HB 2627 Summary

• Exempts medical and dental services from Hawaii's general excise tax when provided to patients receiving Medicare, Medicaid, or TRICARE benefits

• Applies to hospitals, infirmaries, medical clinics, health care facilities, pharmacies, and medical or dental practitioners receiving payments under these federal programs

• Services may be performed by physicians, dentists, advanced practice registered nurses, pharmacists, physician's assistants, nurses, or other employees under a practitioner's direction

• Effective for taxable years beginning after December 31, 2024

• Addresses disparity where nonprofit hospital services are tax-exempt while individual and group medical practices are fully taxable