A bill to amend the Internal Revenue Code of 1986 to treat membership in a health care sharing ministry as a medical expense, and for other purposes.

Bill: 119-s-653
Sponsor: full_name: Sen. Budd, Ted [R-NC]
Introduced: 2025-02-20
Policy area: Taxation
Latest action: action_date: 2025-02-20
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2025-02-20
action_desc: Introduced in Senate
text: <p>This bill provides that amounts paid for membership in a health care sharing ministry, including amounts paid for the sharing of medical expenses and administrative fees, are a tax-deductible medical expense. (Health care sharing ministries are faith-based organizations with members who share a common set of ethical or religious beliefs and who contribute regular payments to cover the medical expenses of other members.)</p>

tv_txt: II 119th CONGRESS 1st Session S. 653 IN THE SENATE OF THE UNITED STATES February 20, 2025 Mr. Budd introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to treat membership in a health care sharing ministry as a medical expense, and for other purposes.

1. Treatment of health care sharing ministries as a medical expense and not as insurance (a) Treatment as a medical expense Section 213(d)(1) of the Internal Revenue Code of 1986 is amended by striking or at the end of subparagraph (C), by striking the period at the end of subparagraph (D) and inserting , or , and by adding at the end the following new subparagraph: (E) for membership in a health care sharing ministry (as defined in section 5000A(d)(2)(B)(ii) without regard to subclause (IV) thereof), including— (i) the sharing of medical expenses with respect to such ministry, and (ii) the payment of administrative fees of such ministry. . (b) Health care sharing ministry not treated as a health plan or insurance (1) In general Chapter 79 of the Internal Revenue Code of 1986 is amended by inserting after section 7702B the following new section: 7702C. Treatment of health care sharing ministries For purposes of this title, a health care sharing ministry (as defined in section 5000A(d)(2)(B)(ii) without regard to subclause (IV) thereof) shall not be treated as a health plan or as insurance. . (2) Clerical amendment The table of sections for chapter 79 of such Code is amended by inserting after the item relating to section 7702B the following new item: Sec. 7702C. Treatment of health care sharing ministries. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2025.