Bill > HB2942

This bill introduces the Health Care Sharing Ministry (HCSM) Tax Parity Act, which aims to provide tax benefits for members of health care sharing ministries in Oklahoma. The legislation defines an HCSM as a non-profit, tax-exempt organization that brings together members with shared ethical or religious beliefs to voluntarily share medical expenses. Starting January 1, 2027, qualified individuals (Oklahoma residents who have been active HCSM members for at least one month) can deduct their total health care sharing expenses from their state income tax adjusted gross income. The bill covers deductions for self-employed individuals, employer contributions, and individual memberships. To claim the deduction, individuals must submit documentation of their HCSM membership and contributions, and the Oklahoma Tax Commission will develop specific guidelines for implementation. The legislation also stipulates that funds received from HCSMs for medical expenses will not be considered taxable income. Importantly, the bill includes penalties for fraudulent claims, such as repayment of improperly claimed tax deductions, a $500 civil penalty, and a three-year disqualification from claiming these deductions. The primary goal is to provide tax parity between HCSM contributions and traditional health insurance premiums, recognizing the unique role these ministries play in supporting members' medical needs based on shared beliefs.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=hb2942&Session=2600