Chairperson Smith opened the hearing for HB2445.

Adam Siebers, Office of Revisor of Statutes, HB2445 would enact the health care sharing ministries tax deduction act. The bill will  provide income tax subtraction modification for certain qualified health care sharing expenses paid by a qualified individual and certain qualified health care shares received by a qualified individual beginning with tax year 2027. (Attachment 1)

Mr. Siebers stood for questions from Committee members.

Chairperson Smith noted per the Kansas Department of Revenue, the fiscal note for HB2445 would decrease the State General Fund revenues by $400,000 in FY2027 and by $1.2 million in both BY2028 and FY2029. 

Proponents:

Joel Noble, Samaritan Ministries, testified as a proponent for HB2445 that will allow health care sharing ministry members to deduct both the shares they send to other members and the administrative fees on their Kansas state tax returns. Currently the shares are not considered deductible medical insurance expenses by the IRS and self-employed members of health care sharing ministry are currently unable to use the self-employed health insurance deduction on the federal form 1040. (Attachment 2)

Mr. Noble stood for questions from Committee members.

Rebekah Schwarz, Kansas Resident, testified as a proponent for HB2445 that will allow health care families to subtract from their Kansas adjusted gross income the amounts paid for Health Care Sharing Ministries membership, including monthly shares for medical expenses and administrative fees. Under current law, health insurance premiums receive clear, favorable tax treatment, but Health Care Sharing Ministries shares and fees lack parallel treatment even though the practical result helps families pay their medical bills.  (Attachment 3)

Ms. Schwarz stood for questions from Committee members.

Written only proponent testimony for HB2445 was submitted by Brittany Jones on behalf of Kansas Family Voice. (Attachment 4)

Opponent:

Laurel Burchfield, Mainstream Coalition, testified as an opponent for HB2445.  Mainstream members have fought to protect religious freedoms and maintain strong church-state separation because Kansans value their freedom to live as they see fit without the overreach of government or religion into their personal lives.  Mainsteam opposes HB2445 because it promotes an unethical, deceptive, and discriminatory practice by faith-based organizations that put Kansans' financial, physical, and mental health at risk. (Attachment 5)

Ms. Burchfield stood for questions from Committee members.

Neutral testimony was not submitted for HB2445.

Chairperson Smith closed the hearing for HB2445