The West Virginia Health Care Broad Based Tax is imposed on the privilege of engaging in business within this state in the following areas: ambulatory surgical centers, independent laboratory of X-ray services, inpatient hospital services, intermediate care facility services for individuals with an intellectual disability, nursing facility services, and licensed free-standing psychiatric or medical rehabilitation hospitals. File the HCP-3A through MyTaxes.
A health care provider tax is an annual broad-based fee on providers that’s designed to make healthcare more affordable for West Virginia residents. The tax is imposed on all providers who render physician services in the state and is levied at a rate of two percent. It is collected by the State Department of Health and Human Resources. The tax revenue helps pay for healthcare coverage that includes high-deductible health insurance plans and retiree health coverage.
In addition to this 2% tax, a provider can collect a state sales tax from their patients. However, not all consumers are obligated to pay sales tax under West Virginia law. Exemptions include government agencies, some nonprofit organizations, and merchants who purchase goods for resale. These buyers must provide a valid exemption or resale certificate before making a purchase.
The state legislature is considering a bill to increase the tax on health care providers to help fund Medicaid expansion. It would also increase the federal matching funds the state can receive by increasing the provider tax on a certain type of hospital. The new legislation will be considered by the House and Senate this year.
Health Care Broad-Based Tax
A Health Care Broad-Based Tax is a tax imposed on a wide range of healthcare providers and services within a specific jurisdiction. Here’s a closer look at its key characteristics:
- This tax applies to the gross receipts received by providers of various healthcare services within West Virginia.
- The tax rate varies depending on the service provided. You can find details on the West Virginia Tax Division website https://tax.wv.gov/.
- Filing for this tax and remitting payments is done through the WV/HCP-3E form.
Provision of Managed Care Tax
The Provision of Managed Care Tax in West Virginia applies to Health Maintenance Organizations (HMOs) that operate in the state. Here’s a breakdown of the key points:
- This tax is levied on Health Maintenance Organizations (HMOs) licensed in the state.
- There’s a tiered structure based on the number of non-Medicaid member months. You can find details on the specific rates in the West Virginia Legislature website https://tax.wv.gov/Business/ExciseTax/HealthCareTax/Pages/HealthCareTa
Acute Care Hospital Tax
The West Virginia Acute Care Hospital Tax specifically targets inpatient and outpatient hospital services provided by most hospitals in the state. Here’s a closer look:
- This is an additional tax on eligible acute care hospitals within West Virginia.
- The tax rate is subject to change and is published by the State Tax Commissioner. Current information can be found on the West Virginia Tax Division website https://tax.wv.gov/.
