TO AMEND THE LAW CONCERNING THE INCOME TAX TREATMENT OF EMPLOYER CONTRIBUTIONS FOR AN EMPLOYEE'S MEMBERSHIP IN A HEALTHCARE SHARING MINISTRY OR OTHER MEDICAL COST-SHARING PROGRAM.

Fiscal Impact Statement Bill: HB1698 Amendment Number: H1 Bill Subtitle: TO AMEND THE LAW CONCERNING THE INCOME TAX TREATMENT OF EMPLOYER CONTRIBUTIONS TO A HEALTHCARE SHARING MINISTRY OR OTHER MEDICAL COST-SHARING PROGRAM. --------------------------------------------------------------------------------------------------------------------------------------- Sponsors: Rep. Torres and Sen. Petty Basic Change: HB1698-H1 (engrossed 3/17/25) excludes an employer's contributions for an employee's membership in a healthcare sharing ministry or other medical cost-sharing program from the employee's gross income. The bill provides that a self-employed person may also claim the exclusion. HB1698-H1 also creates an income tax deduction for the employer's contributions to an employee's healthcare sharing ministry or other medical cost-sharing program. The bill provides that a self-employed person may also claim the deduction. Under § 23-60-104, a "healthcare sharing ministry" is defined as an organization that: • Is a faith-based, nonprofit organization that is tax-exempt under the Internal Revenue Code; • Limits participation to those who are of a similar faith; • Matches participants having

Fiscal Impact Statement Bill: HB1698 Amendment Number: H2 Bill Subtitle: TO AMEND THE LAW CONCERNING THE INCOME TAX TREATMENT OF EMPLOYER CONTRIBUTIONS FOR AN EMPLOYEE'S MEMBERSHIP IN A HEALTHCARE SHARING MINISTRY OR OTHER MEDICAL COST-SHARING PROGRAM. --------------------------------------------------------------------------------------------------------------------------------------- Sponsors: Rep. Torres and Sen. Petty Basic Change: House Amendment No. 2 --- HB1698-H2 amends the bill to: • Clarify that contributions made by a self-employed person to a healthcare sharing ministry or medical cost-sharing program are not included in the person's gross income for income tax purposes; • Define the term "medical cost-sharing program" to mean a healthcare funding arrangement where members contribute money to help cover each other's medical expenses; and • Clarify that contributions to a healthcare sharing ministry or medical cost-sharing program are exclusions from gross income rather than exemptions. Original Bill --- HB1698-H1 (engrossed 3/17/25) excludes an employer's contributions for an employee's membership in a healthcare sharing ministry or other medical cost-sharing program fr