Did Legislation Pass in 2018 to Allow Healthcare Sharing Ministries to Take Advantage of an HSA?

Health Savings Accounts (HSAs) have become increasingly popular in recent years as a way for individuals to save money on healthcare expenses while also reducing their tax burden. One common question that arises is whether legislation was passed in 2018 to allow healthcare sharing ministries to take advantage of an HSA.

Healthcare sharing ministries are organizations where members contribute a set amount each month to help cover each other's medical expenses. Unlike traditional health insurance, these ministries are often based on religious principles and do not operate under the same regulations.

In 2018, there was indeed legislation passed that expanded the eligibility for HSAs to include certain healthcare sharing ministries. This was done through an amendment to the tax code, specifically in section 1402 of the Internal Revenue Code.

This change allowed individuals who are members of healthcare sharing ministries that meet the requirements outlined in the legislation to also participate in an HSA. This means that they can enjoy the tax advantages and savings that come with having an HSA, just like individuals with traditional health insurance.

Health Savings Accounts (HSAs) have become increasingly popular in recent years, providing a tax-efficient way for individuals to save for healthcare costs. A common inquiry among those involved with healthcare sharing ministries is whether legislation was passed in 2018 that would allow these groups to take advantage of HSAs.