Loophole from Obamacare for Christians

Since I began my career as a CPA in 1985, my approach toward tax planning and strategy has been to find loopholes to minimize taxes to help individuals and businesses keep the money they earn.  Obamacare is a violation of the 1st and 4th Amendments to the US Constitution for born again Christian believers like myself, as well as the Commerce Clause, contrary to what the Supreme Court ruled on this issue.  At present, I haven’t discovered a loophole out of Obamacare for people who aren’t followers of Jesus other than noncompliance with the law (not buying insurance and paying or avoiding paying the penalty/tax for not having insurance).

For the Christian whose conscience won’t allow them to be part of this socialist power-grab, an excellent alternative to Obamacare is a Christian insurance group called Christian Medishare at http://mychristiancare.org/medi-share/.  Medishare legally exempts people from the 1st and 4th Amendment violations of Obamacare under IR Reg Sec 1.5000A-3(b)(2).

For legal purposes, they can’t call the program insurance because of legal issues with the insurance industry – but it works the same as any other health insurance plan you may have had.  The reason it isn’t called, “insurance,” is because it works like a self-insurance co-operative and the insurance lobbyists legally maneuvered to keep them from calling this, “insurance.”  One thing my MS in tax law has taught me is to ignore the legalese and get to the reality of what something is.  The main thing that makes it different from traditional insurance plans is that you set up your “own” account in a credit union (ACCU) where you contribute your “share” aka insurance premiums each month.  Christian Medishare has access to your account from which they extract funds to pay covered claims for other members.  The insurance industry prevented the Organization from using pooled funds to pay claims.  This is all semantics.

If you have a Christian ministry or you’re a Christian business owner, under Section 105 of the Internal Revenue Code you can offer alternative benefit plans to people.  So you have the option of offering a plan such as Christian Medishare to your employees while also providing other insurance coverage for those who don’t want to be a part of it.

Here are the premium costs and deductibles listed as of November, 2013 for a family of 3 or more:

Program Options

Annual Household Portion

$500

$1,250

$2,500

$3,750

$5,000

$7,500

$10,000

Standard Monthly Share N/A $713.00 $620.00 $556.00 $503.00 $429.00 $347.00
Healthy Monthly Share N/A $581.00 $499.00 $445.00 $401.00 $338.00 $267.00
Conditions apply. Please read below for details.

New members pay a one-time $120 member fee that is paid with the first monthly share payment. There is also a one-time ACCU fee of $5 for setting up your sharing account. Health Partners pay an additional $80 per month.

Preexisting conditions are not eligible for reimbursement for 3 years. Years 4-5 you’re eligible for reimbursement of 100k/year toward a preexisting condition and then 500k/year after that on preexisting conditions. They used to have annual and lifetime limits on coverage for nonpreexisting conditions but no longer. Once your annual deductible is met (which their legalese calls “Annual Household Portion”) your out of pocket medical is reimbursed 100%.

Christian Medishare is a PPO so you get a card you give to your doctor so that prenegotiated discounted rates apply to your care costs.

Christian Medishare didn’t pay me to share this information and did not approve of this description of their program.  Neither Messenger Finance Corporation nor Forrest Messenger, CPA makes claims as to the accuracy of the above information related to the Organization’s plan.  You need to explore this on your own and deal with the Organization’s rules and qualifications to become a member.

Circular 230 Disclosure: The following is required pursuant to the US Department of Treasury.

Circular 230, which sets forth best practices for tax advisors. To the extent the above contains an opinion on one or more federal tax issues, this communication is not intended to be used, and it may not be used, by you or any other person or entity, for the purpose of avoiding any penalties that may be imposed on you or any other person or entity under the United States Internal Revenue Code.

Certified Public Accounting and Consulting