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, such as 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 who are active members of an HCSM will be able to deduct their contributions from their Oklahoma adjusted gross income. Additionally, employer contributions towards HCSM memberships will be treated as nontaxable fringe benefits.

To implement this act, the Oklahoma Tax Commission is tasked with developing necessary forms and guidelines for claiming the deductions. The bill also stipulates that funds received from HCSM members to assist with medical expenses will not be considered taxable income. Furthermore, it establishes penalties for 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.