S. 653 — A bill to amend the Internal Revenue Code of 1986 to treat membership in a health care sharing ministry as a medical expense, and for other purposes.

This section (1) amends the definition of qualified medical expenses under IRC §213(d) to include membership fees, sharing of medical expenses, and administrative fees for health care sharing ministries (HCSMs, i.e., faith-based nonprofit organizations through which members share medical costs according to common ethical or religious beliefs); and (2) adds a new IRC §7702C providing that HCSMs are not treated as health plans or insurance for tax purposes. The changes apply to taxable years beginning after December 31, 2025.