Regulations for health care arrangements; The Internal Revenue Service (IRS) issues proposed regulations that address direct primary care (DPC) arrangements and health care sharing ministry memberships (HCSM). As per the details, individuals can get assistance related to the treatment of certain medical care arrangements.
IRS proposed regulations cover these medical care arrangements under section 213 of the Internal Revenue Code. Individuals can take an itemized deduction for expenses for medical care, including insurance for medical care, under Section 213 of the Code. Furthermore, itemized deduction can be taken to the extent the expenses exceed 7.5% of adjusted gross income (AGI) of the individual.
Details of Proposed Regulations for Health Care Arrangements
The IRS proposes new rules and regulations to address direct primary care (DPC) arrangements and health care sharing ministry (HCSM) memberships. The individuals can follow IR-2020-116 to get guidance about following health care arrangements:
- Under section 213 of the Code, Payments for DPC arrangements are considered as expenses for medical care. As these payments are for medical care purpose, an employee may be reimbursed for DPC arrangement payments. Generally, his/her employer provides a health reimbursement arrangement (HRA).
- Under section 213 of the Code, Payments for membership in a HCSM are considered as expenses for medical care. As these payments are for medical care purpose, an employee may be reimbursed for HCSM membership payments. Here also, a health reimbursement arrangement (HRA) is provided by the employer of the employee.
Executive Order 13877 resulted in the formation of proposed regulations for health care arrangements. The same order directs the Secretary of the Treasury, to the extent consistent with law, to “propose regulations to treat expenses related to certain types of arrangements. Direct primary care arrangements and healthcare sharing ministries are potentially included in these health care arrangements. Under Section 213(d)” of the Code, all these health care arrangements including DPC and HCSM are considered as eligible medical expenses. If you further want any help regarding your Medicare rights in USA, please call Black Ink representative.