Is Medi-Share Tax Deductible?

Since Medi-Share is a health sharing organization, and not a traditional Affordable Care Act-qualified insurance product, your monthly membership costs are not deductible on your individual income tax return.

However, since Medi-Share saves up to 50% compared to the unsubsidized cost of a traditional health insurance product, it’s often worthwhile to drop health insurance in favor of Medi-Share or other health sharing plans.

This is true even though Medi-Share and other health sharing programs do not qualify for a tax deduction.

About Medi-Share

With over 250,000 members, Medi-Share is one of the most popular Christian health sharing ministries in Colorado and the country.

It’s not a health insurance plan at all.

Instead, Medi-Share is a faith-based organization that provides an alternative to traditional health insurance.

Members pay a monthly fee and share in the costs of medical bills for other members.

Members can use Medi-Share for any shareable medical expense. Medi-Share is an excellent option for people who want to save money on their health care costs and who are willing to share the financial responsibility of medical care with others.

Learn More: How Does Health Sharing Work?

Why Isn’t Medi-Share Tax Deductible?

Normally, you can deduct the cost of your own personal health insurance premiums for your household as an individual.

However, Medi-Share and other health sharing plans are not insurance products. Instead, they are private, voluntary, non-profit associations of like-minded people who have joined together to help one another shoulder the burden of unexpected medical bills.

Unlike traditional health insurance companies, health sharing plans typically exclude people with pre-existing conditions as well as smokers. They also tend to attract more responsible and health-conscious people. As a result, health sharing plan costs are typically much lower than comparable traditional insurance products.

But since they aren’t traditional health insurance products, health sharing plan membership costs don’t qualify for a personal income tax deduction. 

Employers

If you are an employer paying for Medi-Share or any other health sharing plan on your employees’ behalf as an employee benefit, you can deduct your costs on your business income tax return as an employee benefit.

Health sharing plans do not qualify for inclusion in health reimbursement arrangements (HRAs) such as qualified small employer HRAs (QSE HRAs).

For small employers whose employees are generally in good health, Medi-Share can be a great alternative to overpriced traditional group health products.

The cost savings are significant compared to traditional group plans.

And unlike most traditional insurance plans, Medi-Share and most other health sharing plans allow your employees to choose their own doctors and other providers. They are not limited to a narrow network of approved healthcare providers.

Learn More: The 2024 Colorado Small Business Health Insurance Guide