HI HB1219

Extends the general excise tax exemption for TRICARE program managed care support contractors for two additional years, with the current exemption set to expire December 31, 2013.

Exempts amounts received by managed care support contractors for actual costs or advances to third-party health care providers on behalf of the U.S. Department of Defense from Hawaii state general excise tax.

TRICARE managed care support contractors advance funds to civilian health care providers for services delivered to TRICARE beneficiaries, with the Department of Defense reimbursing contractors for these costs.

The exemption, originally established under Act 70 of the 2009 Hawaii Session Laws, is extended to help avoid cost increases for TRICARE health care services.

Committee on Health recommends passage with referral to the Committee on Consumer Protection & Commerce.