Earlier this year the Louisiana Fifth Circuit Court of Appeal issued a series of opinions in cases related to drugs for Medicare patients. The court held that healthcare providers’ purchases of prescription drugs from wholesalers and distributors were exempt from sales tax when the drugs were administered to Medicare patients. The court concluded that the drugs were purchased through, or pursuant to, Medicare Part B plans and because the purchases satisfied the requirements of the statutory exemption, the transactions qualified for exemption from Louisiana sales tax.
These cases demonstrate that exemption eligibility often depends on the facts of the transaction, not just the product being purchased. Even when the same products are involved, tax treatment can vary based on whether the purchase is tied to a specific exempt program, patient, or statutory requirement. For healthcare providers and suppliers, evaluating the circumstances of a purchase is just as important as evaluating the product itself. (Renal Treatment Centers-Southeast, LP v. Normand; DVA Healthcare Renal Care, Inc. v. Normand; Renal Life Link, Inc. v. Normand; and Total Renal Care, Inc. v. Normand (La. Ct. App. 5th Cir. April 2, 2026)).