Benefactor Annual Fees

More and more practices providing great access and care to paying customers (see “What Is Direct Primary Care?”)  Their annual fees are typically as much as St. Luke’s Family Practice or more, and they don’t fulfill the charitable mission of St. Luke’s Family Practice.

Benefactors at St. Luke’s Family Practice are supporting the charitable mission of the practice, to provide outpatient primary care to the uninsured of our community.  Their Benefactor fee allows the practice to spend more than half of its time and energy directed toward that goal – that’s what makes us a non-profit Social Purpose Organization recognized under Section 501(c)3 of the federal tax code.  St. Luke’s Family Practice is a private charity and we receive no support from any church or government agency.

Cost

Cost

2017 Benefactor Fees Annual
Dependent Child* with parent enrolled (ages 0-26) $760
Young Adult (19-35) $1430
Adult (age 36-59) $1850
Senior (age 60+) $2360
Homebound (any age) $3600

*Families with more than three children only pay for the first three dependents.

Do you have discounts for families?

Yes. We discount the annual price for young people covered under their parent’s health insurance until age 26 years. We also discount the cost for families with more than three children. As long as at least one parent is enrolled as a Benefactor, we only charge an annual fee for the first three children, and all additional siblings are seen at no added charge.

Why does it cost so much?

More and more practices providing great access and care to paying customers (see “What Is Direct Primary Care?”) Their annual fees are typically as much as St. Luke’s Family Practice or more, and they don’t fulfill the charitable mission of St. Luke’s Family Practice. Benefactors at St. Luke’s Family Practice are supporting the charitable mission of the practice, to provide outpatient primary care to the uninsured of our community. Their Benefactor fee allows the practice to spend more than half of its time and energy directed toward that goal – that’s what makes us a non-profit Social Purpose Organization recognized under Section 501(c)3 of the federal tax code. St. Luke’s Family Practice is a private charity and we receive no support from any church or government agency.

Why did you yearly fee increase?

The annual benefactor fee is determined by our Board of Directors every fall after reviewing the proposed budget for the following year. Over the past thirteen years, the rate has increased at just 2.7% per year. All of our employees (which includes our doctors, who are employees of the organization, they do not own the practice) could enjoy fewer work hours and earn higher salaries if they worked at other practices in this community. Instead, they choose to work at St. Luke’s because they appreciate our mission to provide great medical care and provide for the uninsured of our community.

Billing

Do I have to pay all at once?

Yes, to keep our costs low so we request that you make the full annual benefactor payment at the time of enrollment and annually before December 31st thereafter.

How does the renewal process work?

Renewal statements are sent out automatically in the Fall each year.  We request payment in full by December 31st for care in the following year.

When do the billing statements go out?

Billing statements for the annual benefactor fee are mailed to all Benefactors in the fall, in late October or early November.  Our Board of Directors has to make a final decision based upon the budget for the following year and approve the fee schedule.

Can I just pay for a consult or one-time visit? Can I pay for a one-time visit?

No.  Our agreement with the Internal Revenue Service for our non-profit status precludes making “one time” or “consult” visits.  Our services to insured persons are limited to only our Benefactors.

Can I pay monthly? Make payments?

St. Luke’s Family Practice is able to provide great service because we focus on caring for you – not collecting money from our patients and their insurance companies.

Our very low-overhead office is dependent on a simple annual billing cycle.  We request payment-in-full by December 31st for care in the following year.  If you are ever unsatisfied with the care you receive, we will refund the pro-rated amount remaining on your Benefactor contract for the year – there is no financial risk.

Rarely, there are Benefactors who need to make payments over time.  These circumstances are best handled when they are paid in advance (i.e. making quarterly or monthly payments in 2017, towards care in 2018 – one year in advance).  We will not generate bills; such Benefactors must be reliably self-directed.

Insurance Implications

Can the Benefactor fee be applied to my deductible?

No.  The annual fee cannot be applied to your deductible.  However, some Benefactors do apply the Medicare allowable charges of services they incur toward their deductible throughout the year.

Can I use my HSA funds to pay for the Benefactor Fee?

That depends upon your HSA plan and administrator.  Some Benefactors can, and some cannot.  Some Benefactors use high-deductible insurance and the HSA funds go to pay for out of office charges (labs, prescriptions, imaging, specialists),  Please consult with your HSA plan or administrator for details.

Tax Implications

St. Luke’s is a 501(c)3 non-profit organization. Can I deduct my benefactor payment from my income taxes as a charitable contribution?

The Internal Revenue Service has advised us not to provide tax information.  Every Benefactor’s situation is different.  You must consult with your tax professional.

Some Benefactors simply donate to St. Luke’s Family Practice as a worthy charity, and never receive any services from us.  They might deduct the entire payment as a charitable donation.  Other Benefactors receive all their care through St. Luke’s Family Practice and do not deduct any of the annual Benefactor payment.  Still other Benefactors compare the amount they gave to St. Luke’s and subtract the value of services that they received, and consider deducting the difference.  Every Benefactor’s situation is different.  Consult with your tax professional.

What is the Value of Service statement? Do I have to pay that amount?

No.  The Value of Service statement is mailed to Benefactors before January 31st each year and reports the Medicare determined value (the “RBRVS participating rate”) for the services that our Benefactors received in the previous year.  Some benefactors, with their tax professionals, use this amount to decide how much of the prior year’s payments to St. Luke’s Family Practice (a non-profit 501(c)3 organization) they may choose to claim as a charitable deduction on their income taxes.  Every Benefactor’s situation is different and needs to be evaluated with their tax professional.  We have been requested by the IRS not to provide tax advice.

Who do I contact if I have more questions?

Please contact our Office Manager, Ericka Carranza-Perez at 209-846-7916 or ecarranza@stlukesfp.org.