Summary

Treats payments to health care sharing ministries — both amounts paid to share medical expenses and administrative fees — as qualifying medical expenses for federal income tax purposes, so they can be treated like other deductible medical costs. Also adds a rule clarifying that a health care sharing ministry (defined by reference to the tax code definition, excluding one subclause) is not treated as a health plan or insurance for purposes of the Internal Revenue Code. The changes apply to taxable years beginning after December 31, 2025.

Key Points

• Payments to health care sharing ministries (including administrative fees) are treated as qualifying medical expenses under the federal tax code.
• A new tax-code provision clarifies health care sharing ministries are not health plans or insurance for tax purposes.
• The bill references the existing statutory definition of health care sharing ministry but excludes a specific subclause from that definition.
• The change takes effect for taxable years beginning after December 31, 2025.
• Affects tax treatment for individuals who participate in or pay into health care sharing ministries.
• May require IRS guidance to clarify interactions with other tax provisions that rely on the definition of medical expenses.
• Does not itself create or regulate health care sharing ministries beyond tax treatment.
• Narrow, targeted change to the Internal Revenue Code rather than a broad health or insurance reform.

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