Decried as a tax burden that falls hardest on sick and low-income Minnesotans, the health care provider tax or "sick tax" has long been opposed by the MMA. It is currently set for repeal at the end of 2019.
The sick tax is a 2 percent tax on medical services that is paid out-of-pocket by patients or passed through to their health plan. The tax was originally passed by the Legislature in 1992 to fund MinnesotaCare, which helps low-income workers buy medical insurance.
The MMA supports the MinnesotaCare program but has urged lawmakers to find another funding source. The current situation is driving up the cost of health care, is unfair to Minnesotans who are insured through individual policies or by small-business employers, and falls most heavily on low-income Minnesotans.