H.R.2062 - To amend the Internal Revenue Code of 1986 to treat membership in a health care sharing ministry as a medical expense, and for other purposes. (119th Congress)
Summary
H.R.2062 aims to amend the Internal Revenue Code of 1986 to treat membership in a health care sharing ministry (HCSM) as a medical expense. This would allow individuals to deduct the cost of HCSM membership from their taxes as a medical expense. The bill also clarifies that HCSMs should not be treated as health plans or insurance for the purposes of the Internal Revenue Code.
Expected Effects
If enacted, this bill would provide a tax benefit to individuals who participate in health care sharing ministries. It would also create a clearer legal distinction between HCSMs and traditional health insurance plans. This could potentially lead to increased enrollment in HCSMs.
Potential Benefits
- Provides a tax deduction for HCSM membership, potentially reducing the financial burden on participants.
- Clarifies the legal status of HCSMs, reducing regulatory uncertainty.
- May encourage more people to explore alternative healthcare options.
- Could lead to lower healthcare costs for some individuals.
- Aligns tax policy with the recognition of HCSMs as a form of healthcare.
Most Benefited Areas:
Potential Disadvantages
- May reduce tax revenue for the government.
- Could incentivize people to choose HCSMs over traditional insurance, potentially leading to inadequate coverage for some.
- May create a loophole for individuals to avoid the requirements of the Affordable Care Act.
- Could lead to adverse selection in the insurance market, with healthier individuals opting for HCSMs and sicker individuals remaining in traditional insurance plans.
- The definition of HCSM excludes those that do not share medical expenses.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's alignment with the US Constitution is primarily related to the First Amendment's guarantee of religious freedom. By providing tax benefits to members of health care sharing ministries, the government could be seen as supporting religious practices, although the bill does not explicitly favor any particular religion. The bill also touches upon the general welfare clause of the Constitution, as it relates to healthcare access and affordability.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).