Health care sharing ministry fees may become tax-deductible

What does this do?

This bill would change federal tax law so that fees paid to join a health care sharing ministry, and money members contribute toward each other's medical bills, count as deductible medical expenses. The bill also clarifies that belonging to one of these ministries does not count as having health insurance for federal tax purposes.

Who does it affect?

This change would affect individuals and families who belong to a health care sharing ministry instead of buying traditional health insurance. A health care sharing ministry is usually a faith-based organization where members voluntarily share each other's medical costs.

Why does it matter?

Under current law, these payments do not qualify as deductible medical expenses, so members cannot reduce their taxable income using them. This bill would change that starting in 2026, and would also affect how these members are treated under other federal tax rules.

Where does it stand?