Self employed health insurance deduction

[Fluffyduck]

I have a client who has health care coverage from Christian Healthcare Ministries. They say it isn't really insurance, but is health coverage. Anyone know if that is still deductible. All other qualifications are met.

[FEDUKE404]

SEHI qualifying insurance

The IRS rules for the SEHI exclusion are very clear.

From an IRS Tax Tip: "The deduction is for medical, dental or long-term care insurance premiums that self-employed people often pay for themselves, their spouse and their dependents."

If the "health coverage" is for something like disability or it pays a fixed $ amount for conditions A or B or C, then it likely cannot be considered for SEHI.

FE

[ATSMAN]

That coverage from the Church is NOT health insurance. Basically it is a pooled fund collected from membership to pay for medical expenses based on some income guideline and formula. There is no "insurance policy" in a true sense.

[geekgirldany]

It is not deductible, as said it is money pooled together that members then use to pay medical expenses. I had a few clients involved in one for several years.

[Fluffyduck]

Thanks for the help.

[Burke]

It is not deductible, as said it is money pooled together that members then use to pay medical expenses. I had a few clients involved in one for several years.

Would it be considered some type of HRA account if they are contributing to it?

[geekgirldany]

No, not according to my insurance. I forget the name of the organization, basically they referred to it as a co-op for medical expenses. The money is put into an escrow account and then given to members as they need them for medical expenses.

[MAMalody]

It is interesting to note that per ACA, it is considered a medical plan and meets the mandate requirements. My guess is in the event of an audit it would be allowed.

[TaxGuyBill]

It is interesting to note that per ACA, it is considered a medical plan and meets the mandate requirements. My guess is in the event of an audit it would be allowed.

I disagree. A "health care sharing ministry" qualifies for an EXEMPTION to the penalty, but it is NOT "minimum essential coverage", and I don't think it is a "health plan".

http://www.law.cornell.edu/uscode/text/26/5000A#d_2_B

http://www.law.cornell.edu/uscode/text/26/5000A#f

http://www.law.cornell.edu/cfr/text/45/160.103