Kelly, Murphy, Smith introduce Health Care Sharing Ministry Tax Parity Act

WASHINGTON, D.C. -- Today, U.S. Reps. Mike Kelly (R-PA) and Greg Murphy, M.D. (R-NC), members of the Ways & Means Subcommittee on Health, and Rep. Chris Smith (R-NJ) announced the introduction of the Health Care Sharing Ministry Tax Parity Act. The legislation would allow American taxpayers who are members of the 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."

"Expanding options for Americans to cover health care costs is essential to consumer freedom and creating competition in the marketplace," said Congressman Greg Murphy, M.D. "Individuals who opt to utilize health care sharing ministries deserve the same tax benefits those who have traditional health insurance enjoy. I am grateful for Chairman Kelly's leadership on this issue and support the Health Care Sharing Ministry Tax Parity Act."

"Unfairly, Americans have been historically penalized by the tax code when they chose to use faith-based health care sharing ministries to meet their healthcare needs. 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," said Rep. Smith.

Learn more about the bill here.

BACKGROUND

Health Care Sharing Ministries (HCSM) are tax-exempt, faith-based charities that help facilitate payments for medical care bills. Members of the Ministry agree to make sharing contributions that are used to pay for the medical expenses of members. Ministries have a variety of sharing guidelines and operational processes, including processes that help members pay fair and equitable prices for healthcare services in accordance with their religious and ethical beliefs.

Health Care Sharing Ministries are an important option for consumers and an estimated 1.3 million Americans are members of Health Care Sharing Ministries and assist with the sharing of over $1 billion in medical expenses a year. Under current law, they are not entitled to certain benefits, including deducting HCSM membership expenses as medical expenses on their tax returns. This bill will solve this issue by enabling HCSM members to include ministry expenses as part of their medical expenses.