This bill amends existing tax regulations for health insurance providers in Washington State, specifically increasing the insurance premium tax rate from two percent to three percent for certain health maintenance organizations and health care service contractors, effective March 1, 2027. It also introduces a new tax structure for disability insurers and group stop loss insurance providers, imposing a one percent tax on premiums and prepayments for health care services starting March 1, 2028. The bill outlines the prepayment obligations for these taxes, requiring taxpayers to make prepayments based on their previous year's tax obligations, with specific due dates throughout the year.

Additionally, the bill clarifies the definition of "taxpayer" to include disability insurers and specifies the types of health care services that will be taxed, including those related to dentistry and optometry. It maintains the existing exemptions for certain federal and state payments and ensures that the tax prepayment obligations transfer with contracts for health care services between taxpayers. The act is set to take effect on July 1, 2026.

Statutes affected:
Original bill: 48.14.0201