New ‘game changer’ health care bill would make health sharing payments tax deductible

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Washington, D.C. Newsroom, Mar 24, 2025 / 08:00 am (CNA).

Three U.S. representatives have introduced a bill that supports American taxpayers who choose to participate in health sharing, a care option favored by Christians and pro-lifers for its religious freedom protections.

If passed, the Health Care Sharing Ministry Tax Parity Act would designate health sharing payments as tax deductable, alleviating costs for families who opt for health sharing over traditional health coverage, many of whom do so for religious reasons. The act was introduced by U.S. Reps. Mike Kelly, R-Pennsylvania; Greg Murphy, R-North Carolina; and Chris Smith, R-New Jersey.

“Unfairly, Americans have been historically penalized by the tax code when they chose to use faith-based health care sharing ministries to meet their health care 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,” Smith said in a press release on March 14.

Health sharing became a popular alternative to mainstream insurance coverage over a decade ago with the passage of the Affordable Care Act in 2010, which included a mandate from the U.S. Department of Health and Human Services requiring insurance plans to fund contraception, sterilizations, and early abortion pills.

The practice allows members to pool their money and pay for each other’s health care costs, similar to traditional insurance plans.

Legal disputes over religious freedom violations that precipitated from the Affordable Care Act continue today, with the Supreme Court set to hear a case in June regarding a part of the law governing preventative care.

“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,” Kelly said in the release.

“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,” he added. “It’s time we focus on initiatives that reintroduce freedom and dignity back to our health care system.”

Solidarity HealthShare collaborated with the three congressmen on the legislation. Founded in 2012 in wake of the Affordable Care Act, Solidarity HealthShare facilitates health sharing among individuals and families across the country who are looking to opt out of traditional insurance for a more faith-centered option.

“Solidarity is grateful for the leadership and support of Congressman Mike Kelly and his team, who have consistently taken the lead in working for tax parity for health care sharing ministry members,” Solidarity HealthShare President Chris Faddis and CEO Brad Hahn told CNA in a statement.

“His introduction of the Health Care Sharing Ministry Tax Parity Act has the potential to be a game changer for families who have chosen to escape the troubled landscape of traditional health insurance but have been unable to benefit from tax deductions available to other Americans,” the executives added.

“This bill is the culmination of an industry-wide effort to provide tax relief to members of health care sharing ministries,” they said, adding: “We are also thankful for the support of the Alliance of Health Care Sharing and other health care sharing ministry partners for advancing this effort.”