by Logan Finney, Idaho Reports
House lawmakers are weighing a bill that would allow Idahoans to take advantage of medical savings accounts if they are part of a health care sharing ministry rather than a traditional health insurance plan.
Rep. Jordan Redman, R-Coeur d’Alene, presented House Bill 523 to the House Revenue and Taxation Committee on Wednesday. It would add “expenses paid by the account holder as a member of a health care sharing ministry” as eligible for tax benefits with an Idaho medical savings account.
“They can open an account [at a bank for an MSA], but they’re not going to see that tax deduction currently today,” Redman said.
Health care sharing ministries are faith-based nonprofits that operate similarly to insurance companies. Participants can voluntarily assist other members with paying their medical bills but are not legally compelled to do so. HCSMs are already recognized under state law but are generally unregulated.
Medical savings accounts allow eligible medical expenses to be deducted from state taxes. Health savings accounts are a similar option in the federal tax code.
“We want the HCSMs to be able to participate in a medical savings account,” Redman said. “If I go see a primary care physician, I’m still paying out of pocket. That’s what we’re looking to solve.”
Lawmakers on the tax panel discussed at length just how analogous HCSMs are to regular insurance companies, as well as which entities are responsible for how much of which medical payments.
“It’s not an insurance company. It sounds almost like a big GoFundMe page, frankly,” said Rep. Kenny Wroten, R-Nampa.
They also questioned exactly which money would be tax deductible if the legislation were to pass.
“I think the biggest disadvantage [for HCSMs] is that they can’t qualify for an HSA, whereas in Idaho we have MSAs,” Redman said. “This is just dealing with these state medical savings accounts.”
The committee voted to hold the bill until its next Wednesday meeting, to which Redman said he will bring representatives from the health care sharing ministries to better address his colleagues’ questions.
“It just appears that there are a number of members of our committee who have questions. I think it would be productive for us to have a little bit of time to do some research on our own,” said Rep. David Cannon, R-Blackfoot.
Logan Finney | Producer
Logan Finney is a North Idaho native with a passion for media production and boring government meetings. He grew up skiing, hunting and hiking in the mountains of Bonner County and has maintained a lifelong interest in the state’s geography, history and politics. Logan joined the Idaho Reports team in 2020 as a legislative session intern and stayed to cover the COVID-19 pandemic. He was hired as an associate producer in 2021 and they haven’t been able to get rid of him since.