Dentistry prepayments

From the 2024 DOR Tax Exemption Study

48.14.0201(6)(c) - Dentistry prepayments Description Health service contractors and health maintenance organizations are exempt from the insurance premiums tax for amounts received for dental coverage. However, this exemption does not apply to: - Amounts received for pediatric oral services that qualify as coverage for the minimum essential coverage requirement. - Stand-alone family dental plans when offered in the individual market or to a small group. Purpose To reduce the cost of providing dental coverage. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $1.436 $1.436 $1.436 $1.436 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $1.316 $1.436 $1.436 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Based on historical insurance premium data, the annual average of $574.3 million for dental premiums and prepayments is a constant. Data Sources - Office of Insurance Commissioner, Insur