HSA Eligibility FAQ

Can I Use My HSA or FSA to Pay for My Lotus Membership?

Short answer: Yes, for most members on the Standard plan.

If you're on the $150 Standard (individual) or $200 Standard (family) membership tier, your Lotus membership fee is eligible to be paid with HSA, FSA, or HRA funds — per IRS Notice 2026-05, which authorizes Direct Primary Care arrangements under specific structures.

If you're on the Grandfathered plan ($165 individual or $220 family), or if you add Lotus Plus, those portions are not HSA-eligible for new contributions — but read on to understand why, and what your options are.

Which Plans Are HSA-Eligible?

Note: The Standard tier is HSA-eligible. The Grandfathered tier and Plus add-on are not. Grandfathered fees above the IRS cap may still be reimbursable from an existing HSA in some cases — consult your tax advisor.

Why the Difference?

IRS Notice 2026-05 sets a monthly cap of $150 for an individual and $300 for a family. Our $150 Standard and $200 Standard Family plans are both under those caps, so they're HSA-eligible. (These caps are adjusted annually by the IRS for inflation.)

Our $165 Grandfathered tier is priced above the $150 individual cap and bundles some services outside the IRS "primary care only" definition — so it isn't HSA-eligible for new contributions.

Our Lotus Plus add-on isn't HSA-eligible because HSA rules require the arrangement to cover solely primary care services. Plus adds capabilities beyond primary care — body-composition dashboard, supplement discounts, quarterly labs, and procedure discounts. Good news: your underlying $150 Standard membership stays HSA-eligible even if you add Plus. Only the Plus fee is off-HSA.

What About FSAs?

FSA rules are similar but plan-dependent. DPC memberships that qualify for HSA are generally FSA-eligible too — so the same tiers apply. However, your specific FSA plan may have different rules. Check with your employer's benefits administrator before signing up.

How Do I Actually Pay With My HSA?

Need help with setup? Contact Savannah at admin@lotusdirectcare.com or (262) 242-0700.

What Documentation Do I Need?

Keep these three items for your tax records:

1. Monthly statement from Hint (our billing platform) — shows membership fee and charge date.
2. Copy of your membership agreement — proves you're a Lotus Direct Care member.
3. Receipt for any one-time charges — initiation fee, lab fees, or procedure fees (if applicable).

These three items satisfy IRS record-keeping for HSA-eligible medical expenses. You don't need to file anything with Lotus — just keep copies for yourself.

Can I Switch From Grandfathered to Standard for HSA Eligibility?

Yes — you can switch anytime.

If you're on the Grandfathered plan and want HSA eligibility, you can move to Standard at any time. No waiting period, no penalty.

• Your price drops ($165→$150 individual or $220→$200 family) — you save money.
• Your membership becomes HSA-eligible.
• Your scope narrows slightly — you lose access to some broader services that made the Grandfathered plan fall outside the safe harbor.
• Important: Once you switch to Standard, you lose grandfather protection. If Lotus raises prices in the future, your Standard rate may go up.

Talk to Savannah before you switch: admin@lotusdirectcare.com or (262) 242-0700.

What About Lotus Plus?

Lotus Plus is an add-on, not a membership — and it's never HSA-eligible.

The good news: your Standard membership ($150/$200) stays HSA-eligible even if you add Plus. Only the Plus fee ($129/$199) is not HSA-eligible.

Commitment: Lotus Plus requires a 6-month minimum term to ensure you have enough time to fully benefit from the integrative services. After 6 months, you can cancel with 30 days' written notice.