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IA HF2739
Bill
Status
3/13/2026
Primary Sponsor
Ways and Means
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AI Summary
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Reduces the tax rate on health maintenance organizations (HMOs) from 3.5% to 0.95% of taxable funds, effective October 1, 2026, with the lower rate continuing for 2027 and subsequent years.
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Creates a new "health care tax fund" in the state treasury under the Department of Health and Human Services to receive tax revenues collected from HMOs under the new Chapter 432B.
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Requires HMOs to pay the health care-related tax by March 1 following the calendar year for which the tax is due, with the insurance commissioner authorized to suspend or revoke licenses for non-payment.
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Authorizes transfers from the taxpayer relief fund to supplement appropriations for the Department of Health and Human Services.
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Exempts payments made to HMOs by the U.S. Secretary of Health and Human Services under federal Medicare contracts from the taxable funds calculation.
Legislative Description
A bill for an act relating to state finances by modifying the taxes imposed on health maintenance organizations, making transfers from the taxpayer relief fund, making and supplementing appropriations to the department of health and human services, and including effective date, contingent effective date, applicability, and retroactive applicability provisions.(Formerly HSB 762.)
Last Action
Placed on Ways and Means calendar. H.J. 673.
3/16/2026