This bill amends existing taxation laws to remove the sunset date for a gross receipts tax deduction related to copayments or deductibles paid by insured individuals to health care practitioners. It also introduces new deductions for receipts from the sale of medical equipment, supplies, and drugs, as well as for health care services provided by practitioners that are not contracted with managed care organizations or health care insurers. Additionally, it mandates that health care providers receiving Medicaid reimbursement be compensated for all applicable gross receipts taxes they are required to pay.

The bill includes specific legal language changes, such as the removal of the sunset provision and the addition of new definitions and deductions related to health care services and products. It establishes that deductions must be reported separately and included in the tax expenditure budget for evaluation purposes. Furthermore, it requires managed care organizations to specify applicable gross receipts taxes in their Medicaid reimbursement rates, ensuring transparency in the reimbursement process. The provisions of this act are set to take effect on July 1, 2025.

Statutes affected:
introduced version: 7-9-93
HC substitute: 7-9-93