Login | July 07, 2024
Bill would classify HCSMs as charities, not insurance
KEITH ARNOLD
Special to the Legal News
Published: July 3, 2024
The Republican sponsors of the Health Care Sharing Ministries Freedom to Share Act want Ohio to join two-thirds of other states to ensure that faith-based, health care-cost sharing groups are regulated as religious charities.
House Bill 474 would create a common definition that classifies healthcare sharing ministries (or HCSMs) as charities rather than as insurance.
“Health Care Sharing Ministries are 501(c)(3) tax exempt membership charities that facilitate the sharing of medical expenses among their members,” Celina Rep. Angie King said. “Each one operates a little differently, but they are generally groups of like-minded people who share a common set of ethical or religious beliefs and contribute monthly to share in the cost of other members medical expenses.”
She told members of the Insurance Committee in the Ohio House of Representatives that 1.7 million people throughout the United States––including 25,000 from Ohio––rely on sharing plans to help cover their major medical expenses and those of fellow members, while allowing members to abide by and support their religious and ethical beliefs.
HB 474 would require that an HCSM would:
• Limit its participants to those members who share a common set of ethical or religious beliefs;
• Act as a facilitator among participants who have financial or medical needs to assist in meeting those needs in accordance with criteria set by the group;
• Provide for the financial or medical needs of a participant through contributions from other participants; and
• Provide amounts that participants may contribute with no assumption of risk or promise to pay by the healthcare sharing ministry to the participants.
Additionally, a HCSM would be required to conduct an annual audit to be made available to the public and provide members on at least an annual basis the total dollar amount of qualified financial and medical needs actually shared in the previous year, analysis of the bill detailed.
King noted that HCSMs, which are recognized under the Affordable Care Act, grant members an exemption from the federal law’s requirement to maintain minimum essential medical coverage.
“As costs skyrocket, we should do everything we can to allow families and students cost-effective ways to meet their healthcare needs, as well as protect their rights of conscience,” said Rep. Adam Mathews of Lebanon.
A provision of the bill specifies that any requirement made by a state institution of higher education that attending students have health-care coverage is met by participation in a healthcare sharing ministry.
Mathews said that under current law, universities can prohibit student participation in HCSMs to satisfy students’ individual healthcare needs, while allowing faculty and staff to participate in such groups.
“While there is always difficulty in codifying established judicial precedent, this bill seeks to do so to provide clarity for all HCSMs … so they can more readily ensure everyone can best comply with the law,” he added.
The bill’s final provision would allow a state income tax deduction equal to the amount the member paid during the taxable year for membership in the ministry, including all amounts paid for the taxpayer, the taxpayer’s spouse and the taxpayer’s dependents.
HB 474 awaits further consideration by the committee.
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