Jump directly to the Content

Q&A: Are Group Health Sharing Plan Costs Eligible for FSA Reimbursement?

Current guidance suggests no—unless it is part of a fully developed and compliant self-insured health plan.

Q&A: Are Group Health Sharing Plan Costs Eligible for FSA Reimbursement?
Image: Iryna Drozd | Getty

Our church has several employees who opt out of group health insurance and instead elect to participate in a group “health sharing plan.” It is my understanding that any out-of-pocket health expenses incurred by an employee are eligible for a Flexible Spending Account (FSA), provided they are included on the Internal Revenue Service’s (IRS) list of eligible reimbursed expenses.

Could you please clarify if the monthly “subscription” or “membership” cost for a health sharing plan paid by these employees could be covered as an FSA reimbursement?

And, more generally speaking, are there any situations in which a church pays the membership fee for a health sharing plan as a part of any tax-free fringe benefit plan?

Membership fees or subscription costs to a faith-based health sharing plan have not been considered as a medical expense under the current ...

Join now to access this member-only content

Become a Member

Already a member? for full access.

Related Topics:
Posted:
  • March 15, 2021

Related ResourcesVisit Store

2021 Church & Clergy Tax Guide (Book)
2021 Church & Clergy Tax Guide (Book)
The most comprehensive and authoritative tax guide available.
Understanding Wage and Hour Laws
Understanding Wage and Hour Laws
Learn about the Fair Labor Standards Act and how it applies to churches.
Understanding Church Insurance
Understanding Church Insurance
Understand your church's insurance needs to be assured you have adequate coverage.
Smart Money for Church Salaries
Smart Money for Church Salaries
This resource takes you on a journey through real-life case studies to uncover compensation issues and navigate their solutions.