West VirginiaWest Virginia taxes certified health plans based on premiums
Beginning July 1, 2027, West Virginia taxes certified HMOs based on their premiums if federal officials approve the tax for Medicaid funding.
What it does
Beginning July 1, 2027, West Virginia taxes premiums written in the state by certified HMOs at 2.5%, if federal officials approve the tax for Medicaid funding.
The state may collect the tax only after federal officials approve that year’s Medicaid rates as sound; the tax becomes void if officials decide it no longer qualifies for federal Medicaid funding.
Argument forA single rate based on premiums could apply more evenly across certified plans, regardless of how many members use Medicaid, Medicare, or commercial coverage.
Argument againstThe premium-based tax could add costs for health plans, which may affect what they can spend on care or other needs.
More detail
Beginning July 1, 2027, West Virginia levies a 2.5% tax on premiums written in the state by certified HMOs. The tax covers certified health maintenance organizations that provide health care in West Virginia. The tax applies at the same rate regardless of a plan’s share of Medicaid, Medicare, commercial, or other membership. It does not apply to Medicare Advantage plans, West Virginia Public Employees Insurance Agency health plans, or federal employee health plans to the extent federal law bars the tax. The transition to this tax structure depends on federal approval that it qualifies for federal Medicaid funding. The premium-based tax structure starts July 1, 2027; the earlier tax rules remain in effect until then.
The state may collect the tax only after federal officials approve Medicaid rates as sound for that tax year. This rule applies to the tax imposed on certified HMOs under this section. The tax becomes void if the Centers for Medicare and Medicaid Services decides it no longer qualifies for federal Medicaid funding. The collection rule applies for each taxable year. The tax becomes void when the federal agency makes the stated determination.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jun 29Chapter 285, Acts, Regular Session, 2026Latest
- Mar 30Approved by Governor Patrick Morrisey 3/27/2026Major
- Mar 25To Governor 3/25/26To Governor
- Mar 14Approved by Governor Patrick Morrisey 3/27/2026 - Senate JournalMajor
- Mar 14Approved by Governor Patrick Morrisey 3/27/2026 - House JournalBecame Law
- Mar 14To Governor 3/25/2026 - Senate JournalMinor
- Mar 13House received Senate message
- Mar 11Completed legislative action
- Vote recorded Passage. Result: pass.Upper
- Mar 11Communicated to House
- Mar 11Passed Senate (Roll No. 471)Passed Senate
- Mar 11Read 3rd timeMinor
- Mar 11On 3rd reading
- Mar 10Read 2nd timeMinor
- Mar 10On 2nd reading
- Mar 9Read 1st timeMinor
- Mar 9On 1st reading
- Mar 6Reported do passMinor
- Mar 4To FinanceMinor
- Mar 4To FinanceMinor
- Mar 4Introduced in SenateMinor
- Mar 2Communicated to Senate
- Vote recorded PASSAGE. Result: pass.Lower
- Mar 2Passed House (Roll No. 249)Passed House
- Mar 2Read 3rd timeMinor
- Mar 2On 3rd reading, Special Calendar
- Feb 27Amendment adopted (Voice vote)
- Feb 27Amendment reported by the Clerk
- Feb 27Read 2nd timeMinor
- Feb 27On 2nd reading, Special Calendar
- Feb 26Read 1st timeMinor
- Feb 26On 1st reading, Special Calendar
- Feb 25Do pass
- Feb 12To House FinanceMinor
- Feb 12Introduced in HouseMinor
- Feb 12To FinanceMinor
- Feb 12Filed for introductionIntroduced
HealthcareTaxes & Budget