Shenango Valley News

WASHINGTON, D.C. -- Today, U.S. Rep. Mike Kelly (R-PA), a member of the Ways & Means Subcommittee on Health, announced the introduction of H.R. 8776, the Health Care Sharing Ministry Tax Parity Act. The legislation would allow American taxpayers who are members of Health Care Sharing Ministries (HCSMs) to deduct payments made as part of their ministry membership in their taxes by classifying regular HCSM expenses as eligible medical care expenses.

“Americans should have choices when it comes to their health care. For many families, traditional insurance is a great option. For some, however, particularly people of faith, alternative options such as Health Care Sharing Ministries more closely align with their values,” said Rep. Kelly. “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. It’s time we focus on initiatives that reintroduce freedom and dignity back to our health care system.”

“Congressman Mike Kelly's Health Care Sharing Ministry (HCSM) Tax Parity Act eliminates the unfairness of extending tax benefits to people with health insurance for their payments but not to members of HCSMs for membership expenses. All too often, especially in recent years, people who come up with innovative faith-based solutions are treated as second-class citizens. Rep. Kelly's legislation also makes it clear that HCSMs are not health insurance, which is a feature, not a bug of Health Care Sharing Ministries. The Alliance applauds Rep. Mike Kelly for introducing this important legislation that will extend tax benefits now unfairly denied to members of HCSMs,” says Katy Talento, executive director of the Alliance of Health Care Sharing Ministries.

"Congressman Mike Kelly's Health Care Sharing Ministry (HCSM) Tax Parity Act is a crucial and positive development for millions in the health sharing community who annually share more than $1 billion in medical expenses. Under current law, individuals who self-pay for their healthcare through health sharing ministries are not entitled to important tax and savings benefits, such as deducting their membership fees as medical expenses on their tax returns. This legislation would ensure that HCSM members receive similar tax benefits as Americans who use health insurance to finance their medical bills and do so in a way that makes clear sharing ministries are not health insurance,” said Solidarity HealthShare CEO Brad Hahn.

“Solidarity HealthShare is grateful to Congressman Kelly for sponsoring this necessary legislation to ensure parity for those Americans who choose to share in faith-based ministries rather than health insurance to facilitate medical expenses. We look forward to continuing advocacy around this bill on behalf of our Members and the health sharing community at large,” Hahn added.

Health Care Sharing Ministries are tax-exempt, faith-based charities that help facilitate payments for medical care bills. Members agree to make sharing contributions used to pay for the medical expenses of other members. These ministries have various sharing guidelines and operational processes aimed at helping members pay fair prices for healthcare services according to religious and ethical beliefs.

An estimated 1.3 million Americans are members of these ministries, assisting with over $1 billion in annual medical expenses sharing; however, they currently do not receive certain tax benefits available under existing law.