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Bill

SB 368

Enacting the health care sharing ministries tax deduction act to provide a subtraction modification for qualified health care sharing expenses paid by a qualified individual and certain qualified health care shares received by a qualified individual.

2025-2026 Regular Session

Kansas bill allows state income tax deduction for qualified health care sharing ministry expenses, potentially reducing taxes for HCSM participants while decreasing state revenue.

Vetoed by Governor; Returned to Senate on Thursday, March 26, 2026
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Bill Summary · SB 368

Legislative bill overview

SB 368 would create a state income tax deduction for Kansas residents who participate in health care sharing ministries (HCSMs) and pay qualified health care expenses through these alternative cost-sharing arrangements. The bill allows individuals to subtract these expenses and certain shared healthcare costs from their taxable income, reducing their state tax liability.

Why is this important

Health care sharing ministries operate outside traditional insurance frameworks, and this deduction could significantly lower out-of-pocket costs for participants by reducing their tax burden. This reflects a policy choice about which healthcare financing models the state incentivizes, potentially shifting how some Kansans approach health coverage decisions and affecting state tax revenue.

Potential points of contention

  • Religious vs. secular policy: HCSMs are often faith-based organizations; critics argue tax deductions shouldn't preferentially benefit religiously-affiliated healthcare alternatives over secular insurance or direct medical spending
  • Revenue impact and fairness: The deduction reduces state tax collection; questions exist about whether this is fiscally sustainable and whether it's equitable to subsidize one health coverage model over others like traditional insurance or self-insurance
  • Consumer protection gaps: HCSMs typically lack insurance regulations and consumer protections; some argue state tax policy shouldn't incentivize participation in less-regulated healthcare arrangements, especially if they leave vulnerable individuals underprotected

Compiled from official sources — confirm details with the bill’s official record.

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