REVISED
STATEMENT OF PURPOSE
RS31134 / H0523
This legislation would provide that Health Care Sharing Ministry (HCSM) expenses are eligible medical
expenses for Medical Savings Accounts (MSA). In Idaho, MSAs enable Idahoans to receive tax deduction
benefits for up to $10,000 of health related expenses paid out of their Medical Savings Account. Under
current Idaho law, citizens can only use their MSA for eligible medical, vision, and dental expenses (as
defined by the Internal Revenue Code), along with health insurance and supplemental Medicare premiums
and long-term care expenses. Due to the fact that HCSMs are not insurance companies and are not as well
known, the tax code does not explicitly address their status. Currently, Idaho HCSM members are unable
to utilize an MSA for HCSM expenses that serve a similar purpose to insurance premiums. Members of
HCSMs financially assist fellow members with large medical expenses rendering a result usually provided by
health insurance. However, their costs do not have tax parity with health insurance premiums. Like health
insurance policyholders, members of HCSMs make payments that go toward assisting fellow members with
medical expenses. Share fees paid to HCSMs are also not tax deductible, even though HCSMs are nonprofit
organizations, due to the possibility of those funds being used on the member’s own health expenses.
FISCAL NOTE
There are an estimated 7,500 Idaho households participating in a Health Care Sharing Ministry arrangement,
with an average share fee amount of $500 per month would be an estimated $45,000,000 annually, at the tax rate
of 5.8%, would be $2.6 million not collected in tax revenue by the state since this would now be tax deductible.
This is an estimate based on all of these households taking advantage of the MSA tax deduction benefits. This
legislation would save the average Idahoan utilizing a HCSM arrangement $350 per year in taxes.
Contact:
Representative Jordan Redman
(208) 332-1000
DISCLAIMER: This statement of purpose and fiscal note are a mere attachment to this bill and prepared by a proponent
of the bill. It is neither intended as an expression of legislative intent nor intended for any use outside of the legislative
process, including judicial review (Joint Rule 18).
Statement of Purpose / Fiscal Note Bill SOP/FN REVISED: 02/19/2024, 11:18 AM


Statutes affected:
Bill Text: 63-3022K