June 18, 2024
Effective May 26, 2024, healthcare sharing ministries in West Virginia are exempted from the state’s insurance laws. A healthcare sharing ministry is one where members share a common set of ethical or religious beliefs and provide for the financial or medical needs of a member through contributions from other members.
In addition to stating that a healthcare sharing ministry shall not be considered as being engaged in the business of insurance for the purpose of regulation by the Insurance Commissioner, the law requires that such an entity hire an independent certified public accounting firm to conduct annual audits of the organization to be made available to the public. The law further mandates that a healthcare sharing ministry provide a written disclaimer to prospective members that the organization facilitating the sharing of medical expenses is not an insurance company, that payment of any medical expenses by the organization is totally voluntary because no other participant can be compelled by law to contribute towards the medical bills, and that a member who receives medical care is always personally responsible for the payment of his or her medical expenses. The law also provides that participation as a member in a healthcare sharing ministry shall satisfy a requirement by a West Virginia public institution of higher education that the student purchase healthcare insurance.
Employers in the state may want to be aware of this development.
West Virginia Code Section 35-1B-1 through 5
PPI Benefit Solutions does not provide legal or tax advice. Compliance, regulatory and related content is for general informational purposes and is not guaranteed to be accurate or complete. You should consult an attorney or tax professional regarding the application or potential implications of laws, regulations or policies to your specific circumstances.
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