News from Representative Kelly

 

FOR IMMEDIATE RELEASE
Contact: Matt Knoedler
June 25, 2024

Kelly introduces Health Care Sharing Ministry Tax Parity Act

WASHINGTON, D.C. -- Today, U.S. Rep. Mike Kelly (R-PA), a member of the Ways & Means Subcommittee on Health, announced the introduction of H.R. 8776, the Health Care Sharing Ministry Tax Parity Act. The legislation would allow American taxpayers who are members of the Health Care Sharing Ministries (HCSMs) to deduct payments made as part of their ministry membership in their taxes by classifying regular HCSM expenses as eligible medical care expenses.

“Americans should have choices when it comes to their health care. For many families, traditional insurance is a great option. For some, however, particularly people of faith, alternative options such as Health Care Sharing Ministries more closely align with their values,” said Rep. Kelly. “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.”

“Congressman Mike Kelly's Health Care Sharing Ministry (HCSM) Tax Parity Act eliminates the unfairness of extending tax benefits to people with health insurance for their payments but not to members of HCSMs for membership expenses. All too often, especially in recent years, people who come up with innovative faith-based solutions are treated as second-class citizens. Rep. Kelly's legislation also makes it clear that HCSMs are not health insurance, which is a feature, not a bug of Health Care Sharing Ministries. The Alliance applauds Rep. Mike Kelly for introducing this important legislation that will extend tax benefits now unfairly denied to members of HCSMs,” says Katy Talento, executive director of the Alliance of Health Care Sharing Ministries.

"Congressman Mike Kelly's Health Care Sharing Ministry (HCSM) Tax Parity Act is a crucial and positive development for millions in health sharing community who annually share more than $1 billion in medical expenses. Under current law, individuals who self-pay for their healthcare through health sharing ministries are not entitled to important tax and savings benefits, such as deducting their membership fees as medical expenses on their tax returns. This legislation would ensure that HCSM members receive similar tax benefits as Americans who use health insurance to finance their medical bills and do so in a way that makes clear sharing ministries are not health insurance,” said Solidarity HealthShare CEO Brad Hahn.

“Solidarity HealthShare is grateful to Congressman Kelly for sponsoring this necessary legislation to ensure parity for those Americans who choose to share in faith-based ministries rather than health insurance to facilitate medical expenses. We look forward to continuing advocacy around this bill on behalf of our Members and the health sharing community at large,” Hahn added. 

BACKGROUND

Health Care Sharing Ministries are tax-exempt, faith-based charities that help facilitate payments for medical care bills. Members of the Ministry agree to make sharing contributions that are used to pay for the medical expenses of members. Ministries have a variety of sharing guidelines and operational processes, including processes that help members pay fair and equitable prices for healthcare services in accordance with their religious and ethical beliefs.

Health Care Sharing Ministries are an important option for consumers and an estimated 1.3 million Americans are members of Health Care Sharing Ministries and assist with the sharing of over $1 billion in medical expenses a year. Unfortunately, under current law, they are not entitled to certain benefits, including deducting HCSM membership expenses as medical expenses on their tax returns. This bill will solve this issue by enabling HCSM members to include ministry expenses as part of their medical expenses.

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Matt Knoedler
Communications Director, U.S. Rep. Mike Kelly (PA-16)
1707 Longworth House Office Building | Washington, D.C. 20515
Cell: 202-304-6722
Office: 202-225-5406
Kelly.House.Gov

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