‘It’s high time to end the discriminatory tax treatment for members of Health Care Sharing Ministries under state law,’ says Katy Talento
WASHINGTON — Under a bill to be introduced in Oklahoma on February 3, Oklahoma residents who are members of Health Care Sharing Ministries (HCSMs) will be able to deduct their monthly shares and any other contributions related to their ministry membership on their state tax returns beginning in tax year 2026.
“We applaud this effort to level the playing field for Oklahomans who choose Health Care Sharing Ministries,” says Katy Talento, executive director of The Alliance of Health Care Sharing Ministries (The Alliance, ahcsm.org). “This bill would provide the same tax advantages enjoyed by people with health insurance to those who finance their health care through Health Care Sharing Ministries.”
“These expenses associated with Oklahomans’ membership in a Health Care Sharing Ministry would be deducted from gross adjusted income, so it means that members would save money on next year’s state taxes.”
The Health Care Sharing Ministry Tax Parity Act (SB 736) is sponsored by Sen. Dusty Deevers. Rep. Derrick Hildebrant is the sponsor of a companion bill, HB 1473.
“We greatly appreciate the leadership role taken by Sen. Deevers and Rep. Hildebrant,” Talento says.
HCSMs serve more than 1 million members, with members in all 50 states, including more than 6,000 HCSM households in Oklahoma.
Because HCSMs are not insurance companies and are not well known, the tax code does not explicitly address the status of expenses associated with ministry membership. Members of HCSMs are currently disadvantaged under Oklahoma state law compared to people who provide for their medical expenses with health insurance.
Employers who purchase health insurance for their employees may deduct the cost as a business expense, while at the same time, it is a nontaxable fringe benefit to the employee. Self-employed and other Oklahomans who purchase their own health insurance may, in most circumstances, also deduct that cost on their income tax returns. Also, no health insurance reimbursements for medical expenses are considered taxable income.
This bill would seek to end that disparity in state taxes for the thousands of households in Oklahoma that participate in an HCSM.
Missouri has had a state-level tax deduction for HCSM members for 18 years and in 2023 Indiana passed an identical state-level deduction that became effective for tax year 2024. Additionally, in 2023, Montana passed legislation to change their tax-sheltered Medical Savings Account eligible expenses to include HCSM expenses.
“This is a great opportunity for Oklahoma to join other states in halting what amounts to discriminatory tax penalties against members of Health Care Sharing Ministries,” Talento says.
Founded in 2007 and headquartered in Washington, D.C., the Alliance of Health Care Sharing Ministries is a 501(c)(6) trade organization representing the common interests of Health Care Sharing Ministries which are facilitating the sharing of health care needs (financial, emotional, and spiritual) by individuals and families, and their participants. The Alliance engages with federal and state regulators, members of the media, and the Christian community to provide accurate and timely information on health care sharing.
To learn more about the Alliance of Health Care Sharing Ministries, visit www.ahcsm.org or follow the ministry on Facebook or X.
To interview a representative from the Alliance of Health Care Sharing Ministries, contact Media@HamiltonStrategies.com, Beth Bogucki, 610.584.1096, ext. 105, Dawn Foglein, ext. 100, or Richard Jefferson, rjefferson@hamiltonstrategies.com.