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

The bill also defines key terms, including "managed care organization" and "Medicaid," to clarify the scope of the legislation. The provisions of this act are set to take effect on January 1, 2026.