Humana Pharmacy Unit Sales Draw Minnesota Income Tax, Judge Says

Humana Inc. subsidiaries failed to convince the Minnesota Tax Court that pharmacy benefits management services one subsidiary provided to another aren’t taxable in the state because they were received in Wisconsin.

Humana Pharmacy Solutions Inc. administered retail, mail order, and specialty drug pharmacy benefits for Humana Insurance Co.'s members. Humana argued HIC received those services entirely in Wisconsin, so 2016 receipts from the services aren’t attributable to Minnesota for corporate franchise tax purposes.

But the tax court sided with the revenue commissioner’s decision denying Humana’s request for a refund of more than $830,000, agreeing that the services were received by ...