Establishing a Legislative Safe Harbor for Direct Primary Care
- Advocate legislatively
- Bring awareness to members, the public, media and/or specific groups/stakeholders
- Provide education to members, the public, media and/or specific groups/stakeholders
- Support/collaborate with other groups/organizations on work that’s already being done
WHEREAS Direct Primary Care (DPC) is a practice model that allows patients to pay a flat monthly fee for defined primary care services, bypassing third-party billing and reducing administrative overhead by up to 40%;
WHEREAS the American Academy of Family Physicians (AAFP) officially supports the DPC model as a means to improve physician satisfaction, reduce burnout and enhance the patient-physician relationship;
WHEREAS Minnesota currently lacks a specific “Safe Harbor” statute, leaving DPC clinicians vulnerable to being misclassified and regulated as “health insurance providers” by the Department of Commerce;
WHEREAS over 30 states have already passed DPC “Not Insurance” legislation, providing the legal clarity necessary for family physicians to open and operate these clinics without the threat of predatory regulation;
WHEREAS DPC models have demonstrated improved outcomes in chronic disease management and significant reductions in ER visits and hospitalizations through increased patient access;
BE IT RESOLVED that the Minnesota Academy of Family Physicians (MAFP) formally support the introduction and passage of state legislation that defines Direct Primary Care (DPC) as a medical service and explicitly states that it is not a product of insurance;
BE IT FURTHER RESOLVED that the MAFP Advocacy Committee prioritize engagement with the Minnesota State Legislature to draft and sponsor a “Direct Primary Care Act” to protect the right of family physicians to contract directly with patients.
Originally submitted resolution
BE IT RESOLVED that…
BE IT FURTHER RESOLVED that…
BE IT FURTHER RESOLVED that…
Supporting information
- Defining “Not Insurance”: Legislation clarifies that DPC is a medical service contract, not a risk-bearing insurance product, protecting physicians from being regulated by the Department of Commerce.
- Standardization across 33+ States: Over 30 states have already passed “Not Insurance” laws, providing a proven legislative roadmap for Minnesota to follow.
- Reduction in Defensive Medicine: By removing the “fee-for-service” incentive, physicians can focus on necessary care rather than coding for maximum reimbursement.
- Combating Burnout: DPC eliminates the administrative burden of insurance coding and prior authorizations, which consume up to 40% of a traditional physician’s workday.
- Recruitment and Retention: Clear DPC laws make Minnesota more attractive to new residents and prevent experienced family physicians from retiring early due to administrative fatigue.
- Small Business Growth: DPC clinics are typically small, locally-owned businesses that contribute to the state’s economy and provide jobs in the medical sector.
- Increased Autonomy: Physicians regain control over their schedules, allowing for 30-60 minute visits compared to the 15-minute standard in traditional models.
- ER Diversion: Studies show DPC patients have 31% to 65% fewer emergency room visits because they can reach their doctor 24/7 for urgent needs.
- Reduced Hospitalizations: Proactive management in DPC models has been linked to a 20% to 35% reduction in hospital admissions.
- Chronic Disease Management: Longer visits allow for intensive counseling on lifestyle and medication adherence for diabetes, hypertension and obesity.
- Same-Day Access: 99% of DPC practices offer same-day or next-day appointments, drastically reducing wait times that often exceed 20 days in traditional systems.
- Transparent Pricing: DPC removes “surprise billing” by providing a flat, predictable monthly fee (averaging $50-$100).
- Wholesale Savings: Many DPC clinics offer labs and medications at wholesale prices, often 70% to 90% cheaper than retail pharmacy prices.
Comments in support
(4 comments)
Tim Mulder – This has long been overdue in Minnesota! Giving Minnesotans another option for how they pay for and receive their medical care is a good thing for this state.
Nancy Baker – It seems like it’s time to take this action in support of our colleagues who are successfully providing direct primary care to their patients.
David Bucher – Moving to allow DPC practices would support more affordable care for more people.
Andrew Slattengren – Speaking in general support of the 2 be it resolved. There is modeled legislation for the “not insurance” resolved. Further information would be beneficial regarding what would be included in the “Direct Primary Care Act” resolve prior to activating the MAFP Advocacy Committee. Without knowing what is in the asked for “Direct Primary Care Act”, I would recommend that this resolution be split into 2 resolutions so that each resolve could be assessed independently.
Comments against
(0 comments)