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Makes payments to health care sharing ministries count as deductible medical expenses for federal income tax purposes and clarifies those ministries are not treated as health insurance. Changes take effect for tax years beginning after December 31, 2025.
The bill gives tax relief and clearer tax treatment to people using health care sharing ministries, but it concentrates benefits among itemizers while risking higher premiums for traditional insurance, reduced consumer protections for ministry members, and lower federal revenue.
People who join health care sharing ministries can treat membership fees and shared medical payments as qualified medical expenses when itemizing, reducing their taxable income.
Taxpayers (including ministry participants) gain clarity because the bill explicitly confirms these ministries are not treated as 'health plans' for federal tax purposes, reducing uncertainty and simplifying tax compliance.
People with traditional health insurance (broadly, current insured Americans) could face higher premiums if healthier individuals shift to health care sharing ministries and shrink the insurance risk pool.
All taxpayers could face higher federal deficits or reduced funding for other programs because allowing these deductions reduces federal tax revenue.
Members of health care sharing ministries (including people with disabilities and low-income individuals) may have less consumer protection and fewer coverage guarantees than under regulated insurance, risking unpaid claims or gaps in care.
Introduced March 11, 2025 by Mike Kelly · Last progress March 11, 2025