization, we're excited to share how recent tax law changes can help you save on fees. This page explains the key tax advantages 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 memberships (starting at $67/month for PRIME PPO, $119/month for MWL-Wellness, or $150/month for PRIME self-pay) provide unlimited access to care, 24/7 provider support, same-day appointments, and discounted labs/X-rays—often at a fraction of traditional costs. For MWL patients, this includes weight management-specific services like labs, prescriptions, optimization plans, and monitoring for imbalances affecting energy, mood, or well-being. 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

  • Membership fees, including MWL-Wellness, qualify as "medical care" under IRS Code Section 213(d) if prescribed for diagnosed conditions (e.g., obesity or related imbalances), allowing itemized deductions on 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 $1,428/year in MWL fees ($119/month), you could deduct $678 ($1,428 - 7.5% of $100,000 = $7,500 threshold).
  • HSA Limitation: You generally can't use Health Savings Account (HSA) funds for fees, and memberships might disqualify you from HSA eligibility if they provide benefits before your high-deductible health plan (HDHP) deductible.
  • Why It Matters: This saves money if you itemize and have high medical costs, but it's not "pre-tax" upfront—savings come at tax time, and many people don't itemize. For MWL, ensure documentation shows medical necessity (e.g., lab results for imbalances).

After January 1, 2026 (Thanks to OBBBA)

  • Fees become qualified HSA expenses (up to $150/month for individuals or $300/month for families), allowing tax-free withdrawals from your HSA. This applies to MWL-Wellness as a DPC carve-out focused on weight management.
  • 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 $119/month MWL fee in a 25% bracket, that's ~$30/month in savings. This makes care feel like $89/month, boosting affordability for preventive hormone health and reducing overall spending.

These changes make our memberships, including MWL as a targeted option for those wanting only hormone support, 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 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.
  • MWL-Specific: If using MWL-Wellness (a carve-out from PRIME for weight-focused care), fees for consultations, labs, and prescriptions may qualify if tied to medical needs like diabetes or low energy/fatigue. Track separately if upgrading to full PRIME.
  • Action Steps: Keep receipts/invoices showing medical purpose. Use tax software or Form 1040/Schedule A. For HSA (post-2026), confirm with your plan administrator that our DPC structure meets OBBBA rules.

For Self-Employed Individuals

  • Key Savings: As a self-employed individual, your Concierge membership fees (including MWL-Wellness as a focused carve-out for hormone optimization) qualify as "medical care" under IRS Code Section 213(d), allowing itemized deductions on Schedule A (Form 1040) for amounts exceeding 7.5% of your adjusted gross income (AGI) pre-2026; note that these fees do not qualify for the self-employed health insurance deduction (Form 1040, line 16), which is reserved for actual health insurance premiums.
  • HSA Opportunities Post-2026: Under OBBBA, you can use HSA funds tax-free for membership fees (up to $150/month individual cap) without disqualifying your HSA eligibility, as long as you have a high-deductible health plan (HDHP); self-employed HSA contributions are deductible above the line on Form 1040, reducing your AGI and self-employment tax liability.
  • MWL-Specific Considerations: For MWL-Wellness ($119/month), deduct fees related to hormone labs, prescriptions, and consultations as medical expenses if documented for treating imbalances (e.g., low energy or mood issues like Alex's concerns); if upgrading to full PRIME (+$31/month for $150 total), the entire amount qualifies similarly, potentially offering broader deductions for integrated care like preventive check-ins.
  • Business Expense Potential: In some cases, fees may be deductible as ordinary and necessary business expenses under Section 162 if they directly support your ability to work (e.g., maintaining health for a demanding schedule like Robert's chronic issues), but this requires substantiation and is typically treated as personal medical on Schedule A—consult a tax professional to evaluate.
  • Action Steps: Track all receipts and invoices showing medical purpose (e.g., for Sarah's family plan covering infections or injuries); use tax software like TurboTax for Schedule A or HSA tracking; if self-employed with employees, consider how pretax payments might be classified as a benefit plan requiring Form 5500 filing.

 

Things You Need to Know

  • Eligibility: Benefits apply only if fees are for "medical care" (diagnosed/treatment-focused). Purely elective MWL may not qualify—consult your provider for documentation.  

    MWL, when prescribed for medical purposes (e.g., treating hormone imbalances, menopause symptoms, low testosterone due to aging or health conditions, or optimizing wellness under medical supervision), qualifies as "medical care" under IRS Section 213(d). 

    MWL-Wellness is a self-pay membership carve-out from the broader Concierge Primary Care, which is structured as DPC (Direct Primary Care) program.

  • Timing: As of September 2025, use itemized deductions; HSA starts 2026. State taxes may vary (e.g., CA follows federal for medical deductions).
  • Caps/Limits: HSA caps at $150/individual; excess can be itemized. Family plans (if upgrading from MWL to PRIME) count toward $300 cap.
  • Documentation: Save all bills, lab reports, and prescriptions to substantiate claims during audits.

 

Things Your Accountant Needs to Know

  • IRS Code: Section 213(d) defines medical expenses (including MWL for imbalances); OBBBA amends HSA rules (Section 223) for DPC.
  • Audit Risks: Emphasize medical necessity—provide diagnosis codes if requested. DPC/MWL must not be deemed "insurance" to avoid issues.
  • Software/Tools: Use TurboTax/HR Block for Schedule A; HSA trackers for post-2026 reimbursements.
  • Updates: Monitor IRS.gov for OBBBA guidance; rules could evolve.

 

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Additional Considerations

  • FSA Compatibility: Limited/flexible spending accounts may cover fees pre-2026 if employer allows; check plan docs.
  • Upgrading from MWL: If starting with MWL-Wellness ($119/month) and adding PRIME (+$31/month total $150), the full amount qualifies, offering broader tax value.
  • State/Local: CA allows similar deductions; no additional codes needed, but confirm with local tax pro.

 

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 additional disclaimers on our pricing page. All patient stories are fictionalized for illustration.

This is not tax advice. TAX BENEFITS VARY BY INCOME, FILING STATUS, AND HEALTH DETAILS. WE DON'T GUARANTEE SAVINGS OR ELIGIBILITY. RELIANCE ON THIS INFO IS AT YOUR RISK. FOR PERSONALIZED GUIDANCE, CONSULT A TAX ADVISOR. TEMECULA MEDICAL GROUP ISN'T LIABLE FOR TAX ERRORS, PENALTIES, OR OUTCOMES.