Sponsors (10)
The bill gives members of health care sharing ministries a clearer, potentially valuable tax deduction but risks eroding insurance consumer protections, produces uneven benefits that favor itemizers, and modestly reduces federal revenue.
People who pay health care sharing ministry fees can deduct those payments as medical expenses when they itemize, reducing taxable income in years they itemize.
Members of health care sharing ministries get clearer federal tax treatment for their payments beginning in 2026, reducing uncertainty about deductibility.
Stating that health care sharing ministries are not health plans or insurance could enable them to avoid insurance regulatory protections and consumer safeguards, putting members and some providers at greater financial and coverage risk.
Low- and moderate-income people who rely on ministries are less likely to benefit because the deduction only helps taxpayers who itemize, so the change disproportionately favors higher‑income itemizers.
Treating ministry payments as deductible medical expenses could reduce federal tax revenue, potentially increasing pressure for higher taxes or spending cuts elsewhere.
Based on analysis of 2 sections of legislative text.
Treats payments to qualifying health care sharing ministries (membership, shared medical payments, admin fees) as deductible medical expenses for federal income tax purposes.
Introduced March 11, 2025 by Mike Kelly · Last progress March 11, 2025
Allows payments to health care sharing ministries — including membership fees, shared medical expense payments, and administrative charges — to be treated as deductible medical expenses for federal income tax purposes. It also clarifies that health care sharing ministries are not to be treated as health plans or insurance under the Internal Revenue Code. The change applies to tax years beginning after December 31, 2025.