TOPEKA — Gov. Laura Kelly vetoed a bill that would provide income tax deductions for Kansans enrolled in health care sharing ministries plans, saying the organizations can leave everyday people with “huge medical bills.”
Health care sharing ministries are nonprofit organizations, often formed by people of the same faith or religious belief, to share health care costs by contributing monthly to a pool.
Senate Bill 368 allows for tax modifications based on qualified health care expenses or for shares received from those organizations, according to a legislative report.
“There’s a reason that regulators across the country are taking action against these so-called health care ministries because too often, everyday people are left with huge medical bills,” Kelly said in a news release Thursday. “These health care ministries aren’t regulated, which opens the door to allsorts of fraud and abuse.”
Kelly said her veto isn’t about limiting the ability to practice faith freely, but ensuring Kansans use health plans that cover their medical expenses.
In testimony on the bill, the American Cancer Society Cancer Action Network, American Lung Association and Blood Cancer United raised concerns about health care sharing ministries being unregulated.
“HCSMs reserve the right to refuse to pay for services related to an individual’s pre-existing conditions, even after accepting the person as a member of the HCSM,” the testimony said. “They do not have to comply with requirements that limit out-of-pocket costs for patients, including caps on coverage, and they frequently exclude coverage of certain benefits.”
In addition, if a person isn’t getting adequate care though a fund, they may not be eligible to enroll in coverage through the Affordable Care Act because that wouldn’t be a qualifying event, the testimony said.
Proponents of the bill included the Kansas Catholic Conference, Americans for Prosperity and Kansas Family Voice.
Chuck Weber, executive director of the Kansas Catholic Conference, said the ministries act as not-for-profit clearinghouses to connect people with medical bills and those willing to pay them.
“It is important to note that members are still personally responsible for their own medical bills,” he said. “But members are grateful to be able to participate in a program where like-minded families pray for each other and help shoulder large, unexpected expenses.”
Speaker of the House Dan Hawkins said in a news release that he’s disappointed Kelly vetoed “straightforward tax relief” for families using health care plans that fit their needs.
“House Republicans believe families should have more flexibility and more control over their healthcare decisions, not fewer options and higher costs,” Hawkins said.
Senate President Ty Masterson said the Legislature will override the veto.
“Laura Kelly has deliberately chosen to drive up the cost of healthcare for the many Kansans that choose to use healthcare sharing ministries with her veto of SB 368,” he said. “This bi-partisan bill simply provides a tax deduction for Kansas taxpayers that use these important sharing ministries to cover healthcare costs for their families.”
The bill passed the House and Senate with votes along party lines. The House passed it 87 to 36 and the Senate, 33 to 7.
