Bill > SB1402

This bill creates the Health Care Sharing Ministries (HCSM) Tax Parity Act, which provides tax benefits for individuals participating in health care sharing ministries, which are nonprofit organizations that help members share medical expenses based on common ethical or religious beliefs. The bill defines an HCSM as a tax-exempt organization that facilitates voluntary financial assistance among members for medical needs, with specific requirements including limiting membership, providing quarterly sharing statements, and including a disclaimer that the organization is not insurance. Starting in tax year 2027, the bill allows qualified individuals who have been active HCSM members for at least one month 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. Individuals must claim these deductions and exemptions on 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 is designed to provide tax parity and financial support for people who choose to participate in these alternative health care cost-sharing arrangements.

Budget and Finance

http://www.oklegislature.gov/BillInfo.aspx?Bill=sb1402&Session=2600