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I'll give you the short version of this bill.
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Adds a new subparagraph (E) to 26 U.S.C. 223(c)(1) defining 'direct medical care service arrangement' and providing that such arrangements are not treated as health plans for purposes of subparagraph (A)(ii); also amends 26 U.S.C. 223(d)(2)(C) by adding a new clause (v) to treat fees for direct medical care service arrangements as medical expenses.
Amends 26 U.S.C. 6051(a) by adding a new paragraph (18) requiring employers to report on Form W–2 the aggregate fees for any direct medical care service arrangement provided in connection with employment.
Adds a new rule in the Internal Revenue Code to define and tax‑treat “direct medical care service arrangements.” It says these arrangements (and the practitioners who provide them) are not treated as a health plan for the cited tax provision, allows the arrangement fees to be treated as medical expenses for tax purposes, and requires employers to show aggregate fees on employees’ W‑2 forms when the arrangement is provided in connection with employment. The section also establishes an effective date.
Referred to the House Committee on Ways and Means.
Introduced February 7, 2025 by Charles Roy · Last progress February 7, 2025