OK SB1402

Creates a state income tax deduction for membership expenses paid to health care sharing ministries (HCSMs), including medical expense sharing contributions and administrative fees, beginning tax year 2027

Exempts from Oklahoma taxable income any amounts received by taxpayers from HCSMs to assist with medical expenses, beginning tax year 2027

Defines eligible HCSMs as 501(c)(3) nonprofit organizations that limit membership to those sharing common ethical or religious beliefs, facilitate voluntary medical expense sharing among members, and undergo annual independent audits

Requires qualified individuals to be Oklahoma residents who have been active HCSM members for at least one month during the tax year to claim the deduction or exemption

Effective date of November 1, 2026, with the Oklahoma Tax Commission required to promulgate rules and prescribe claim forms