Bill > SB1406

This bill creates the Health Care Sharing Ministries (HCSM) Tax Parity Act, which provides tax benefits for individuals who participate in health care sharing ministries, which are not-for-profit organizations where members with shared ethical or religious beliefs voluntarily contribute to each other's medical expenses. The bill defines an HCSM as a tax-exempt organization that facilitates financial assistance among members without being an insurance company, requires quarterly reporting, annual independent audits, and includes a specific disclaimer about the voluntary nature of the assistance. Starting in tax year 2027, qualified individuals who are active members of an HCSM for at least one month will be able to claim a tax deduction for their HCSM membership expenses, including medical expense sharing and administrative fees. Additionally, any qualified health care share received by an individual through an HCSM will be exempt from taxable income. To claim these tax benefits, individuals must submit a form prescribed by the Oklahoma Tax Commission, which will also develop rules for verifying claims. The bill becomes effective on November 1, 2026, and aims to provide tax parity and recognition for these alternative healthcare cost-sharing arrangements.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb1406&Session=2600