One of the most hotly-discussed recent developments in healthcare has been the mooted Health Care Sharing Ministry Tax Parity Act, a bipartisan legislative effort aimed at adjusting the tax treatment of health sharing ministry memberships.
Below are some of the key questions surrounding the proposal and what it means for consumers and potential clients of sharing ministries, as HCSM continue efforts to establish themselves as a highly-viable, low-cost alternative to traditional health insurance.
Q: What is the Health Care Sharing Ministry Tax Parity Act?
The Health Care Sharing Ministry Tax Parity Act (or Health Sharing Ministry Tax Parity Act) is proposed legislation introduced in both the House (H.R. 2062) and the Senate. If passed, the bill would allow families and individuals who are members of Health Care Sharing Ministries (HCSMs) to deduct the cost of their membership from their annual tax bill.
This is achieved by classifying the regular payments or contributions made as part of an HCSM membership as eligible medical care expenses.
The proposed federal bill (H.R. 2062) seeks to amend Section 213(d)(1) of the Internal Revenue Code of 1986 to treat membership in an HCSM as a medical expense. Crucially, the legislation also specifies that for purposes of the tax code, an HCSM shall not be treated as a health plan or as insurance.
Q: Why is this legislation considered necessary?
The Act aims to remedy the unequal tax treatment currently faced by health sharing members compared to those with traditional insurance.
Under current law, while individual taxpayers can often deduct medical insurance premiums against their income when filing their tax returns, contributions to health sharing ministries are currently not deductible for federal income tax purposes. Americans who choose the faith-based community model of health sharing are currently being unfairly penalized and denied similar tax benefits.
The goal of the Act is simple: to allow health care sharing members to access tax deductions offered to everyone else. The legislation is intended to level the playing field between health sharing ministries and traditional insurance.
Q: Does the proposed legislation give ‘special privileges’ to healthshare ministries?
No. All it does is ensure that Americans who choose healthsharing over expensive health insurance are placed on the same level, in tax terms, as everyone else. It simply levels the playing field.
Q: Is this a case of the government subsidizing healthshare ministries?
Not at all. Nothing in the legislation will involve public funds assisting HCSMs, rather Americans who choose this kind of healthcare will no longer be disadvantaged in tax terms.
Q: Who introduced the Health Care Sharing Ministry Tax Parity Act?
The legislation was introduced in both chambers of Congress in early 2025:
In the Senate: Senator Ted Budd (R-NC) introduced the bill on February 20, 2025.
In the House: U.S. Reps. Mike Kelly (R-PA), Greg Murphy, M.D. (R-NC), and Chris Smith (R-NJ) introduced the bill (H.R. 2062) on March 11, 2025.
Q: What is a Health Care Sharing Ministry (HCSM)?
Health Care Sharing Ministries are faith-based nonprofit organizations that facilitate the sharing of qualifying medical expenses among members. They are built on community, faith, and shared responsibility, rejecting the complex, transactional, corporate model of traditional insurance.
HCSMs limit their members to those who share a common set of ethical or religious beliefs. Members make set monthly contributions, which are then shared to support another member’s eligible medical needs. HCSMs are not insurance.
The estimated 1.7 million Americans who participate in health sharing collectively assist with sharing over $1 billion in medical expenses each year.
Q: What specifically would be tax-deductible under the Act?
The Act defines “Qualified health care sharing expenses” as the amount paid by a qualified individual for membership in an HCSM for the individual, their spouse, or dependent.
This includes:
The sharing of medical expenses with respect to the ministry.
The payment of administrative fees of such ministry.
The deduction would apply to taxable years beginning after December 31, 2025.
Q: What benefits are supporters claiming the Act would bring?
Supporters argue that this legislation would make HCSMs more accessible and affordable, thereby expanding consumer choice in healthcare.
The passage of this act would be significant for the estimated 1.7 million Americans who participate in health sharing. By supporting tax parity legislation, Congress can strengthen the health sharing sector and create more opportunities for people to enjoy lower healthcare costs.
Quotes on the Act
Several key figures have weighed in on the issue as it has gathered steam, with strong arguments made in favor of the bill passing.
“At a time when health insurance premiums and inflation are making it difficult for families to afford health care coverage, action is needed to offer more options. The Health Care Sharing Ministry Tax Parity Act would allow people to offset the cost of a health sharing ministry membership by deducting it from their taxes. Faith-based nonprofits like health care sharing ministries makes it easier for more people to pursue this option.”
Rep. Chris Smith
“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.”
“Americans should have choices when it comes to their health care… 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.”
Christopher Jin, President of WeShare by UHSM“This bill is a game changer for families who have chosen, or who are considering, an escape route from the troubled landscape of traditional health insurance.”