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Bill

SB 245

Income Taxes, tax deduction for members of a Health Care Sharing Ministry for certain health care sharing expenses

2026 Regular Session Introduced by Dan Roberts

Bill allows Alabama tax deduction for Health Care Sharing Ministry expenses, creating special tax treatment unavailable to traditional health insurance purchasers.

Currently Indefinitely Postponed
#taxation&revenue
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Bill Summary · SB 245

Legislative bill overview

SB 245 would allow members of Health Care Sharing Ministries (HCSMs) in Alabama to claim a tax deduction for qualifying health care sharing expenses paid directly to these organizations. The bill specifically targets religious and faith-based health cost-sharing arrangements as an alternative to traditional insurance.

Why is this important

This bill directly affects individuals' tax liability and could incentivize participation in HCSMs, which operate outside the traditional insurance regulatory framework. It raises questions about tax fairness, since traditional health insurance premiums are not deductible for individuals, while this proposal would create a special deduction for a specific type of health care arrangement.

Potential points of contention

  • Tax equity concerns: Traditional health insurance premiums aren't tax-deductible for individuals, so granting this deduction only to HCSM members creates unequal treatment across different healthcare payment models
  • Regulatory gap: HCSMs operate with minimal federal oversight compared to insurance companies, raising consumer protection questions about whether members receive adequate accountability and coverage guarantees
  • Revenue impact: The deduction could reduce state tax revenue, with unclear estimates of how many Alabamians would benefit and the fiscal cost

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

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