Florida committee advances bill to let licensed agents discuss faith-based health care sharing ministries

Senator Yarbrough told the Senate Banking and Insurance Committee that CS/SB 834 would repeal a recent statutory prohibition preventing licensed insurance agents from partnering with faith-based health care sharing ministries (HCSMs) to market membership-sharing programs. He said the repeal would "restore free speech, remove unnecessary business barriers, and maintain strong consumer protections" while oversight by the attorney general, the Department of Financial Services and the Office of Insurance Regulation would remain in place.

Opponents who testified urged the committee to reject or rework the bill. Joel Noble, director of public policy for Samaritan Ministries, said the current safe-harbor statute distinguishes HCSMs from insurance and warned that allowing agents and brokers to market HCSMs "would contradict that" distinction and could enable bad actors. Noble told the committee he has seen "bad actors" who used brokers and paid "extraordinary commissions," leaving members unpaid and causing large shortfalls.

Devin Graham of American Atheists also urged a no vote, arguing that some sharing ministries use "deceptive and misleading language" that can lead members to believe those programs replace health insurance; he told senators that some programs "are known to pay out only 16¢ on the dollar," and cited prior litigation against sharing organizations as evidence of consumer harm.

Proponents said the statutory safe-harbor and existing disclosure requirements limit consumer confusion. George Faju, representing the Florida Insurance Counsel, said the disputed language was added two years ago without stakeholder notice and that permitting trained agents to discuss these alternatives could improve consumer education; he noted that HCSMs are required to include disclosures that they are not insurance.

Committee members pressed witnesses on how HCSMs operate. Witnesses described member-driven monthly "shares" held in member accounts and acknowledged there is no guarantee of payment like an insurance policy. In response to questions about whether agent involvement would change a ministry's business model, witnesses said legitimate ministries currently avoid using brokers and that allowing agents to provide information would not automatically convert HCSMs into insurance.

After debate, the committee adopted a title-only amendment and, by roll call vote, reported CS for SB 834 favorably. The bill will proceed to the next committee or the Senate floor for further consideration.