State DPC Laws Overview¶

Overview¶

Direct Primary Care exists in a regulatory space that has evolved significantly over the past decade. Most states have enacted legislation clarifying that DPC is not insurance, providing legal certainty for physicians and patients. Understanding your state's specific requirements is essential before launching a DPC practice.

This guide provides an overview of the state regulatory landscape and guidance on researching your specific state's requirements.

Prerequisites¶

• Awareness that DPC regulations vary by state
• Understanding that you need state-specific legal guidance
• Commitment to operating within regulatory requirements

The Regulatory Question¶

Why State Laws Matter¶

The core regulatory question for DPC has been: Is DPC health insurance?

If DPC were classified as insurance, practices would need to: - Be licensed as insurers - Maintain reserves - Meet insurance regulatory requirements - Essentially, be unable to operate as small practices

The DPC movement's success: Most states have now passed laws explicitly clarifying that DPC is NOT insurance when structured properly.

What State Laws Typically Do¶

DPC-enabling legislation generally: 1. Defines Direct Primary Care agreements 2. Exempts qualifying DPC agreements from insurance regulation 3. Specifies required disclosures in DPC agreements 4. May set limits on services covered under the exemption

State Law Status¶

States with DPC-Specific Legislation¶

As of 2026, 33 states have enacted DPC-specific legislation; Alaska (SB 45 of 2024, codified at AS 21.03.025) was the 33^rd. This landscape continues to evolve.

States with DPC laws (33):

Two statutes work differently. Oregon does not exempt DPC from insurance law; it requires the practice to be certified by the Department of Consumer and Business Services and to disclose that the agreement is not insurance. Utah exempts "medical retainer agreements" from its insurance code but requires a written disclaimer. Several other states have since renamed or widened their statutes to "direct health care" or "direct medical care" agreements (Florida, Iowa, Maine, Tennessee, West Virginia); the citations above are to the current sections.

Not on the list, despite what older summaries say: Connecticut and Hawaii have no DPC statute. South Carolina's H.3966 has been pending since February 2025. Wisconsin's SB 4 was vetoed on 2025-08-08 and the veto was sustained on 2026-05-13.

How this list was checked: On 2026-09-22 every entry was checked against the statute on the state legislature's official site (Indiana against secondary publishers, because the official site could not be fetched) and against the DPC Frontier state tracker. No additional state with an enacted DPC statute was found. Read your own state's statute before relying on it; the text, not this table, governs.

Note: This list changes as new legislation passes. Always verify current status for your state.

States Without Specific DPC Laws¶

Some states have no DPC-specific legislation but may still allow DPC under other legal theories or interpretations. In these states: - DPC may operate in a gray area - Extra caution and legal counsel is advised - The state may simply not have addressed the question

Researching Your State¶

Steps: 1. Search "[Your State] Direct Primary Care law" 2. Check your state medical association's position/resources 3. Review state insurance department guidance 4. Consult the DPC Alliance state resources 5. Engage a healthcare attorney familiar with your state

Common Requirements in State Laws¶

Agreement Requirements¶

Most state DPC laws require agreements to include specific disclosures:

Typical Required Disclosures: - Statement that the agreement is NOT health insurance - Description of services covered - Monthly fee amount and terms - Term of agreement (duration) - Cancellation/termination provisions - Statement recommending patient obtain insurance for services not covered

Example Required Language (varies by state):

"This agreement does not constitute health insurance and is not intended to replace health insurance. This agreement does not qualify as minimum essential coverage under the Affordable Care Act."

Service Limitations¶

Some state laws limit what services can be included in DPC agreements while maintaining the insurance exemption:

Common limitations: - Primary care services only - No inpatient or hospital services - No specialty services outside primary care scope

Practitioner Requirements¶

Some states specify who can operate a DPC practice: - Must be licensed physician (MD/DO) - May include NPs, PAs under certain structures - May require specific business entity types

State-Specific Considerations¶

Corporate Practice of Medicine¶

Some states prohibit corporations from practicing medicine or employing physicians. This affects: - Entity structure choices - Who can own the practice - Management arrangements

States with strong corporate practice restrictions: - California - Texas - New York - Illinois (hospitals may employ physicians: Berlin v. Sarah Bush Lincoln Health Center, 179 Ill. 2d 1 (1997)) - Others

Implication: In these states, only licensed physicians can typically own a medical practice. Consult with a healthcare attorney about compliant structures.

