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Senate committee advances bill to extend tax parity to health-care-sharing ministries with sunset
Summary
The Finance and Taxation Education committee gave a favorable report to Senate Bill 245, which would extend parity to certain health-care-sharing ministries with a sunset provision through Dec. 31, 2029; sponsor estimated a $1.5 million annual impact on the education trust fund.
Senator Roberts offered Senate Bill 245 to extend parity to a category of health care known in the discussion as a “health care sharing ministry,” and the committee adopted a sunset amendment that would make the provision expire on Dec. 31, 2029.
The sponsor, Senator Roberts, said the bill would “give parity between what we're currently doing” and the ministries that share health costs among members. He told the committee the change would affect the education trust fund by an estimated average of $1.5 million annually.
Senators asked for clarity about who would receive the benefit and what legal form those entities take. A senator asked whether the exemption would apply to churches or denominations; the discussion clarified that the ministry entities discussed are organized as 501(c)(3) nonprofits and operate by members contributing to a shared pool to cover members’ costs. Another senator raised consumer-protection concerns, noting that these ministries are not regulated like traditional insurers and “zero requirement to pay claims” was a concern raised on the floor.
After debate and the adopted sunset amendment, members moved and seconded the bill. The committee reported the bill favorably by roll call; the amendment and the bill were recorded as adopted and given a favorable report.
The committee did not identify additional statutory cross-references in the hearing. The bill will proceed for further consideration by the full Senate or subsequent steps in the chamber’s process.
