U.S. Representatives Mike Kelly, Greg Murphy, and Chris Smith have introduced the Health Care Sharing Ministry Tax Parity Act. The proposed legislation aims to allow members of Health Care Sharing Ministries (HCSMs) to deduct their ministry membership payments as medical care expenses on their taxes.
Rep. Kelly emphasized the importance of providing choices in health care, stating that for some families, especially those of faith, alternatives like HCSMs align more closely with their values. “This legislation preserves that choice for families by allowing them to deduct payments made as part of their ministry membership in their taxes by classifying regular ministry expenses as medical care expenses,” said Rep. Kelly.
Congressman Greg Murphy also supported the bill, highlighting its role in expanding consumer freedom and fostering competition in the marketplace. He stated, “Individuals who opt to utilize health care sharing ministries deserve the same tax benefits those who have traditional health insurance enjoy.”
Rep. Chris Smith pointed out the historical penalties faced by Americans using faith-based HCSMs due to existing tax codes. He remarked that the new act would address this issue: “The Health Care Sharing Ministry Tax Parity Act will remedy this problem, ensuring Americans are no longer disadvantaged by the tax code for their religious beliefs.”
Health Care Sharing Ministries are faith-based charities exempt from taxes that facilitate payments for medical bills among members. Approximately 1.3 million Americans participate in these ministries, contributing over $1 billion annually toward medical expenses. However, current laws do not allow these contributions to be deducted as medical expenses on tax returns—a gap this bill seeks to close.