Fee Splitting¶

Some states prohibit fee splitting between physicians and non-physicians. This can affect: - Management company arrangements - Referral arrangements - Profit-sharing structures

State Medical Board Rules¶

Beyond DPC-specific legislation, state medical boards may have rules affecting: - Practice advertising - Scope of practice - Documentation requirements - Patient abandonment provisions - Telehealth across state lines

Medicare Considerations¶

DPC and Medicare¶

Treating Medicare beneficiaries in a DPC practice is complex:

Key Issues: - Medicare patients can join DPC practices - But you cannot charge for services that Medicare would cover - Membership must be for non-covered services OR - You must opt-out of Medicare

Options:

Opt-Out Process: - Submit the affidavit to your Medicare Administrative Contractor (MAC) (42 CFR 405.410(b)) - Must have private contracts with Medicare patients - Applies to all Medicare patients for 2 years (auto-renews) - Cannot bill Medicare for any services during opt-out period, with one exception: emergency or urgent care furnished to a beneficiary who has not signed a private contract must be billed to Medicare, and you may not charge more than the limiting charge (42 CFR 405.440(b)) - More information: 42 CFR Part 405, Subpart D, the CMS opt-out affidavit dataset, and this kit's Medicare Opt-Out Guide

Recommendation: If you want to serve Medicare patients in a clean DPC model, opt-out is often the clearest path. Consult with a healthcare attorney experienced in Medicare.

Medicaid¶

Medicaid rules are state-specific. Most DPC practices do not accept Medicaid due to: - Complexity of regulations - Restrictions on patient payments - Low reimbursement rates

If you want to serve Medicaid patients, research your state's specific Medicaid rules.

Building Your Compliance Framework¶

Step 1: Research Your State¶

Information Sources: - State legislature website (search DPC, direct primary care) - State medical association - State insurance department - DPC Alliance resources - Healthcare attorney

Questions to Answer: - Does my state have DPC-specific legislation? - What disclosures are required in agreements? - Are there service limitations? - Are there fee limitations? - What entity structures are permitted? - What are the corporate practice of medicine rules?

Step 2: Review Medical Board Requirements¶

Check: - Licensing requirements and status - Practice notification requirements - Advertising rules - Documentation requirements - Telehealth rules (especially for serving patients in other states) - Prescribing regulations

Step 3: Consult a Healthcare Attorney¶

This is important. A few hundred dollars for legal review is worth: - Confidence in your structure - Compliant membership agreements - Understanding of pitfalls - Protection from regulatory issues

Find an attorney who: - Specializes in healthcare law - Understands DPC specifically - Is licensed in your state - Has worked with small practices

DPC-Specific Attorneys: The DPC community has identified attorneys who understand the model. Ask in DPC forums or contact DPC Alliance for referrals.

Step 4: Structure Accordingly¶

Based on your research: - Choose appropriate entity structure - Draft compliant membership agreements - Implement required disclosures - Decide on Medicare approach - Set up practice within regulatory requirements

Common Compliance Mistakes¶

Mistake 1: Assuming All States Are the Same¶

Problem: Requirements vary significantly. Solution: Research your specific state before launching.

Mistake 2: Skipping Legal Review¶

Problem: DIY agreements may miss required language. Solution: Have a healthcare attorney review your membership agreement.

Mistake 3: Including Prohibited Services¶

Problem: Some state laws limit what DPC can cover while maintaining insurance exemption. Solution: Understand your state's limitations.

Mistake 4: Ignoring Medicare Rules¶

Problem: Improper Medicare billing or charging can create serious legal issues. Solution: Decide on clear approach (opt-out or no Medicare patients); consult attorney.

Mistake 5: Not Maintaining Compliance¶

Problem: Laws change; staying compliant requires attention. Solution: Stay connected to DPC community; review requirements periodically.

Staying Current¶

DPC Legislative Landscape Changes¶

DPC legislation continues to evolve: - New states add DPC laws - Existing laws may be amended - Federal legislation may eventually address DPC

How to Stay Informed¶

• Join DPC Alliance or similar organizations
• Participate in DPC online communities
• Monitor your state medical association updates
• Follow DPC Frontier and similar news sources
• Attend DPC conferences when possible

Checklist: State Compliance¶

Research¶

• Identify if your state has DPC-specific legislation
• Read the actual statute/law
• Check state insurance department guidance
• Review state medical board requirements
• Research corporate practice of medicine rules
• Understand Medicare options and rules

Legal¶

• Identify healthcare attorney familiar with DPC
• Have attorney review entity structure plan
• Have attorney review membership agreement
• Understand required disclosures for your state
• Document compliance approach

Ongoing¶

• Monitor legislative changes
• Stay connected to DPC community
• Review compliance annually

Resources¶

National Resources¶

• DPC Alliance - State resources and advocacy
• DPC Frontier - News and community
• Direct Primary Care Coalition - Policy updates

State-Specific¶

• Your state legislature website
• Your state medical association
• Your state insurance department

Legal¶

• Healthcare attorneys (seek DPC-experienced)
• State bar association referrals
• DPC community attorney recommendations

Sources checked against primary law and agency guidance on 2026-09-22.

Important Disclaimer¶

This guide provides general educational information only. Regulations vary by state and change over time. This information may be outdated or incomplete for your specific situation.

Always consult with a healthcare attorney licensed in your state before making legal or regulatory decisions about your practice.

Next Steps¶

After understanding your state requirements: - Required Documentation - Documentation standards - HIPAA Compliance Basics - Federal privacy requirements - Choosing a Legal Entity - Entity structure