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IA HSB762
SB
Status
3/10/2026
Primary Sponsor
Ways and Means
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AI Summary
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Creates a new health care tax fund under the Department of Health and Human Services, replacing the previous Medicaid managed care organization premiums fund structure.
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Imposes a health care-related tax on health maintenance organizations (HMOs) at 3.5% of taxable funds from January 1 through September 30, 2026, then reduces to 0.95% from October 1, 2026 onward.
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Defines "taxable funds" as payments received by HMOs for health care services, insurance, and indemnity benefits, excluding federal Medicare payments under the Social Security Act.
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Exempts health maintenance organizations from the standard insurance company premium tax under Section 432.1, establishing a separate taxation framework in new Chapter 432B.
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Requires health care-related tax payments by March 1 following each calendar year, with the insurance commissioner authorized to suspend or revoke licenses of HMOs that fail to pay by the due date.
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.(See HF 2739.)
Last Action
Committee report approving bill, renumbered as HF 2739.
3/13/2026