Health Sharing Ministries as alternative to health insurance

by Dawn Pitman
(Navarre, FL)

Our church has opted out of traditional health insurance and instead recommend (not required) that our pastors join a health sharing ministry such as Samaritan Ministries.

They pay a monthly "share" amount to another member of the health sharing ministry for needed health costs.

Can this be considered a non-taxed benefit whether included in our pastors pay to cover that expense or paid for by the church directly. I'm thinking either way it's taxable but wanted to confirm.

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Health Sharing Ministry Payments Taxable
by: Vickey

I just got back from a church tax conference and was told that according to IRC 106 payments to a medical sharing organization are completely taxable to an employee of the church and the amounts of those payments must be added to Box 1 of their W-2.

They also mentioned that if the church was going to do that they should seek professional guidance to create a self-insured plan that both complies with federal tax laws and with the ACA (Affordable HealthCare Act).

I can recommend Sommerville & Associates, P.C. in Arlington, TX. Their website is: www.nonprofit-tax.com

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