HR 1140

This bill, the Direct Medical Care Freedom Act of 2025, amends tax laws to allow individuals participating in certain direct medical care service arrangements to continue to utilize health savings accounts (HSAs). Specifically, it defines ‘direct medical care service arrangement’ as an arrangement where a medical care practitioner receives a fixed periodic fee for their services, and expands the types of arrangements eligible for HSA benefits. The bill also clarifies how fees paid for these arrangements are treated for tax purposes and requires reporting of these fees on W-2 forms.