Health Benefit Exchange

From the 2024 DOR Tax Exemption Study

Issue Date January 08, 2021 Intended audience: Health care provider. Starting Jan. 1, 2021, health care providers are exempt from business and occupation (B&O) tax on services performed for patients covered by a qualified health plan offered by a health carrier who contracts with the Washington Health Care Authority. What is exempt? Amounts received by a health care provider for services covered by a qualified health plan offered under RCW 41.05.410 are exempt from B&O tax. This includes: Reimbursements received from the qualified health plan. Any amounts collected from the patient as part of the patient’s cost-sharing obligation. How do I claim the B&O tax exemption? You must report amounts received under the appropriate B&O tax classification. These may include, but are not limited to, the following: Service and Other Activities. Service and Other Activities ($1 million or greater in prior year). Public or Nonprofit Hospitals ( RCW 82.04.260 ). For Profit Hospitals ( WAC 458-20-168 ). You must then claim a deduction under Qualified Washington Health Benefit Exchange Plans equal to the amount covered by a qualified health plan. More information Visit the Washington Health Benefit