KS HB2445

Kansas residents who are members of health care sharing ministries may deduct membership contributions and administrative fees from their state adjusted gross income for taxable years beginning after December 31, 2026

Health care sharing ministries must be 501(c)(3) nonprofits that limit membership to those sharing common ethical or religious beliefs and facilitate voluntary contributions among members to cover medical expenses

Qualifying ministries must provide quarterly statements showing total needs submitted and amounts assigned to members, conduct annual audits by independent CPAs, and include written disclaimers stating they are not insurance companies

Amounts received by members from a health care sharing ministry to pay medical expenses are excluded from Kansas taxable income, with a subtraction modification available if such amounts were included in federal adjusted gross income

The deduction only applies to expenses not already deducted on the taxpayer's federal return, and taxpayers must provide documentation to the Kansas Department of Revenue to verify eligibility