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STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
SENATE BILL 1402 By: Gillespie
AS INTRODUCED
An Act relating to income tax; creating the Health
Care Sharing Ministries Tax Parity Act; providing
short title; defining terms; providing deduction for
certain qualified expenses for certain tax years;
exempting certain amount received by an individual
taxpayer from taxable income for certain tax years;
requiring claims to be made on prescribed form;
requiring the Oklahoma Tax Commission to promulgate
rules; providing for noncodification; providing for
codification; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law not to be
codified in the Oklahoma Statutes reads as follows:
This act shall be known and may be cited as the “Health Care
Sharing Ministries Tax Parity Act”.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 2358.8 of Title 68, unless there
is created a duplication in numbering, reads as follows:
A. As used in this act:
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1. “Health care sharing ministry” (HCSM) means a not-for-profit
organization that is tax-exempt under Section 501(c)(3) of the
Internal Revenue Code of 1986, as amended, and:
a. limits its members to those who share a common set of
ethical or religious beliefs,
b. acts as a facilitator among members who have financial
or medical needs to assist those with financial or
medical needs in accordance with criteria established
by the health care sharing ministry,
c. provides for the financial or medical needs of a
member through contributions from other members,
d. provides amounts that members may contribute with no
assumption of risk or promise to pay among the members
and no assumption of risk or promise to pay by the
health care sharing ministry to the members,
e. provides to the members a written statement at least
quarterly with the total dollar amount of qualified
medical needs actually shared in the previous
reporting period in accordance with criteria
established by the health care sharing ministry,
f. is annually audited by an independent certified public
accountant or firm of certified public accountants
which is made available to the public by providing a
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copy upon request, or by posting on the website of the
organization, and
g. provides a written disclaimer on or accompanying all
applications and guideline materials distributed by or
on behalf of the organization that reads, in
substance: “Notice: The organization facilitating
the sharing of medical expenses is not an insurance
company, and neither its guidelines nor plan of
operation is an insurance policy. Whether anyone
chooses to assist you with your medical bills will be
totally voluntary because no other member will be
compelled by law to contribute toward your medical
bills. As such, participation in the organization or
a subscription to any of its documents should never be
considered to be insurance. Regardless of whether you
receive any payments for medical expenses or whether
this organization continues to operate, you are always
personally responsible for the payment of your own
medical bills.”;
2. “Qualified health care share received” means an amount an
individual taxpayer receives as a qualified individual and as a
result of membership in an HCSM to assist with a medical expense;
3. “Qualified health care sharing expenses” means amounts paid
by a qualified individual for membership in an HCSM for the
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individual or the spouse or dependent of the individual, which shall
include:
a. the sharing of medical expenses with respect to the
HCSM, and
b. the payment of administrative fees of the HCSM; and
4. “Qualified individual” means any resident of this state who
has been an active member of an HCSM for at least one (1) month
during the tax year in which a deduction or exemption authorized
pursuant to this section is claimed.
B. For tax year 2027 and subsequent tax years, there shall be
allowed a deduction from Oklahoma adjusted gross income in the
amount of qualified health care sharing expenses by a qualified
individual.
C. For tax year 2027 and subsequent tax years, any qualified
health care share received by an individual taxpayer shall be exempt
from taxable income.
D. The exemption and deduction provided by this section shall
be claimed on a form prescribed by the Oklahoma Tax Commission. The
Commission shall promulgate rules to implement the provisions of
this section including requirements for verifying claims.
SECTION 3. This act shall become effective November 1, 2026.
60-2-2912 QD 12/31/2025 12:08:39 AM