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Health share comparison - are health sharing plans tax deductible

Are health sharing plans tax deductible

Are Health Sharing plans Like OneShare Tax Deductible


Important Update on OneShare


OneShare has recently been accredited by The Healthcare Sharing Accreditation Board. The Healthcare Sharing Accreditation Board is an independent entity formed to review the operations of ministries to determine if they meet the highest standards. They review everything in the organization: member communications, guidelines, financials, governing documents, etc. They ensure that the ministry meets all of their core tenets and then grant accreditation if they do. OneShare Health is only the third ministry to get the accreditation. https://hcsab.org/

Additionally, to date (Jan 2026) they have shared almost 280 million dollars ( $279.212,555 to be exact). In the last 12 months they have received $47,564,074 in member contributions and have shared $21,008,250 in medical bills.

You can quote/enroll HERE


This question comes up often when comparing health sharing plans and regular health insurance.

It's mainly a question for self-employed people and small businesses.

We need the full picture to make an informed decision on health sharing.

Let's jump right into the question of whether health sharing plans are tax deductible.

You can always jump to a health sharing quote here:


health sharing for short term plans in California

Otherwise, let's look at the question in a little more detail to make sure we're all clear:

  • What is the health insurance tax deduction
  • Do health sharing plans have the same tax deduction
  • Comparing the costs of health sharing plans and traditional plans

First, let's specify what deduction we're talking about.

What is the health insurance tax deduction

Many people do not realize that health insurance premiums can be deductible.


This is primarily for self-employed people.

It's line 29 on the 1040 tax form:

health insurance tax deduction

If you are self-employed, you're allowed to deduct up to your net business income amount for health insurance premium.

This can also apply to insurance premiums for other types of coverage such as dental and vision.

This can be a pretty big tax deduction in today's world depending on whether you're getting a tax credit on the exchange (more on that later).

Keep in mind that this deduction is "above the line" on the 1040.

This means that if figures into your Adjusted Gross Income.

You would then apply your tax rate to see what your real "out of pocket" amount it.

For example:

  • We payed $4K in health insurance premium for a year
  • Our Federal and State combined tax percentage is 25%.
  • Our real "after-tax" difference is then $1K ($4K x .25).

That's the amount that really matters...what we'll have to pay or get back at tax filing time.

If your income is all w2, you would not have this tax deduction.

This is a huge tax benefit to self-employment income.

If you are 1099, that essentially means you're self-employed in terms of how the IRS looks at it.

Okay...so what about health sharing plans?

Do health sharing plans have the same tax deduction

Health sharing plans are not officially health insurance plans.

Health sharing plans are memberships essentially where members share healthcare costs with each other.

They therefore do not have this deduction for self-employment health insurance.

Can I use a QSEHRA with a health sharing plan?

Currently, it does not appear that we can use a QSEHRA to pay for health sharing membership costs.

The law which thrusted the QSEHRA into the spotlight specifies a MEC or Minimal Essential Coverage.


This has a very specific meaning under the law and health sharing plans currently have not been deemed to meet this requirement.


Of course, check with your accountant for updates and clarifications!

This entire field is in constant flux!

IRS would need to provider further guidance but for now, health sharing does not appear be eligible for the tax deduction on line 29 of the 1040 or under a QSEHRA.

Can I use an HSA with health sharing plans?

Currently, you are not able to fund an HSA account based on having a health sharing plan.

HSA's require a very specific type of health INSURANCE plan called a HDHP plan.

Health sharing plans are memberships...not insurance.


They do not qualify for the HSA funding and deduction.

So, how do we compare the tax implication and "cost" of health sharing plans versus traditional health insurance?

Comparing the costs of health sharing plans and traditional plans

In our example above, we were losing $1000/year in after-tax money (assuming self-employed).

That's approximately $80/month.

We can think of that as an addition to the monthly membership cost for a health sharing plan.

So...

Let's assume we're in our 50's.

  • An OneShare $5000 plan (the most popular) might run approximately $360/month.
  • The Bronze ACA health plans might run $700/month depending on area and carriers available.

That's a different of $340/month (roughly half) with the health sharing plan.

Now, if we're self-employed, we might add back in $80/month to the $340 to get a total of $420.

Now the savings is $280/month.


Roughly $3360/year in savings.

This assumes we're self employed.

Of course, there are other big differences between health sharing plans and Obamacare plans which we need to understand.

We're strictly looking at the tax treatment difference between the two options.

Again, make sure to check in with your accountant and definitely research the other differences.

You can also compare the Health sharing plans here.

We're happy to help with any questions.

There is ZERO cost for our assistance!


You can run your short term health sharing quote here to view rates and plans

Again, there is absolutely no cost to you for our services. Call 800-320-6269 Today!


Frequently Asked Questions
▸ Are health sharing plan payments tax deductible like traditional health insurance premiums?
Generally, health sharing plan contributions are NOT deductible as health insurance premiums under federal tax law, because health sharing plans are not classified as insurance. This is a key financial difference from traditional health insurance, and it's worth discussing with a tax professional for your specific situation.
▸ Can I use an HSA (Health Savings Account) with a health sharing plan?
In most cases, health sharing plan members are not eligible to contribute to an HSA, because HSA eligibility typically requires enrollment in a qualifying high-deductible health plan (HDHP) - and health sharing plans do not meet that federal definition. Consult a tax advisor to confirm how this applies to your situation.
▸ Can a small business use a QSEHRA to reimburse employees for health sharing plan costs?
Whether a QSEHRA (Qualified Small Employer HRA) can be used to reimburse health sharing plan costs is a nuanced area of tax law that has evolved over time. It's strongly recommended to consult a licensed agent and a tax professional before assuming reimbursement is permitted, as rules can change.
▸ How do the costs of health sharing plans compare to traditional California health insurance?
Health sharing plans may appear to have lower monthly contributions than some traditional plans, but they lack the regulatory consumer protections required of licensed insurance - such as guaranteed coverage of pre-existing conditions. For a side-by-side look at traditional California options, consider getting a covered California quote to compare real costs.
▸ Are health sharing plans regulated the same way as health insurance in California?
No - health sharing plans are generally not regulated as insurance by the California Department of Insurance, which means standard consumer protections (like guaranteed issue and mandated benefits) typically do not apply. Californians should carefully review a plan's membership guidelines before enrolling, and may want to speak with a licensed agent about the differences.
The answers above are general information about California health insurance and may change as rates, plans, and rules are updated each year. They are not a substitute for personalized advice. For current, personalized guidance, please contact us, email help@calhealth.net, or call 800-320-6269. Serving California since 1994.