Health Care Sharing Ministry Parity Act Announced Today

Today, U.S. Rep. Mike Kelly (R-PA), a member of the Ways & Means Subcommittee on Health, announced the introduction of H.R. 8776, the Health Care Sharing Ministry Tax Parity Act. The legislation would allow American taxpayers who are members of the Health Care Sharing Ministries (HCSMs) to deduct payments made as part of their ministry membership in their taxes by classifying regular HCSM expenses as eligible medical care expenses.

“Americans should have choices when it comes to their health care. For many families, traditional insurance is a great option. For some, however, particularly people of faith, alternative options such as Health Care Sharing Ministries more closely align with their values,” said Rep. Kelly. “This legislation preserves that choice for families by allowing them to deduct payments made as part of their ministry membership in their taxes by classifying regular ministry expenses as medical care expenses. It’s time we focus on initiatives that reintroduce freedom and dignity back to our health care system.”

Statement from Solidarity HealthShare CEO Brad Hahn on the Health Care Sharing Ministry Parity Act

“Congressman Mike Kelly’s Health Care Sharing Ministry (HCSM) Tax Parity Act is a crucial and positive development for millions in health sharing community who annually share more than $1 billion in medical expenses. Under current law, individuals who self-pay for their healthcare through health sharing ministries are not entitled to important tax and savings benefits, such as deducting their membership fees as medical expenses on their tax returns. This legislation would ensure that HCSM members receive similar tax benefits as Americans who use health insurance to finance their medical bills and do so in a way that makes clear sharing ministries are not health insurance. Solidarity HealthShare is grateful to Congressman Kelly for sponsoring this necessary legislation to ensure parity for those Americans who choose to share in faith-based ministries rather than health insurance to facilitate medical expenses. We look forward to continuing advocacy around this bill on behalf of our Members and the health sharing community at large.”

-Brad Hahn, CEO of Solidarity HealthShare

Background

Health Care Sharing Ministries are tax-exempt, faith-based charities that help facilitate payments for medical care bills. Members of the Ministry agree to make sharing contributions that are used to pay for the medical expenses of members. Ministries have a variety of sharing guidelines and operational processes, including processes that help members pay fair and equitable prices for healthcare services in accordance with their religious and ethical beliefs.

Health Care Sharing Ministries are an important option for consumers and an estimated 1.3 million Americans are members of Health Care Sharing Ministries and assist with the sharing of over $1 billion in medical expenses a year. Unfortunately, under current law, they are not entitled to certain benefits, including deducting HCSM membership expenses as medical expenses on their tax returns. This bill will solve this issue by enabling HCSM members to include ministry expenses as part of their medical expenses.

This is a simple, yet important, development that members of sharing ministries have sought for years. This bill also clearly defines HCSM expenditures and makes it clear in the Internal Revenue Code that HCSMs are not health insurance. This will help to prevent any confusion in the future about how the IRS ought to treat HCSMs, especially when it comes to federal mandates that affect traditional health insurance.

Read the Congressman’s Release Here