H.R. 365 – Primary Care Enhancement Act of 2017

AI-Generated Summary

Updated April 15, 2026 at 11:16 AM UTC

The Primary Care Enhancement Act of 2017 changes the tax code so that direct primary care (DPC) arrangements—where a person pays a regular fee for primary‑care services only—are no longer considered a health insurance plan. It also lets the periodic fees paid to primary‑care doctors be counted as "medical care" for tax purposes. The changes affect individuals who use DPC services and the primary‑care providers who receive those fees.

Key Provisions

Adds a new rule stating that a DPC arrangement paid for with a fixed periodic fee is not treated as a health plan or insurance under the tax code.
Amends the definition of "medical care" to include periodic fees paid to a primary‑care physician for a set of primary‑care services, allowing those fees to be deductible as medical expenses.
Both changes apply to taxable years that begin after the law is enacted.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

January 6, 2017

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HouseIntro Referral

Introduced in House

January 6, 2017

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

January 6, 2017

Bill Text

Latest available legislative text

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Introduced in HouseIssued January 6, 2017

I

115th CONGRESS

1st Session

H. R. 365

IN THE HOUSE OF REPRESENTATIVES

January 6, 2017

Mr. Paulsen (for himself, Mr. Blumenauer, and Mr. Dent) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to provide for the treatment of certain direct primary care service arrangements and periodic provider fees.

1.

Short title

This Act may be cited as the Primary Care Enhancement Act of 2017.

2.

Treatment of direct primary care service arrangements

(a)

In general

Section 223(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(6)

Treatment of direct primary care service arrangements

An arrangement under which an individual is provided coverage restricted to primary care services in exchange for a fixed periodic fee or payment for such services—

(A)

shall not be treated as a health plan for purposes of paragraph (1)(A)(ii), and

(B)

shall not be treated as insurance for purposes of subsection (d)(2)(B).

.

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

3.

Certain provider fees to be treated as medical care

(a)

In general

Section 213(d) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(12)

Periodic provider fees

The term medical care shall include periodic fees paid to a primary care physician for a defined set of primary care medical services provided on an as-needed basis.

.

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.