Bill > S653

This bill amends the Internal Revenue Code to officially recognize health care sharing ministries (HCSMs) as a medical expense for tax purposes. Specifically, the bill allows individuals to deduct membership fees and medical expense sharing costs from a qualified HCSM as a medical expense, similar to how traditional medical insurance costs are currently treated. The bill also explicitly states that HCSMs will not be legally classified as health plans or insurance, which provides clarity on their regulatory status. A health care sharing ministry is typically a faith-based organization where members voluntarily share medical expenses, often based on similar religious or ethical beliefs. The changes made by this bill would take effect for tax years beginning after December 31, 2025, giving individuals and HCSMs time to prepare for the new tax treatment. By allowing these membership costs to be considered medical expenses, the bill provides potential tax benefits for individuals who participate in these alternative healthcare cost-sharing arrangements.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/653/all-info