Oklahoma House Bill HB2942

Oklahoma 2026 Regular Session

• Introduced: 2/2/26
• Refer: 2/3/26

Caption

Revenue and taxation; Health Care Sharing Ministry Tax Parity Act; definitions; income tax deduction; effective date.

Summary

HB2942 creates the “Health Care Sharing Ministry Tax Parity Act” and establishes a new Oklahoma income tax deduction for certain residents who are active members of a qualifying health care sharing ministry (HCSM). The bill defines an HCSM as a nonprofit, tax-exempt organization whose members share common ethical or religious beliefs, pool funds to pay medical expenses, provide regular reporting and an annual independent audit, and expressly state that they are not an insurance company. A “qualified individual” is an Oklahoma resident who has been an active HCSM member for at least one month during the tax year. Beginning with tax years on or after January 1, 2027, eligible taxpayers may deduct the total amount of qualified health care sharing expenses from Oklahoma adjusted gross income. The deduction is extended to self-employed individuals in a manner similar to health insurance premium deductions, to employer contributions for employee HCSM membership as a nontaxable fringe benefit, and to individuals paying for their own or dependents’ membership. The bill also provides that funds received from HCSM members to help pay medical expenses are not taxable income under Oklahoma law, and it directs the Oklahoma Tax Commission to create forms, guidelines, and procedures to administer the deduction and verify eligibility.

Impact

The bill would add a new section to Title 68 of the Oklahoma Statutes and change state income tax treatment for health care sharing ministry contributions and medical cost-sharing payments. It would create a new deduction from adjusted gross income, exempt certain HCSM-related employer benefits from taxation, and clarify that qualifying medical sharing funds are not taxable income. The Oklahoma Tax Commission would gain administrative and enforcement responsibilities, including rulemaking, annual reporting to the Legislature, and oversight of documentation and eligibility claims. The bill also imposes penalties for fraudulent claims, including repayment, a civil penalty, and a temporary bar on future deductions.

Sentiment

The available voting history shows strong support in the House Appropriations and Budget Finance Subcommittee, where the bill passed 8-0 and was recommended to the full committee. The bill text itself frames the measure as a fairness and parity issue, arguing that HCSM members should receive tax treatment similar to health insurance policyholders. No committee transcript was provided, so there is no recorded debate in the materials beyond the bill’s stated findings and the unanimous subcommittee vote.

Contention

The main policy issue is whether health care sharing ministry contributions should receive the same tax advantages as health insurance premiums. Supporters, as reflected in the bill findings, view the measure as eliminating financial discrimination against people who participate in faith-based or ethically based cost-sharing arrangements. Potential concerns include the fiscal impact of the new deduction, the need for Tax Commission oversight, and the possibility of fraudulent claims, which the bill addresses with documentation requirements and penalties. Another likely point of contention is the distinction between HCSMs and regulated insurance, since the bill expressly says these ministries are not insurance companies while still granting tax benefits similar to insurance-related deductions.