Oklahoma lawmakers have made progress on a bill aimed at providing tax deductions for members of healthcare sharing ministries.
These ministries are not the same as traditional insurance. They are nonprofit groups where members who share similar beliefs pool their resources to help cover medical costs. The concept has been around in the U.S. since the early 1980s and is recognized by the IRS.
According to the Alliance of Health Care Sharing Ministries, there are currently 107 recognized groups. In Oklahoma, about 10,800 people, spread across roughly 3,800 households, are involved in these ministries. Many choose this option because it often costs less than conventional health insurance, particularly with the end of enhanced premium tax credits from the Affordable Care Act.
However, members should be cautious. These groups can decide not to pay for certain medical bills, and they don’t fall under the same regulations as health insurers. Louise Norris, a health policy analyst, points out that if a claim gets denied, individuals can’t rely on a regulatory body for help since these ministries are not considered insurance.
The proposed legislation, known as House Bill 2942, led by Rep. Derrick Hildebrant and Sen. Julie McIntosh, would allow members to deduct their contributions to these ministries starting in 2027. This bill has moved through the House Appropriations and Budget Finance Committee and is set for further consideration.
Hildebrant’s motivation for introducing this legislation came from constituents who appreciate options outside traditional insurance. One story he shared involved a friend whose son required urgent medical care. Through a healthcare sharing ministry, the friend received a timely payment for the treatment.
Hildebrant emphasizes that these ministries offer freedom of choice, especially for people who may have ethical concerns regarding traditional insurance practices. Other states like Missouri and Indiana have similar laws, indicating a growing interest in health care alternatives.
While healthcare sharing ministries can provide unique benefits, experts highlight potential risks. Norris warns that not all experiences are positive, as some individuals may find themselves inadequately covered in emergencies. It’s crucial for consumers to read the fine print and be fully aware of what they are signing up for.
In a world where health care options are expanding, the conversation around these ministries is becoming increasingly relevant. As healthcare costs rise, more people are considering alternatives that align with their beliefs and financial needs.
For more insights and updates on healthcare options, readers can check out resources from HealthInsurance.org.
