You've been contributing to your Health Savings Account for years. You've been strategic about it by maximizing contributions, investing the balance, treating it like a retirement account for healthcare. But when it comes to actually using those funds, the options have always felt limited. Prescriptions. Lab work. The occasional specialist copay.
That changed on January 1, 2026.
For the first time, your HSA can pay for Direct Primary Care membership, meaning you can now use pre-tax dollars for unlimited access to your doctor. No copays. No per-visit charges. Just one flat monthly fee, paid from your HSA.
If you've been looking for a smarter way to use your HSA while getting better healthcare, this is it.
What Is Direct Primary Care?
Direct Primary Care is a membership-based healthcare model where you pay a flat monthly fee for unlimited access to your primary care physician. At Halcyon Health DPC in Irvine, CA, adult membership costs $119 per month and includes unlimited office visits, same-day appointments, and direct physician access via phone, text, or email.
Unlike traditional insurance-based practices, DPC eliminates per-visit copays and gives you extended visits (30-60 minutes instead of the typical 10-minute rushed appointment). Your doctor has time to actually listen—and you have a real relationship with the person managing your health.
What Changed on January 1, 2026?
The One Big Beautiful Bill Act (H.R. 1), signed into law on July 4, 2025, made DPC membership fees an HSA-qualified expense starting January 1, 2026. The IRS issued Notice 2026-05 providing detailed guidance on how this works.
The key details:
| Membership | Monthly Fee | HSA Status | |
|---|---|---|---|
| Adult | $119/month | ✓ HSA ELIGIBLE Under $150 limit | |
| Child (under 18) | $39/month | ✓ HSA ELIGIBLE Under $150 limit | |
| Family (2 adults + 2 children) | $289/month | ✓ HSA ELIGIBLE Under $300 limit |
| Your Tax Bracket | Annual Cost | Tax Savings | Free Months Equivalent |
|---|---|---|---|
| 22% | $1,428 | $314 | 2.6 months |
| 24% | $1,428 | $343 | 2.9 months |
| 32% | $1,428 | $457 | 3.8 months |
| 35% | $1,428 | $500 | 4.2 months |
If you're in the 24% tax bracket, paying with your HSA is like getting nearly three months of membership free every year.
The Triple Tax Advantage
- Contributions are pre-tax — reduces your taxable income
- Growth is tax-free — investments grow without tax drag
- Withdrawals are tax-free — when used for qualified expenses like DPC
Your DPC membership is now funded with money that was never taxed, grew without being taxed, and is spent without being taxed.
The Triple Tax Advantage, Explained
HSAs offer something no other account does: a triple tax benefit. Here's how it applies to DPC:
1. Contributions are pre-tax The money you put into your HSA reduces your taxable income. If you contribute $3,850 (the 2026 individual limit) and you're in the 24% bracket, you save $924 in federal taxes just by contributing.
2. Growth is tax-free Any interest or investment gains in your HSA grow without being taxed. Many HSA holders invest their balance for long-term growth.
3. Withdrawals for qualified expenses are tax-free When you use HSA funds for qualified medical expenses—now including DPC membership—you pay no tax on the withdrawal.
DPC membership now enjoys all three tax advantages. Your healthcare membership is funded with money that was never taxed, grew without being taxed, and is spent without being taxed.
How to Pay for DPC with Your HSA
Setting this up takes about five minutes. Here are your options:
Option 1: Pay directly with your HSA debit card Most HSAs provide a debit card linked to your account. Simply provide this card as your payment method when you enroll in DPC, and your monthly membership fee will be automatically charged to your HSA.
Option 2: Reimburse yourself from your HSA If you prefer to pay with a regular credit card (perhaps for points or cash back), you can reimburse yourself from your HSA after the fact. Keep your membership invoices as documentation, transfer the amount from your HSA to your checking account, and you're done.
Do you need special paperwork? No. The IRS does not require a special form to use your HSA for DPC. Simply keep your membership invoices as documentation in case of audit.
Can You Still Contribute to Your HSA If You Have DPC?
Yes. Previously, DPC could affect HSA eligibility. The new law specifically allows individuals with HSA-compatible HDHPs to also have qualifying DPC arrangements without losing HSA eligibility.
You can contribute to your HSA, invest the balance, AND use it to pay for your DPC membership—all at the same time.
How DPC and Your HDHP Work Together
If you have an HSA, you likely have a high-deductible health plan. Here's how DPC fits into that picture:
Your HDHP Covers
- Specialist visits
- Hospitalizations
- Surgeries
- Catastrophic events
- Prescription drug coverage
Your DPC Membership Covers
- In office primary care visits (no copays)
- Same-day and next-day appointments
- Extended visits (30-60 minutes)
- Direct physician access via phone, text, email
- Annual physicals and preventive care
- Chronic disease management
- On-site pharmacy with wholesale pricing
- In-office testing (EKG, spirometery, suture/IUD removal)
The combination often saves money compared to traditional insurance while providing dramatically better primary care access. You use DPC for everyday healthcare needs and your HDHP for the big stuff.
Is HSA + DPC Right for You?
This combination works especially well if you:
Already have an HSA and are looking for qualified expenses
Have a high-deductible health plan and pay out-of-pocket for primary care
Value having time with your doctor (not rushed 10-minute appointments)
Want same-day access when you're sick instead of waiting weeks
Prefer predictable monthly costs over surprise medical bills
Are self-employed and want to maximize tax advantages
Want direct communication with your doctor via text, email, or phone
Frequently Asked Questions
Can I use my existing HSA balance for DPC? Yes. You can use funds already in your HSA to pay for DPC membership starting January 1, 2026.
What if my employer doesn't know about this change? Share this information with your HR department. Many employers are unaware that DPC is now HSA-eligible. This could become a valuable voluntary benefit option.
Is the enrollment fee HSA-eligible too? Consult your tax advisor, but generally, if the enrollment fee is part of accessing a qualified medical service, it may be eligible. The monthly membership fee is clearly qualified.
What about sports medicine or other specialized services? Medically necessary services are typically HSA-eligible. At Halcyon Health, Dr. Talha Khan offers sports medicine, PRP therapy, and orthobiologics. Whether these specific services are HSA-eligible depends on medical necessity. Consult your tax advisor for your situation.
Can I use my FSA instead of HSA? Potentially, yes. Flexible Spending Accounts can also be used for qualified medical expenses. Check with your FSA administrator about DPC eligibility.
How to Get Started
Ready to use your HSA for better primary care? Here's what to do:
Step 1: Confirm you have an active HSA (check your account balance and debit card)
Step 2: Schedule a free meet and greet with Halcyon Health to learn about membership
Step 3: Enroll and provide your HSA debit card as payment
Step 4: Start using your direct primary care access
About Halcyon Health DPC
Halcyon Health DPC is a Direct Primary Care medical practice located at 19712 MacArthur Blvd Suite 100, Irvine, California 92612. Founded in March 2016, the practice serves over 1,500 members in Orange County.
Physicians accepting new patients:
Dr. Lauri Seymour, MD (Internal Medicine)
Dr. Talha Khan, MD (Family Medicine & Sports Medicine)
Dr. Jodi Spangler, MD (Family Medicine)
Schedule a free meet and great to learn how DPC membership works.
Schedule Free Consultation Call (949) 486-8530info@halcyonhealthdpc.com
Service area: Irvine, Newport Beach, Tustin, Costa Mesa, Lake Forest, Mission Viejo, and surrounding Orange County communities.
This article was last updated February 2026. Tax situations vary. Consult your tax advisor for guidance specific to your circumstances.