December 15, 2022
Based on a law passed in 2011, Minnesota’s provider tax, which is assessed on the gross revenues received by physicians and other healthcare providers for patient services, will be reduced by 11% for 2023—from 1.8% to 1.6%.
The provider tax is deposited into the Health Care Access Fund (HCAF) and is used to fund the MinnesotaCare program and other programs designed to ensure affordable access to healthcare services.
In 2011, the Legislature passed a law that requires the Commissioner of Management and Budget to determine the projected balance in the HCAF each year and, if the revenues are projected to exceed 125% of the needed expenditures, the Commissioner shall reduce the tax to reduce the structural balance in the fund. The reduced rate is just for that calendar year. For more information, refer to Minnesota Statute 295.52, subdivision 8. The rate change for 2023 is the first time this provision has been triggered.
The current surplus in the HCAF was partially caused by increased federal payments for Medical Assistance and MinnesotaCare that reduced the state expenditures that were needed for these programs.
The provider tax was originally adopted by the Legislature in 1992 with the creation of the MinnesotaCare program. It was originally set at a rate of 2%. The tax was permanently reduced to 1.8% in 2019.
May 2, 2024
On April 29, the Minnesota House of Representatives passed legislation that would require a person whose firearm is lost or stolen to report it to law enforcement within 48 hours of the loss or theft. Not doing so the first time would result in a petty misdemeanor, with greater penalties for future failures.
May 2, 2024
At least two of the MMA’s top priorities continue to advance at the Capitol, as both the Senate and House health omnibus bills were referred to the floor for a vote after being heard in their respective finance committee.
May 2, 2024
The Senate Commerce and Consumer Protection Committee heard legislation on April 30 allowing more Minnesotans to purchase health coverage through MinnesotaCare, by offering a “public option.”