Income tax; creating the Health Care Sharing Ministries Tax Parity Act; providing deduction for certain expenditures. Effective date.
Summary
SB 1402 creates the “Health Care Sharing Ministries Tax Parity Act” and amends Oklahoma income tax law to give tax treatment to certain payments made to, and amounts received through, health care sharing ministries (HCSMs). The bill defines an HCSM as a nonprofit, tax-exempt organization with members who share common ethical or religious beliefs, that facilitates sharing of medical costs among members, provides periodic statements, is independently audited, and includes a disclaimer stating it is not insurance and does not guarantee payment of medical bills.
Beginning with tax year 2027, a qualified Oklahoma resident who has been an active member of an HCSM for at least one month during the tax year may deduct qualified health care sharing expenses from Oklahoma adjusted gross income. The bill also excludes from taxable income any qualified health care share received by an individual taxpayer as a result of HCSM membership. The Oklahoma Tax Commission would be required to prescribe the claim form and adopt rules to verify claims and administer the new deduction and exemption.
Impact
The bill would add a new section to Title 68 of the Oklahoma Statutes, creating a state income tax deduction for HCSM membership expenses and a corresponding income tax exemption for certain HCSM payments received by individuals. It would affect resident taxpayers who participate in qualifying ministries, as well as the Oklahoma Tax Commission, which would need to implement verification procedures and issue rules. The measure is prospective, applying to tax year 2027 and later, and would not codify the HCSM definition as insurance, but rather as a separate tax-favored arrangement.
Sentiment
Based on the bill text and available context, the measure appears generally supportive of health care sharing ministry participants and is framed as a tax parity measure. There are no recorded committee transcripts or votes in the provided materials, so there is no documented opposition or debate to assess. The bill’s introduction and later coauthoring suggest at least some legislative interest in advancing the proposal.
Contention
The main policy issue is whether HCSM contributions and benefits should receive tax treatment similar to health insurance-related expenses, especially given the bill’s explicit statement that these organizations are not insurance companies and do not guarantee payment of medical bills. Potential points of contention include the religious or ethical membership requirement, the exclusion of HCSMs from insurance regulation, and the need for the Tax Commission to verify claims and prevent misuse. No specific legislators or stakeholder groups are identified in the provided record as opposing or supporting these points.
Income tax; creating the Health Care Sharing Ministry Tax Parity Act; stating certain deduction and procedures; requiring Oklahoma Tax Commission to create forms and guidelines. Effective date.
Income tax; providing credit for certain employer child care expenditures; providing refundability credit for qualified child care worker. Effective date.