OK HB2942

Creates a state income tax deduction for contributions paid to Health Care Sharing Ministries (HCSMs), allowing members to deduct these expenses from adjusted gross income beginning January 1, 2027

Defines qualifying HCSMs as 501(c)(3) nonprofits that limit membership based on shared ethical or religious beliefs, facilitate medical expense sharing, require annual independent audits, and disclaim being insurance companies

Treats employer contributions toward employee HCSM membership as nontaxable fringe benefits and exempts funds received from HCSM members for medical expenses from state income tax

Imposes penalties for fraudulent claims including repayment of improperly claimed deductions, a $500 civil penalty per offense, and 3-year ineligibility from claiming the deduction

Requires Oklahoma Tax Commission to develop implementation forms and issue annual reports to the Legislature on deductions claimed and fiscal impact; effective November 1, 2026