Louisiana ~ Insurance Tax: Investment Credit Requirements for HMOs Adjusted

CCH Tax Day Report

Louisiana Gov. John Bel Edwards has signed legislation that, for purposes of claiming the insurance premium tax credit for qualifying Louisiana investments, requires a health maintenance organization (HMO) to:

— offer fully insured commercial or Medicare Advantage products;

— be domiciled and licensed in Louisiana;

— operate in Louisiana;

— maintain its primary corporate office and at least 70% of its employees in Louisiana; and

— maintain its core business functions (e.g., utilization review services, claim payment processes, customer processes, customer service call centers, enrollment services, information technology services, and provider relations) in Louisiana.

In addition, the legislation removes the January 1, 2019, sunset date on investments made by HMOs that qualify for the credit.

Act 313 (H.B. 664), Laws 2017, effective January 1, 2018



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