SF102 (Legislative Session 94 (2025-2026))
Hospitals and health care providers gross tax revenue repeal and technical changes made
AI Generated Summary
Purpose
- Repeals the gross revenues tax on hospitals and health care providers and makes related technical changes to tax and health care financing provisions.
Main Provisions
- Repeal of the gross revenues tax on hospitals and health care providers.
- Technical amendments to Minnesota statutes to update definitions used in tax and health care expenditure calculations.
- Repeal of multiple existing statutory sections and related administrative rules tied to taxes, provider taxes, and health care assessments.
- Amendments to how health plan expenditures and related costs are defined and calculated (see definitions below).
Changes to Existing Law (Key Provisions)
- Definitions and measurement of health care expenditures:
- Defines “health plan company” (as used in the section) and clarifies how total and net expenditures are calculated.
- Total expenditures: includes incurred claims or expenditures on health care services, administrative expenses, charitable contributions, and all other payments made by health plan companies from premium revenues.
- Net expenditures: equals total expenditures minus exempted taxes and assessments and minus payments or allocations to maintain reserves.
- Exempted taxes and assessments: includes direct tax payments to government agencies, contributions to certain health associations, specific provider taxes and surcharges (e.g., Minnesota Comprehensive Health Association, medical assistance providers surcharge, MinnesotaCare provider tax), assessments by named associations, and any new assessments imposed by state or federal law.
- Consumer cost-sharing or subscriber liability: includes enrollee coinsurance, copayments, deductibles, and amounts beyond benefit plan maximums.
- Repealed or significantly changed authorities and rules:
- Repeals specific statutory sections and subsections (e.g., 13.4967, various subsections of 295.50 through 295.59, and related subsections).
- Repeals related Minnesota Rules (e.g., parts 4650.0102 subpart 24e and 4652.0100 subpart 20.1.12).
- These repeals remove or alter taxes, assessments, and administrative provisions tied to the former gross revenues tax structure and related health financing mechanisms.
Definitions (Key Terms Used in the Bill)
- Health plan company: defined for purposes of the section (reference to section 62Q.01).
- Total expenditures: all payments by health plan companies from premium revenues, including health care service costs, admin costs, charitable contributions, and other payments.
- Net expenditures: total expenditures minus exempted taxes/assessments and reserve-related payments.
- Exempted taxes and assessments: a wide list of taxes and assessments that are excluded when calculating net expenditures (including government taxes, various provider surcharges, and certain association assessments).
- Consumer costsharing or subscriber liability: enrollee-related amounts such as coinsurance, copayments, deductibles, and benefit maximum exceedances.
Potential Effects and Implications
- Financial impact on hospitals and health care providers due to the repeal of the gross revenues tax.
- Changes to how health plan expenditures are calculated and what counts as net expenditures, which can affect the tax base and any remaining related assessments.
- Elimination or modification of certain funding streams and programs tied to provider taxes and assessments (e.g., allocations to health associations and provider surcharges).
- Administrative and compliance changes resulting from the repealed statutes and rules.
Repealed Provisions (Overview)
- Statutory sections repealed or substantially altered: 13.4967, 295.50 (multiple subsections), 295.51 (multiple subsections), 295.52 (multiple subsections), 295.53 (subsections), 295.54, 295.55, 295.56, 295.57, 295.58, 295.581, 295.582, 295.59.
- Minnesota Rules: 4650.0102 subpart 24e; 4652.0100 subpart 20.1.12.
- Overall effect: reduces or removes taxes/assessments connected to the gross revenues tax regime and related health care financing structures.
Relevant Terms - gross revenues tax - hospitals - health care providers - total expenditures - net expenditures - exempted taxes and assessments - consumer costsharing - subscriber liability - health plan company - Minnesota Comprehensive Health Association - medical assistance providers surcharge - MinnesotaCare provider tax - Health Coverage Reinsurance Association - Minnesota Life and Health Insurance Guaranty Association - Minnesota Risk Adjustment Association - Minnesota Statutes 2024 sections listed (various) - Minnesota Rules parts 4650.0102 subpart 24e and 4652.0100 subpart 20.1.12
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| January 16, 2025 | Senate | Action | Introduction and first reading | ||
| January 16, 2025 | Senate | Action | Referred to | Taxes | |
| January 21, 2025 | Senate | Action | Author added | ||
| Senate | Action | See |
Citations
[
{
"analysis": {
"added": [
"Adds definitions: health plan company, total expenditures, net expenditures, exempted taxes and assessments, and consumer costsharing or subscriber liability."
