Unlocking Affordable Healthcare with Pre-tax Funds for Subscription Care

In today’s challenging healthcare landscape, cost remains a significant barrier preventing many individuals from accessing essential care. Despite the availability of health savings accounts (HSAs) and flexible spending accounts (FSAs), designed to enable employees to set aside money before tax to pay for healthcare costs, a considerable portion of pre-tax dollars often go unused. This untapped resource presents a unique opportunity to alleviate the financial burden of healthcare. By redirecting these funds towards subscription care, individuals can realize the dual benefits of enhanced access to vital healthcare services and reduced taxable income.

What are Direct Medical Care Arrangements

Direct Medical Care Arrangements (DMCAs) are a valuable aspect of healthcare funding. A DMCA is a monthly membership that an employer or patient can set up with a physician. The membership includes a defined set of medical services for a fixed annual or periodic fee that members can pay with pre-tax dollars from an FSA, HSA, or health reimbursement arrangement (HRA). 

Employers apportion pre-tax funds into employees’ accounts, reducing their taxable income while providing valuable healthcare benefits. Healthcare benefit plan members can allocate these funds towards various qualifying healthcare expenses, including subscription care bundles to cover primary care, mental health services, dental, vision, and preventive healthcare programs.

By encouraging the use of pre-tax funds for Subscription Care, employers unlock substantial cost savings and enhance healthcare access for employees. With highly customizable plan designs and numerous options, DMCAs offer a powerful tool to maximize the value of healthcare spending while empowering employees to prioritize their health and well-being.

Did you know? Workers forfeit an estimated $2 billion in unspent FSA funds annually, highlighting the potential impact of leveraging pre-tax dollars to fund Direct Medical Care Arrangements powered by Subscription Care.

The Scope of Subscription Care

Subscription Care simplifies the payment for a wide range of healthcare services tailored to meet employees’ unique needs. A subscription care platform offers access to comprehensive solutions ranging from primary care and mental health services to dental care and 6-month healthcare programs that prioritize employee wellness.

Unlike traditional fee-for-service models, subscription care providers charge a recurring monthly fee to cover most primary care, dental, or wellness services without the hassle of insurance billing. This model incentivizes providers to deliver top-tier care consistently and empowers patients to take a more proactive approach to their health.

Furthermore, embracing Subscription Care signals a commitment to enhancing employee satisfaction by facilitating access to optimal care options. Subscription Care represents a pivotal step towards empowering your workforce with customizable, value-driven health benefit options.

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Benefits of Utilizing Pre-tax Funds for Subscription Care

Deploying pre-tax funds, such as those from HSA and FSA accounts, for Subscription Care presents a wealth of benefits for employers and employees. Here’s how:

Cost Savings: With rising healthcare costs, many individuals skip crucial appointments due to financial constraints. Specialized services like behavioral therapy and orthodontics only compound these expenses. However, a subscription care plan empowers consumers to access essential, yet often uncovered, mental health, dental memberships, and vision care services while stretching their healthcare dollars further.

Increased Access: Pre-tax funds make preventive care more accessible and affordable for employees, leading to higher utilization of other healthcare services and better health outcomes. Individuals leave hundreds of dollars unspent in their DMCA accounts at the end of each year. Leveraging a subscription bundle ensures these funds are utilized for qualified expenses, with any surplus potentially applied to administrative costs for that year. 

Enhanced Employee Satisfaction: By funding Subscription Care with pre-tax dollars, employers provide valuable healthcare benefits previously out of reach for many employees. This strategic approach alleviates the financial burden of exorbitant healthcare expenses while significantly boosting employee satisfaction.

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Benefits of Utilizing Pre-tax Funds for Subscription Care

Allocating pre-tax funds for healthcare requires strict adherence to Internal Revenue Service (IRS) substantiation regulations and Department of Labor (DOL) guidelines. Employers must maintain meticulous records and ensure members utilize funds solely for eligible healthcare expenses.

Improve Compliance Efforts: Partnering with a subscription care platform like Accresa could help ensure adherence to IRS substantiation requirements and avoid potential penalties. Accresa provides robust technology and support to assist employers in administering DMCA memberships without hassle. Accresa’s platform auto-substantiates FSA, HRA, and HSA transactions for DMCA memberships and maintains an audit trail that makes it easier for employers to manage compliance while enhancing access to high-quality care.

Encourage Employee Participation: Employers can foster employee engagement and participation in DMCAs by providing transparent communication and educational resources on eligible expenses and mechanisms to access care. Accresa’s subscription care platform eliminates manual steps members make, answering multiple queries and providing documentation for qualifying expenses. The streamlined system creates a hassle-free experience that enhances participation in DMCA plans while improving healthcare access and employee satisfaction.

Leveraging pre-tax funds for Subscription Care offers many benefits, including cost savings, increased access to quality healthcare, and enhanced satisfaction. By incorporating Subscription Care into their DMCA strategy, employers can unlock affordable healthcare options that enhance employee well-being and streamline the administration of health benefits that promote organizational success.

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Accresa is the first payment technology platform to make direct primary care and other subscription healthcare models accessible within workplace benefit plans. Through our robust payments technology and easy-to-use administrative platform, we connect employers and their employees with a growing national network of primary care physicians, clinics, medical groups, and health systems all focused on our shared vision for delivering a better healthcare experience.

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