Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF2352

Introduced
3/10/25  

Caption

Health insurers premium tax modifications provision

Impact

One of the bill’s significant impacts is the repeal of certain existing subdivisions within the Minnesota Statutes that previously defined various types of health insurers. This change would streamline definitions pertinent to health plan companies, potentially making tax collection more efficient. Furthermore, the bill establishes new mechanisms for offsetting premium tax liability against payments made for assessments related to insolvencies, which could financially benefit insurance companies by allowing them to carry forward unused offsets into subsequent years, thus influencing their overall tax obligations positively.

Summary

Senate File 2352, introduced in the Minnesota legislature, seeks to amend current statutes concerning the taxation of health insurers. The bill aims to modify the way health insurance premium taxes are assessed and collected by incorporating changes that affect direct business definitions for insurance companies, particularly around stop-loss insurance related to self-insured employee health benefits. Notably, the bill introduces a new subdivision specifically defining health plan companies and adjusts how taxes are levied based on gross premiums received.

Contention

Discussion surrounding SF2352 has been centered on its implications for health care funding and the operational dynamics of health insurance providers in Minnesota. While proponents argue that such modifications will enhance the sustainability of the healthcare access fund by ensuring a more consistent tax revenue flow from health plan companies, there is concern among critics that the changes might disproportionately benefit larger insurers at the expense of smaller organizations. The debate reflects broader discussions on how to balance public health funding needs with the financial viability of insurance providers operating in a competitive market.

Companion Bills

MN HF2071

Similar To Insurance premium tax; tax on health insurers modified.

Previously Filed As

MN SF783

Tax provisions modifications

MN SF49

Health insurance provisions modifications and appropriations

MN SF5020

State personnel management provisions modifications

MN SF2890

Human services provisions modification

MN SF4276

Behavioral health provisions modifications

MN SF4091

Various tax provisions modification

MN SF2966

Human services provisions modification

MN SF2981

Tax provisions modifications

MN SF2553

Cannabis provisions modifications

MN HF1372

Various policy and technical changes made to individual income and corporate franchise taxes, fire and police state aids, tax-related data practices provisions, and other miscellaneous taxes and tax provisions.

Similar Bills

MN HF916

Tax expenditure provisions modified, and past tax expenditure purpose statements provided.

MN HF3284

REAL ID implementation law repealed.

MN SF3492

REAL ID implementation law repealer

MN HF20

Wage credits modified and reimbursement provided, general fund transfers authorized, unemployment insurance aid provided, report required, and money appropriated.

MN SF32

Wage credits modification and reimbursement provision; unemployment insurance aid establishment and appropriation

MN SF4803

Various independent school district construction projects sales and use tax exemption provision and appropriation

MN HF4840

Refundable sales and use tax exemptions provided for independent school district construction projects.

MN HF5267

Governor's budget bill for early childhood programs; child welfare and child care licensing provisions modified; technical changes to early childhood law made; Department of Children, Youth, and Families recodification updated; and money appropriated.