Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1 STATE OF OKLAHOMA
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2 2nd Session of the 60th Legislature (2026)
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3 SENATE BILL 1406 By: Bullard
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6 AS INTRODUCED
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7 An Act relating to income tax; creating the Health
7 Care Sharing Ministries Tax Parity Act; providing
8 short title; defining terms; providing deduction for
8 certain qualified expenses for certain tax years;
9 exempting certain amount received by an individual
9 taxpayer from taxable income for certain tax years;
10 requiring claims to be made on prescribed form;
10 requiring the Oklahoma Tax Commission to promulgate
11 rules; providing for noncodification; providing for
11 codification; and providing an effective date.
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14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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15 SECTION 1. NEW LAW A new section of law not to be
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16 codified in the Oklahoma Statutes reads as follows:
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17 This act shall be known and may be cited as the "Health Care
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18 Sharing Ministries Tax Parity Act".
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19 SECTION 2. NEW LAW A new section of law to be codified
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20 in the Oklahoma Statutes as Section 2358.8 of Title 68, unless there
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21 is created a duplication in numbering, reads as follows:
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22 A. As used in this act:
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Req. No. 2232 Page 1
1 1. "Health care sharing ministry" (HCSM) means a not-for-profit
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2 organization that is tax-exempt under Section 501(c)(3) of the
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3 Internal Revenue Code of 1986, as amended, and:
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4 a. limits its members to those who share a common set of
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5 ethical or religious beliefs,
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6 b. acts as a facilitator among members who have financial
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7 or medical needs to assist those with financial or
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8 medical needs in accordance with criteria established
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9 by the health care sharing ministry,
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10 c. provides for the financial or medical needs of a
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11 member through contributions from other members,
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12 d. provides amounts that members may contribute with no
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13 assumption of risk or promise to pay among the members
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14 and no assumption of risk or promise to pay by the
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15 health care sharing ministry to the members,
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16 e. provides to the members a written statement at least
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17 quarterly with the total dollar amount of qualified
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18 medical needs actually shared in the previous
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19 reporting period in accordance with criteria
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20 established by the health care sharing ministry,
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21 f. is annually audited by an independent certified public
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22 accountant or firm of certified public accountants
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23 which is made available to the public by providing a
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Req. No. 2232 Page 2
1 copy upon request, or by posting on the website of the
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2 organization, and
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3 g. provides a written disclaimer on or accompanying all
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4 applications and guideline materials distributed by or
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5 on behalf of the organization that reads, in
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6 substance: "Notice: The organization facilitating
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7 the sharing of medical expenses is not an insurance
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8 company, and neither its guidelines nor plan of
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9 operation is an insurance policy. Whether anyone
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10 chooses to assist you with your medical bills will be
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11 totally voluntary because no other member will be
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12 compelled by law to contribute toward your medical
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13 bills. As such, participation in the organization or
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14 a subscription to any of its documents should never be
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15 considered to be insurance. Regardless of whether you
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16 receive any payments for medical expenses or whether
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17 this organization continues to operate, you are always
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18 personally responsible for the payment of your own
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19 medical bills.";
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20 2. "Qualified health care share received" means an amount an
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21 individual taxpayer receives as a qualified individual and as a
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22 result of membership in an HCSM to assist with a medical expense;
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23 3. "Qualified health care sharing expenses" means amounts paid
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24 by a qualified individual for membership in an HCSM for the
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Req. No. 2232 Page 3
1 individual or the spouse or dependent of the individual, which shall
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2 include:
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3 a. the sharing of medical expenses with respect to the
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4 HCSM, and
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5 b. the payment of administrative fees of the HCSM; and
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6 4. "Qualified individual" means any resident of this state who
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7 has been an active member of an HCSM for at least one (1) month
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8 during the tax year in which a deduction or exemption authorized
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9 pursuant to this section is claimed.
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10 B. For tax year 2027 and subsequent tax years, there shall be
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11 allowed a deduction from Oklahoma adjusted gross income in the
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12 amount of qualified health care sharing expenses by a qualified
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13 individual.
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14 C. For tax year 2027 and subsequent tax years, any qualified
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15 health care share received by an individual taxpayer shall be exempt
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16 from taxable income.
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17 D. The exemption and deduction provided by this section shall
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18 be claimed on a form prescribed by the Oklahoma Tax Commission. The
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19 Commission shall promulgate rules to implement the provisions of
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20 this section including requirements for verifying claims.
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21 SECTION 3. This act shall become effective November 1, 2026.
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23 60-2-2232 QD 12/31/2025 2:04:27 AM
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Req. No. 2232 Page 4Every fact on this page links to its source, starting with the official bill record.