Sec. 12-202a. Tax on net direct subscriber charges of health care centers. Exceptions.
Sec. 12-202a. Tax on net direct subscriber charges of health care centers. Exceptions. (a) Each health care center, as defined in section 38a-175, that is governed by
sections 38a-175 to 38a-192, inclusive, shall pay a tax to the Commissioner of Revenue
Services for the calendar year commencing on January 1, 1995, and annually thereafter,
at the rate of one and three-quarters per cent of the total net direct subscriber charges
received by such health care center during each such calendar year on any new or renewal
contract or policy approved by the Insurance Commissioner under section 38a-183.
Such payment shall be in addition to any other payment required under section 38a-48.
(b) Notwithstanding the provisions of subsection (a) of this section, the tax shall
not apply to:
(1) Any new or renewal contract or policy entered into with the state on or after
July 1, 1997, to provide health care coverage to state employees, retirees and their
dependents;
(2) Any subscriber charges received from the federal government to provide coverage for Medicare patients;
(3) Any subscriber charges received under a contract or policy entered into with
the state to provide health care coverage to Medicaid recipients under the Medicaid
managed care program established pursuant to section 17b-28, which charges are attributable to a period on or after January 1, 1998;
(4) Any new or renewal contract or policy entered into with the state on or after
April 1, 1998, to provide health care coverage to eligible beneficiaries under the HUSKY
Medicaid Plan Part A, HUSKY Part B, or the HUSKY Plus programs, each as defined
in section 17b-290;
(5) Any new or renewal contract or policy entered into with the state on or after
April 1, 1998, to provide health care coverage to recipients of state-administered general
assistance pursuant to section 17b-192;
(6) Any new or renewal contract or policy entered into with the state on or after
February 1, 2000, to provide health care coverage to retired teachers, spouses or surviving spouses covered by plans offered by the state teachers' retirement system;
(7) Any new or renewal contract or policy entered into on or after July 1, 2001, to
provide health care coverage to employees of a municipality and their dependents under
a plan procured pursuant to section 5-259;
(8) Any new or renewal contract or policy entered into on or after July 1, 2001, to
provide health care coverage to employees of nonprofit organizations and their dependents under a plan procured pursuant to section 5-259;
(9) Any new or renewal contract or policy entered into on or after July 1, 2003, to
provide health care coverage to individuals eligible for a health coverage tax credit and
their dependents under a plan procured pursuant to section 5-259;
(10) Any new or renewal contract or policy entered into on or after July 1, 2005,
to provide health care coverage to employees of community action agencies and their
dependents under a plan procured pursuant to section 5-259; or
(11) Any new or renewal contract or policy entered into on or after July 1, 2005,
to provide health care coverage to retired members and their dependents under a plan
procured pursuant to section 5-259.
(c) The provisions of this chapter pertaining to the filing of returns, declarations,
installment payments, assessments and collection of taxes, penalties, administrative
hearings and appeals imposed on domestic insurance companies shall apply with respect
to the charge imposed under this section.
(May Sp. Sess. P.A. 94-4, S. 49, 85; P.A. 95-160, S. 64, 69; June 18 Sp. Sess. P.A. 97-11, S. 57, 65; P.A. 98-110, S.
25, 27; P.A. 00-174, S. 78, 83; P.A. 01-30, S. 3, 4; June 30 Sp. Sess. P.A. 03-6, S. 65; P.A. 04-218, S. 14; P.A. 05-238, S. 2.)
History: May Sp. Sess. P.A. 94-4, S. 49, effective January 1, 1995, and applicable to premiums due on or after said
date; P.A. 95-160 revised effective date of May Sp. Sess. P.A. 94-4 but without affecting this section; June 18 Sp. Sess.
P.A. 97-11 exempted new or renewal contracts and policies with the state on or after July 1, 1997, to provide health care
coverage to state employees, retirees and their dependents, and exempted subscriber charges received from the federal
government for Medicare patients, effective July 1, 1997; P.A. 98-110 divided the section into Subsecs. (a) to (c), inclusive,
and added new Subdivs. (3) and (4) to Subsec. (b) to exempt state contracts under Sec. 17b-28, Husky Plan contracts and
state-administered general assistance, effective May 19, 1998; P.A. 00-174 added Subsec. (b)(6) re an exemption for
policies entered into with the state providing coverage to retired teachers and by making technical changes for accuracy
of reference, effective May 26, 2000; P.A. 01-30 added Subsec. (b)(7) and (8) to exempt contracts or policies procured
under Sec. 5-259 that cover employees of municipalities or nonprofit organizations, effective July 1, 2001; June 30 Sp.
Sess. P.A. 03-6 added Subsec. (b)(9) re new or renewal contracts or policies entered into on or after July 1, 2003, for
coverage of health coverage tax credit eligible individuals, effective August 20, 2003; P.A. 04-218 amended Subsec. (a)
to specify applicability of section to centers governed by Secs. 38a-175 to 38a-192, inclusive, and to specify that the tax
applies to charges approved by the Insurance Commissioner, effective June 8, 2004, and applicable to income years
commencing on or after January 1, 2005; P.A. 05-238 made technical changes in Subsec. (b), amended Subsec. (b)(7) to
include dependents, added Subsec. (b)(10) and (11) re employees of community action agencies and their dependents and
re retired members and their dependents, effective July 1, 2005, and applicable to income years commencing on or after
January 1, 2005.