OK SB736

Creates an Oklahoma income tax deduction for contributions to health care sharing ministries (HCSMs), effective for tax year 2026 and beyond, allowing members to deduct qualified expenses from adjusted gross income

Defines qualifying HCSMs as 501(c)(3) nonprofits that limit membership to those sharing ethical/religious beliefs, facilitate medical expense sharing, conduct annual public audits, and disclaim being insurance companies

Makes funds received from HCSM members to assist with medical expenses nontaxable income for Oklahoma residents

Treats employer contributions toward employee HCSM membership as nontaxable fringe benefits, similar to traditional health insurance premiums

Imposes penalties for fraudulent claims including repayment of improperly claimed deductions, $500 civil penalty per offense, and 3-year ineligibility for future deductions