Impact of Health-Care Sharing Ministry payments instead of paying insurance premium?
Healthcare Sharing Ministry Taxable Considerations
Our denomination's group health coverage monthly premium will go up in cost to over $1200.00 a month starting Jan. 1, 2016.
This is too much for our small church to be able to pay for the pastor.
Can he join a "health-care sharing" ministry and can the church pay the monthly 'share' (which is like the insurance premium) for him? Will it be considered income or will it be non-taxable?
Connie, this is a very good question. I have been receiving similar questions the last few weeks, such as this one from Kary...
"Is Christian Healthcare considered a membership or Insurance? I know it is accepted under Obama care, but Do I include that on the minister's 941 and W2 forms?"
My answer to that post and this one is:
Healthcare Sharing is not considered insurance.
I belong to a healthcare sharing ministry too. I took this excerpt off their (Samaritan Ministries) site: "...healthcare sharing ministries satisfies the federal health care law’s (Affordable Care Act, U.S. Public Law 111-148) requirement that you have insurance or pay a penalty-tax (see 26 United States Code Section 5000A, (d), (2), (B))".
So we know that donating or memberships to a healthcare sharing ministries will keep us as individuals from having to pay the Affordable Care Act (ACA) penalties when we file our personal taxes; however...
from the research I have found the "payments/reimbursements to healthcare sharing ministries may constitute taxable compensation to employees because the arrangements do not meet the traditional definition of qualified group health insurance coverage."
Excerpt from Busby's publication: 5 Roads to Healthcare Reimbursements
You can find a link to that publication on Wisdom Over Wealth's Healthcare Tax Credit
I think that as healthcare premiums continue to soar...this is going to be a very hot topic!