Understanding The Affordable Care Act

HealthCare Sharing is exempt from Obamacare.

Members of Recognized Health Care Sharing Ministries are Exempt From the Requirement to Have Health Insurance.

THE ACA. The new health care reform legislation is called The Patient Protection and Affordable Care Act (ACA). It’s more commonly referred to as ‘Obamacare’.

INDIVIDUAL MANDATE. The ACA legislation contains many provisions that are complex and detailed about our nation’s health care. Among these provisions is the ‘individual mandate’, the requirement that every American purchase health insurance. Under the law, you must purchase health insurance by March 31, 2014, be exempt from the law, or face a fine imposed and collected by the IRS.

BE EXEMPT. Members of recognized health care sharing ministries are exempt from the mandate to purchase health insurance by 2014 or face financial penalties. Enrollment with a recognized health care sharing ministry REMOVES your requirement under the healthcare mandate to purchase health insurance.

RECOGNITION. To maximize resources between ministries, in 2016 Solidarity HealthShare joined with Melita Christian Fellowship Hospital Aid Plan (Melita), a healthcare sharing ministry recognized by the Centers for Medicare & Medicaid Services (CMS). As a result, the members of Solidarity HealthShare have the security of being members of a recognized healthcare sharing ministry. Solidarity HealthShare is a healthcare sharing ministry of Melita which is the non-profit organization that facilitates the sharing of qualifying medical costs between members.

EXEMPTION ACTION POINT. PERSONAL TAXES The IRS has prepared tax forms where taxpayers claim exemption as a member of a healthcare sharing ministry. These forms are simple to fill out and fairly easy to understand.

Follow these basic steps: 

Step 1: Calculate your ‘Shared Responsibility Payment’ on Form 8965
Step 2: Claim the months that you were a part of a healthcare sharing ministry as an exemption in Part III of Form 8965 using code ‘D’.
Step 3: Report on line 61 of Form 1040 the ‘Shared Responsibility Payment’ which was calculated from Form 8965

Form 8965 just asks for the Code under which members are exempt. Members of a healthcare sharing ministry utilize a Code “D” exemption. On Form 8965, leave Parts I and II blank, and in Part III, members simply write in the letter “D” in the column titled “Exemption Type.”

In the event an accountant or tax preparer asks for the name of the recognized HCSM through which members share medical bills, the formal name of our Health Care Sharing Ministry is: Melita Christian Fellowship Hospital Aid Plan, Solidarity HealthShare is a health care sharing ministry of that entity.

Obviously, you or your tax preparer will be able to access the Forms referenced above. Have questions? The Solidarity HealthShare team is here to help you! Contact us anytime.