Montana SB554 revises laws for nonprofit hospitals, limiting charges and imposing a tax on excess charges.

Montana SB554 revises laws for nonprofit hospitals, prohibiting them from charging more than 300% of the Medicare reimbursement rate for services to qualifying patients. It imposes an excise tax on hospitals that exceed this rate, with tax rates increasing annually from 2027 to 2030. The bill also mandates financial assistance and community benefit policies for hospitals, requires annual reporting, and establishes a tax account for collected funds. The Department of Revenue is tasked with implementing rules and collecting taxes, penalties, and interest.

Montana SB554 revises laws for nonprofit hospitals, limiting charges and imposing a tax on excess charges.

Montana SB554 revises laws for nonprofit hospitals, prohibiting them from charging more than 300% of the Medicare reimbursement rate for services to qualifying patients. It imposes an excise tax on hospitals that exceed this rate, with tax rates increasing annually from 2027 to 2030. The bill also mandates financial assistance and community benefit policies for hospitals, requires annual reporting, and establishes a tax account for collected funds. The Department of Revenue is tasked with implementing rules and collecting taxes, penalties, and interest.