Insurance - Premium Receipts Tax - Exemption for Captive Insurance Procured by Nonprofit Hospitals and Health Care Systems

HB 1228 exempts premiums paid by nonprofit hospitals and health care systems in Maryland for their own captive insurance (insurance they set up themselves) from the state's 3% premium receipts tax. This applies to all entities within the system, including parent companies, subsidiaries, and affiliated providers. The bill removes the tax obligation for these organizations on qualifying captive insurance premiums and prohibits the state from collecting past-due taxes, fees, or penalties related to this tax before the law takes effect. It directly affects nonprofit health care providers across Maryland by reducing their insurance-related costs.