HB 114 / SB 144 – Gross Premium Tax/PHPs

House Primary Sponsors: Rep. Josh Dobson (R-Avery), Rep. Donny Lambeth (R-Forsyth), Rep. Julia Howard (R-Davie)

Senate Primary Sponsors: Sen. Ralph Hise (R-Madison)

This bill was filed jointly in the House and Senate.

Bill Summary

This bill would subject prepaid health plans licensed by the Department of Insurance to the gross premium tax.

The bill states that gross premiums from business done in this state in the case of prepaid health plans means all capitation payments received by a prepaid health plan from the Department of Health and Human Services. The bill states that capitation payments refunded by a prepaid health plan to the State are the only allowable deductions.

The bill states that the tax rate to be applied to gross premiums is 1.9%. The net proceeds would be credited to the General Fund.

This is the bill’s attached fiscal note can be found here.

Senate Bill Update

This bill was amended in the Senate to extend the date of enactment of legislation applying the gross premiums tax to Medicaid capitation payments to prepaid health plans from March 15, 2019 until June 30, 2019.

Bill Movement


This bill was filed on February 19, 2019. This bill passed in the House Finance Committee on February 27, 2019. This bill passed in the House Rules Committee on March 4, 2019. This bill will now move to the House floor.


This bill was amended in the Senate Finance Committee on March 13, 2019.

This bill passed the Senate Rules committee on March 13, 2019.

The Senate version of this bill was turned into a UNC System Athletic Scholarship bill in the House Rules Committee.