KS SB368

Creates a Kansas state income tax deduction for taxable years beginning after December 31, 2026, allowing qualified individuals to subtract health care sharing ministry membership costs, contributions, and administrative fees from their federal adjusted gross income when calculating Kansas taxes.

Excludes from Kansas taxable income any qualified health care shares received by members to assist with medical expenses, providing a subtraction if such amounts were included in federal adjusted gross income.

Limits the annual deduction to $5,000 for individuals and $10,000 for married couples filing jointly, with deductions only allowed for amounts not already claimed on federal returns.

Defines eligible health care sharing ministries as 501(c)(3) nonprofits with shared ethical or religious beliefs, voluntary member contributions, no assumption of risk or promise to pay, quarterly financial statements, annual independent audits, and required disclaimers stating the organization is not insurance.

Requires qualified individuals to be Kansas residents and members of a health care sharing ministry for at least one month during the taxable year to claim the deduction.