Bill Description: House Bill 523 would allow Health Care Sharing Ministry expenses to be paid from a Medical Savings Account and receive the associated tax benefit. 

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Does it directly or indirectly create or increase any taxes, fees, or other assessments? Conversely, does it eliminate or reduce any taxes, fees, or other assessments?

Under Section 63-3022K, Idaho Code, individuals can deduct up to $10,000 annually from the income reported on their Idaho individual income taxes when the money is saved in an Idaho Medical Savings Account (MSA). The cap is increased to $20,000 for a married couple filing jointly. Interest earned on the money in an MSA is also deductible. The money saved in an MSA is only tax deductible if it is used for eligible medical expenses and long-term care costs.

House Bill 523 would amend Section 63-3022K, Idaho Code, to define "expenses paid by the account holder as a member of a health care sharing ministry as defined in section 41-121, Idaho Code," as an "eligible medical expense" for the purpose of using an MSA and receiving the associated tax benefit. 

Currently, Idaho law favors traditional health insurance and supplemental Medicare premiums over health care sharing ministries by categorizing only payments for the former as eligible medical expenses. This bill would create parity by recognizing that payments to health care sharing ministries are also eligible medical expenses and should receive the same benefits. 

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