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STATE OF OKLAHOMA
1st Session of the 60th Legislature (2025)
HOUSE BILL 1473 By: Hildebrant
AS INTRODUCED
An Act relating to revenue and taxation; creating the
Health Care Sharing Ministry Tax Parity Act;
providing Legislative findings; defining terms;
providing for income tax deduction; providing
procedure for claiming deduction; requiring Oklahoma
Tax Commission to create forms and guidelines;
providing funds to be nontaxable; providing Oklahoma
Tax Commission with administrative oversigh t;
providing penalties for fraudulent claims; providing
for severability; providing for noncodification;
providing for codification; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law not to be
codified in the Oklahoma Statutes reads as follows:
This act shall be known and may be cited as the "Health Care
Sharing Ministry Tax Parity Act".
SECTION 2. NEW LAW A new section of law not to be
codified in the Oklahoma Statutes reads as follows:
The Legislature finds and declares:
1. Health Care Sharing Ministries (HCSMs) play a significant
role in addressing medical needs for individuals and families,
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providing financial and emoti onal support outside of health
insurance.
2. HCSMs enable their members to share health care costs in a
voluntary and community -focused manner consistent with their ethical
and religious beliefs.
3. Despite their critical function, HCSM contributions and
payments are not currently afforded the same tax treatment as health
insurance premiums under state law.
4. To ensure fairness and eliminate financial discrimination,
this act allows HCSM members to deduct qualifying expenses and
contributions on their s tate income tax returns, achieving tax
parity with health insurance plans.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2358.111 of Title 68, unless
there is created a duplication in num bering, reads as follows:
A. As used in this act:
1. "Health Care Sharing Mi nistry" (HCSM) means a not-for-profit
organization that is tax -exempt under Section 501(c)(3) of the
Internal Revenue Code and:
a. limits its members to those who share a common set of
ethical or religious beliefs ,
b. facilitates sharing of medical expenses between
members in accordance with its ethical or religious
beliefs,
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c. requires regular contributions from members with no
assumption of risk or promise to pay for medical
expenses,
d. provides a quarterly report to members detailing the
amount of needs shared and contributions received ,
e. conducts annual independent audits that are publicly
available, and
f. provides a disclaimer stating that it is not an
insurance company an d participation is voluntary ;
2. "Qualified Health Care Sharing Expenses " means amounts paid
by a qualified individual as a member of a HCSM ; and
3. "Qualified Individual " means any resident of Oklahoma who
has been an active member of an HCSM for at lea st one (1) month
during the applicable tax year.
B. 1. For tax years beginni ng on or after January 1, 2026, a
qualified individual is entitled to deduct the total amount of
qualified health care sharing expenses paid during the taxable year
from their adjusted gross income (AGI) on their Oklahoma state
income tax return.
2. The deduction allowed under this section shall be applicable
to:
a. self-employed individuals, in the same manner as
deductions for health insurance premiums ,
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b. employer contribution s toward HCSM membership for
employees, which shall be treated as nontaxable f ringe
benefits, and
c. individuals paying amounts for HCSM membership for
themselves or their dependents .
C. 1. To claim the deduction, a qualified individual must:
a. submit documentation of membership and contributions
to an HCSM, including any records issued by the
ministry, and
b. file any additional forms or information required by
the Oklahoma Tax Commission to verify eligibility.
2. The Oklahoma Tax Commission shall deve lop forms, guidelines,
and procedures for the implementation of this section.
D. Funds received by a qualified individual from HCSM members
to assist with medical expenses shall not be considered taxable
income under Oklahoma state law.
E. The Oklahoma Tax Commission shall be responsible for
administering the provisions of this act. The Tax Commission shall
issue an annual report to the Legislature detailing the number of
deductions claimed, the total fiscal impact, and any other relevant
data.
F. Any individual who knowingly submits false documentation to
claim the deductions or exemptions under this act shall be subject
to:
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1. Repayment of any income tax amount attributable to
improperly claimed deductions;
2. A civil penalty of Five Hundred Dollars ($500.00) per
offense; and
3. Ineligibility to claim deductions under this act for a
period of three (3) years.
G. If any provision of this act is found unconstitutional or
invalid by a court of competent jurisdiction, the remaining
provisions shall rema in in full force and effect.
SECTION 4. This act shall become effective November 1, 2025.
60-1-11358 AO 01/15/25