Bill > SB389

This bill expands an existing general excise tax exemption to include healthcare professionals such as optometrists, audiologists, and chiropractors for healthcare-related goods or services purchased under Medicare, Medicaid, and TRICARE programs. Building upon Act 47 from the 2024 Hawaii legislative session, which originally exempted physicians, dentists, advanced practice registered nurses, and pharmacists from general excise tax for similar services, this bill aims to further encourage cost-effective patient outcomes by extending the tax exemption to additional healthcare providers. The bill specifically defines the relevant healthcare programs - Medicare as the federal health insurance program for seniors established under the Social Security Act, Medicaid as the joint federal and state health coverage program for low-income individuals, and TRICARE as the military health system managed by the Defense Health Agency. The tax exemption applies to healthcare-related services that may be performed not just by the licensed practitioners themselves, but also by employees like physician's assistants and nurses working under their direction. The bill will take effect immediately upon approval by the appropriate legislative authorities.

Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=389&year=2026