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The Hill: The advantage of paying for medical care directly

Legislators have also taken notice of the benefits that come from direct care as well. More than two-thirds of states have implemented legislation that codifies DPC and ensures that they are not regulated as a form of insurance as interpreted by the Treasury. In fact, states like Oklahoma and Texas are seeking to make use of this model to improve quality of care and access for Medicaid beneficiaries in their states.

Federal lawmakers have become engaged as well, seeking to qualify DPC as a qualified medical expense under the tax law. Sen. Ted Cruz (R-Texas) and Rep. Chip Roy (R-Texas) have introduced identical bills to create more equality in the tax treatment between employers and employees that allow individuals to use pre-tax dollars for a direct care practice.

Insurance coverage in health care was intended to transfer risk should something catastrophic occur.

The products we have today resemble pre-paid medical care, as opposed to true insurance, and these have contributed to ever-increasing cost of coverage — which is why it’s often the case that paying cash is more affordable than using the insurance card in your wallet.

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