By:Morgan Chilson and Anna Kaminski
Kansas Reflector
TOPEKA — Gov. Laura Kelly vetoed legislation Thursday that provides income tax deductions for Kansans enrolled in health care sharing ministries plans, but one day later, the Legislature overrode her decision.
Kelly said these types of plans can leave everyday people with “huge medical bills,” but Republican Rep. Ron Bryce of Coffeyville said the bill had to do with basic tax fairness for those who use alternatives to traditional insurance.
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 Thursday news release. “These health care ministries aren’t regulated, which opens the door to all sorts of fraud and abuse.”
Kelly said her veto wasn’t about limiting the ability to practice faith freely, but ensuring Kansans use health plans that cover their medical expenses.
On Friday, the House voted 87-37 and the Senate voted 30-9 along party lines to overturn the veto.
Bryce said Kansas’ tax code should treat health care ministry contributions and benefits similarly to how traditional insurance is covered. The legislation, he said, respected religious liberty and individual responsibility.
In testimony on the bill earlier this year, 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.”
House Speaker Dan Hawkins, a Wichita Republican, said in a Thursday news release that he was 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,” he said.
Senate President Ty Masterson, an Andover Republican, promised on Thursday that his chamber would 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 initially passed the House by 87-36 and the Senate by 33-7.