],
"removed": [],
"summary": "This bill amends Minn. Stat. 62J.041, subdivision 1 to add definitions for health plan company, total expenditures, net expenditures, exempted taxes and assessments, and consumer costsharing or subscriber liability.",
"modified": []
},
"citation": "62J.041",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill amends Minn. Stat. 214.16, subdivision 3.",
"modified": []
},
"citation": "214.16",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill amends Minn. Stat. 256B.04, subdivision 25.",
"modified": []
},
"citation": "256B.04",
"subdivision": "subdivision 25"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill amends Minn. Stat. 256B.0625, subdivision 13e.",
"modified": []
},
"citation": "256B.0625",
"subdivision": "subdivision 13e"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill amends Minn. Stat. 270B.14, subdivision 1.",
"modified": []
},
"citation": "270B.14",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill amends Minn. Stat. 289A.38, subdivision 6.",
"modified": []
},
"citation": "289A.38",
"subdivision": "subdivision 6"
},
{
"analysis": {
"added": [],
"removed": [
"Minn. Stat. 13.4967, subdivision 3 is repealed."
],
"summary": "This bill repeals Minn. Stat. 13.4967, subdivision 3.",
"modified": []
},
"citation": "13.4967",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [],
"removed": [
"Minn. Stat. 295.50 subdivisions 1, 1a, 2, 2a, 2b, 3, 4, 6, 6a, 7, 7a, 9b, 9c, 10a, 10c, 12b, 13, 13a, 14, 15, 16 are repealed."
],
"summary": "This bill repeals Minn. Stat. 295.50 along with the listed subdivisions.",
"modified": []
},
"citation": "295.50",
"subdivision": "subdivisions 1, 1a, 2, 2a, 2b, 3, 4, 6, 6a, 7, 7a, 9b, 9c, 10a, 10c, 12b, 13, 13a, 14, 15, 16"
},
{
"analysis": {
"added": [],
"removed": [
"Minn. Stat. 295.51 subdivisions 1 and 1a are repealed."
],
"summary": "This bill repeals Minn. Stat. 295.51, subdivisions 1 and 1a.",
"modified": []
},
"citation": "295.51",
"subdivision": "subdivisions 1, 1a"
},
{
"analysis": {
"added": [],
"removed": [
"Minn. Stat. 295.52 subdivisions 1, 1a, 2, 3, 4, 4a, 5, 6, 8 are repealed."
],
"summary": "This bill repeals Minn. Stat. 295.52, subdivisions 1, 1a, 2, 3, 4, 4a, 5, 6, and 8.",
"modified": []
},
"citation": "295.52",
"subdivision": "subdivisions 1, 1a, 2, 3, 4, 4a, 5, 6, 8"
},
{
"analysis": {
"added": [],
"removed": [
"Minn. Stat. 295.53 subdivisions 1, 2, 3, 4a are repealed."
],
"summary": "This bill repeals Minn. Stat. 295.53, subdivisions 1, 2, 3, and 4a.",
"modified": []
},
"citation": "295.53",
"subdivision": "subdivisions 1, 2, 3, 4a"
},
{
"analysis": {
"added": [],
"removed": [
"Minn. Stat. 295.54 is repealed."
],
"summary": "This bill repeals Minn. Stat. 295.54.",
"modified": []
},
"citation": "295.54",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"Minn. Stat. 295.55 is repealed."
],
"summary": "This bill repeals Minn. Stat. 295.55.",
"modified": []
},
"citation": "295.55",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"Minn. Stat. 295.56 is repealed."
],
"summary": "This bill repeals Minn. Stat. 295.56.",
"modified": []
},
"citation": "295.56",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"Minn. Stat. 295.57 is repealed."
],
"summary": "This bill repeals Minn. Stat. 295.57.",
"modified": []
},
"citation": "295.57",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"Minn. Stat. 295.58 is repealed."
],
"summary": "This bill repeals Minn. Stat. 295.58.",
"modified": []
},
"citation": "295.58",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"Minn. Stat. 295.581 is repealed."
],
"summary": "This bill repeals Minn. Stat. 295.581.",
"modified": []
},
"citation": "295.581",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"Minn. Stat. 295.582 is repealed."
],
"summary": "This bill repeals Minn. Stat. 295.582.",
"modified": []
},
"citation": "295.582",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [
"Minn. Stat. 295.59 is repealed."
],
"summary": "This bill repeals Minn. Stat. 295.59.",
"modified": []
},
"citation": "295.59",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minn. Stat. 256.9657 for the medical assistance providers surcharge; it does not repeal or amend this section.",
"modified": []
},
"citation": "256.9657",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill uses the existing definition in Minn. Stat. 62Q.01 to define 'health plan company' within the amended 62J.041.",
"modified": []
},
"citation": "62Q.01",
"subdivision": ""
}
]Progress through the legislative process
In Committee