The proposed bill, known as the Health Care Sharing Ministry Tax Parity Act, aims to provide tax deductions for members of health care sharing ministries (HCSMs) in Oklahoma, aligning their tax treatment with that of traditional health insurance premiums. The bill defines HCSMs and outlines the criteria they must meet, including being not-for-profit organizations that facilitate the sharing of medical expenses among members who share common ethical or religious beliefs. Starting in tax year 2026, qualified individuals will be able to deduct their contributions to HCSMs from their Oklahoma adjusted gross income, and funds received from HCSM members for medical expenses will not be considered taxable income.

To claim these deductions, individuals must provide documentation of their HCSM membership and contributions, and the Oklahoma Tax Commission will be responsible for developing the necessary forms and guidelines. The bill also includes provisions for penalties against individuals who submit false documentation to claim deductions, including repayment of improperly claimed amounts and civil penalties. The act is set to take effect on November 1, 2025, and aims to ensure fairness in tax treatment for HCSM members.