Bill Description: House Bill 783 would clarify that money paid to a health care sharing ministry qualifies as an eligible medical expense from an Idaho medical savings account.
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Does it directly or indirectly create or increase any taxes, fees, or other assessments? Conversely, does it eliminate or reduce any taxes, fees, or other assessments?
Under Idaho law, most medical expenses can be paid from an Idaho Medical Savings Account (MSA), to which contributions (up to $10,000 per individual per year) are exempt from Idaho income tax.
Current law (and Tax Commission guidance) does not classify money paid to a health care sharing ministry as an eligible medical expense that can be paid from an MSA.
House Bill 783 would amend Section 63-3022K, Idaho Code, to explicitly say “expenses paid by the account holder as a member of a health care sharing ministry as defined in section 41-121, Idaho Code” qualify as an eligible medical expense. This would be in addition to expenses for medical care described in section 213(d) of the Internal Revenue Code and long-term care expenses, which is the current definition.
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