The bill mandates that health care providers be reimbursed for gross receipts taxes when they contract with managed care organizations for Medicaid reimbursement. Specifically, it requires that these organizations reimburse providers for all applicable gross receipts taxes related to the contracted health care services. Additionally, the managed care organizations must provide documentation that clearly distinguishes the Medicaid reimbursement from the gross receipts taxes paid to the providers.

To implement this, a new section is added to the Public Assistance Act, defining "managed care organization" and "Medicaid" in the context of this reimbursement requirement. The bill is set to take effect on January 1, 2026.