Rep. Mike Kelly Introduces Act to Give HCSM Members Access to Tax Savings
Under current U.S. laws, members of Health Care Sharing Ministries (HCSMs) including Solidarity HealthShare are not entitled to important tax savings benefits, despite facilitating the sharing of more than $1 billion in medical expenses each year.
As a result, our nation’s 1.3 million HCSM members are penalized in this way simply for choosing to opt out of traditional healthcare insurance plans in favor of joining tax-exempt ministries that better align with their healthcare goals. Alternatively, those who elect to use health insurance toward medical expenses are allowed to deduct those costs from yearly tax returns.
Change is on the way though. Rep. Mike Kelly recently introduced the Health Care Sharing Ministry Tax Parity Act to allow members of HCSMs to deduct membership expense payments as medical expenses on their tax returns if they exceed the annual adjusted gross income threshold of 7.5 percent. If passed, this simple revision could grant Solidarity Members and other HCSM members even more savings on medical expenses each year.
How the Rule Would Work
The bill would also define HCSM expenditures in the Internal Revenue Code as distinct from traditional insurance, a clarification that would prevent the IRS from treating HCSMs inconsistently.
To qualify for the benefit, a taxpayer must first be a member of an HCSM. Even taxpayers who belong to ministries established after December 31, 1999 would be eligible for tax benefits, marking a change from past rules that disqualified older ministries from receiving certain benefits. This change would free families to join any ministry they desire and still receive tax benefits, regardless of how long that ministry has been in existence.
As a faith-based HCSM devoted to saving money for our Members while providing them access to top-notch care, Solidarity HealthShare applauds Rep. Kelly’s sponsorship of this essential piece of legislation. Someone who chooses to self-pay their medical expenses in a health sharing community shouldn’t be denied tax benefits that other Americans receive. We are proud to support Rep. Kelly’s leadership on this important issue and empower patients to achieve the health care they deserve at every stage of life.
Learn More About Solidarity
Solidarity HealthShare is committed to helping our Members achieve ethical healthcare through sharing costs with our ministry. To learn more about Solidarity HealthShare’s efforts to deliver our Members’ fair and equitable prices for excellent care, click the banner below.
