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MN SF1572

MN SF1572
Health insurance claims assessment creation provision


summary

Introduced
02/20/2025
In Committee
02/20/2025
Crossed Over
Passed
Dead

Introduced Session

94th Legislature 2025-2026

Bill Summary

A bill for an act relating to taxation; gross revenues; creating a health insurance claims assessment; proposing coding for new law in Minnesota Statutes, chapter 295.

AI Summary

This bill establishes a new health insurance claims assessment in Minnesota that requires health plan companies and third-party administrators to pay a 2% assessment on paid claims. The bill defines numerous terms related to health care services, including detailed explanations of what constitutes "paid claims" and which types of claims are exempt from the assessment. Health plan companies and third-party administrators must file quarterly returns with the Commissioner of Revenue, reporting and paying the assessment by specific due dates. The collected funds will be deposited into the health care access fund and used specifically for administering MinnesotaCare and medical assistance programs. The bill provides mechanisms for collecting the assessment, including allowing companies to pass the cost onto employers or group health plan sponsors, with the requirement that the collection methodology be applied uniformly and only reflect the exact assessment amount. If a health plan company or third-party administrator fails to pay the assessment, they may face suspension or revocation of their operating license. The assessment will become effective on July 1, 2025, and applies to a wide range of health care services and claims, with numerous specific exclusions for certain types of claims such as workers' compensation, federal health programs, and individual cost-sharing expenses.

Committee Categories

Health and Social Services

Sponsors (3)

Last Action

Author added Draheim (on 03/20/2025)

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