Health care providers would deduct certain patient payments from taxable receipts

Eligible providers would be allowed to subtract required patient payments from receipts used to calculate gross receipts tax, a tax on business receipts. Covered payments include copayments, deductibles, and coinsurance—the patient’s share of a covered medical bill. Payments must follow the patient’s private insurance plan, and services must fall within the provider’s allowed practice. Medicare and Medicaid services would not qualify. Provider associations cannot be tax-exempt charitable organizations, health maintenance organizations, hospitals, hospices, nursing homes, or entities that operate solely as licensed outpatient or intermediate care facilities. The proposal names July 1, 2026, as its effective date. The patient-payment deduction would apply only before July 1, 2031.