A bill to amend the Internal Revenue Code of 1986 to treat membership in a health care sharing ministry as a medical expense, and for other purposes.
Summary
SB 653 would amend the Internal Revenue Code to treat membership in a health care sharing ministry as a qualified medical expense for federal tax purposes. The bill specifically adds membership costs, including administrative fees and the sharing of medical expenses through such ministries, to the list of deductible medical expenses under section 213 of the tax code.
The bill also creates a new provision stating that, for purposes of the Internal Revenue Code, a health care sharing ministry would not be treated as a health plan or as insurance. The changes would apply to taxable years beginning after December 31, 2025. In practical terms, the measure would give members of these ministries clearer tax treatment while preserving their distinct legal status outside the insurance framework.
Impact
If enacted, SB 653 would amend sections 213 and chapter 79 of the Internal Revenue Code, expanding the definition of deductible medical expenses and adding a new section clarifying that health care sharing ministries are not insurance or health plans for federal tax purposes. The bill would affect taxpayers who participate in these ministries, potentially allowing them to claim deductions for membership-related costs, and it would also reinforce the ministries’ separate treatment under federal tax law.
Sentiment
No committee transcript or vote record is available, so there is no direct evidence of debate or bipartisan support in the provided materials. The bill’s introduction and referral to the Senate Finance Committee suggest it is at an early stage, with the general posture appearing to be supportive of health care sharing ministries and their members, but without recorded legislative sentiment in the supplied context.
Contention
The main policy issue is the legal and tax classification of health care sharing ministries. Supporters are likely to favor the bill because it reduces tax burdens for members and recognizes ministry participation as a medical expense. Potential critics may object to treating these ministries favorably in the tax code while explicitly excluding them from insurance regulation, raising concerns about consumer protections, the scope of deductible medical expenses, and whether such arrangements should receive tax advantages comparable to traditional health coverage.
To Amend The Law Concerning The Income Tax Treatment Of Employer Contributions For An Employee's Membership In A Healthcare Sharing Ministry Or Other Medical Cost-sharing Program.