Direct Medical Care Freedom Act of 2025

This bill redefines certain medical care arrangements for tax purposes. It creates a new category called "direct medical care service arrangements," which are fixed-fee payments (like a monthly subscription) for primary or specialty care directly from doctors, nurse practitioners, or physician assistants - bypassing traditional insurance. These arrangements will no longer be treated as "health plans" under tax law, and their fees will qualify as deductible medical expenses. Employers must also report these fees on employees' W-2 forms. The changes apply to tax years starting after December 2024.