Minnesota 2025-2026 Regular Session

Minnesota House Bill HF2071 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to taxation; insurance premium tax; modifying the tax on health insurers;
3	3	1.3 amending Minnesota Statutes 2024, sections 297I.01, subdivision 6a, by adding
4	4	1.4 a subdivision; 297I.05, subdivision 5; 297I.20, subdivision 1; repealing Minnesota
5	5	1.5 Statutes 2024, section 297I.01, subdivisions 4, 10, 11.
6	6	1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
7	7	1.7 Section 1. Minnesota Statutes 2024, section 297I.01, subdivision 6a, is amended to read:
8	8	1.8 Subd. 6a.Direct business.(a) "Direct business" means all insurance provided by an
9	9	1.9insurance company or its agents, and specifically includes stop-loss insurance purchased
10	10	1.10in connection with a self-insurance plan for employee health benefits or for other purposes,
11	11	1.11but excludes:
12	12	1.12 (1) reinsurance in which an insurance company assumes the liability of another insurance
13	13	1.13company; and
14	14	1.14 (2) self-insurance.
15	15	1.15 (b) For purposes of this subdivision, an insurance company includes a nonprofit health
16	16	1.16service corporation, health maintenance organization, and community integrated service
17	17	1.17network health plan company.
18	18	1.18 EFFECTIVE DATE.This section is effective for premiums received after December
19	19	1.1931, 2025.
20	20	1Section 1.
21	21	REVISOR EAP/HL 25-0207801/29/25
22	22	State of Minnesota
23	23	This Document can be made available
24	24	in alternative formats upon request
25	25	HOUSE OF REPRESENTATIVES
26	26	H. F. No. 2071
27	27	NINETY-FOURTH SESSION
28	28	Authored by Norris and Gander03/10/2025
29	29	The bill was read for the first time and referred to the Committee on Commerce Finance and Policy 2.1 Sec. 2. Minnesota Statutes 2024, section 297I.01, is amended by adding a subdivision to
30	30	2.2read:
31	31	2.3 Subd. 17.Health plan company."Health plan company" means a health plan company
32	32	2.4as defined in section 62Q.01, subdivision 4; a county-based purchasing plan authorized
33	33	2.5under section 256B.692; an integrated health partnership authorized under section 256B.0755;
34	34	2.6and a group health plan sponsor. Notwithstanding the foregoing, health plan company does
35	35	2.7not include a corporation as defined in section 317A.011, a nonprofit limited liability
36	36	2.8company organized under section 322C.1101, or a foreign nonprofit entity.
37	37	2.9 EFFECTIVE DATE.This section is effective for premiums received after December
38	38	2.1031, 2025.
39	39	2.11 Sec. 3. Minnesota Statutes 2024, section 297I.05, subdivision 5, is amended to read:
40	40	2.12 Subd. 5.Health maintenance organizations, nonprofit health service plan
41	41	2.13corporations, and community integrated service networks Health plan companies.(a)
42	42	2.14A tax is imposed on health maintenance organizations, community integrated service
43	43	2.15networks, and nonprofit health care service plan corporations health plan companies. The
44	44	2.16rate of tax is equal to one .... percent of gross premiums less return premiums on all direct
45	45	2.17business received by the organization, network, or corporation health plan company or its
46	46	2.18agents in Minnesota, in cash or otherwise, in the calendar year.
47	47	2.19 (b) The commissioner shall deposit all revenues, including penalties and interest, collected
48	48	2.20under this chapter from health maintenance organizations, community integrated service
49	49	2.21networks, and nonprofit health service plan corporations health plan companies in the health
50	50	2.22care access fund. Refunds of overpayments of tax imposed by this subdivision must be paid
51	51	2.23from the health care access fund. There is annually appropriated from the health care access
52	52	2.24fund to the commissioner the amount necessary to make any refunds of the tax imposed
53	53	2.25under this subdivision.
54	54	2.26 EFFECTIVE DATE.This section is effective for premiums received after December
55	55	2.2731, 2025.
56	56	2.28 Sec. 4. Minnesota Statutes 2024, section 297I.20, subdivision 1, is amended to read:
57	57	2.29 Subdivision 1.Guaranty association assessment offsets.(a) An insurance company
58	58	2.30or health maintenance organization plan company may offset against its premium tax liability
59	59	2.31to this state any amount paid for assessments made for insolvencies under sections 60C.01
60	60	2.32to 60C.22; and any amount paid for assessments under sections 61B.18 to 61B.32 as follows:
61	61	2Sec. 4.
62	62	REVISOR EAP/HL 25-0207801/29/25 3.1 (1) Each such assessment shall give rise to an amount of offset equal to 20 percent of
63	63	3.2the amount of the assessment for each of the five calendar years following the year in which
64	64	3.3the assessment was paid.
65	65	3.4 (2) The amount of offset initially determined for each taxable year is the sum of the
66	66	3.5amounts determined under clause (1) for that taxable year.
67	67	3.6 (b)(1) Each year the commissioner shall compare total guaranty association assessments
68	68	3.7levied over the preceding five calendar years to the sum of all premium tax and corporate
69	69	3.8franchise tax revenues collected from insurance companies and health maintenance
70	70	3.9organizations plan companies, without reduction for any guaranty association assessment
71	71	3.10offset in the preceding calendar year, referred to in this subdivision as "preceding year
72	72	3.11insurance tax revenues."
73	73	3.12 (2) If total guaranty association assessments levied over the preceding five years exceed
74	74	3.13the preceding year insurance tax revenues, insurance companies and health maintenance
75	75	3.14organizations plan companies must be allowed only a proportionate part of the premium
76	76	3.15tax offset calculated under paragraph (a) for the current calendar year.
77	77	3.16 (3) The proportionate part of the premium tax offset allowed in the current calendar year
78	78	3.17is determined by multiplying the amount calculated under paragraph (a) by a fraction. The
79	79	3.18numerator of the fraction equals the preceding year insurance tax revenues, and its
80	80	3.19denominator equals total guaranty association assessments levied over the preceding five-year
81	81	3.20period.
82	82	3.21 (4) The proportionate part of the premium tax offset that is not allowed must be carried
83	83	3.22forward to subsequent tax years and added to the amount of premium tax offset calculated
84	84	3.23under paragraph (a) prior to application of the limitation imposed by this paragraph.
85	85	3.24 (5) Any amount carried forward from prior years must be allowed before allowance of
86	86	3.25the offset for the current year calculated under paragraph (a).
87	87	3.26 (6) The premium tax offset limitation must be calculated separately for (i) insurance
88	88	3.27companies subject to assessment under sections 60C.01 to 60C.22, and (ii) insurance
89	89	3.28companies or health maintenance organizations plan companies subject to assessment under
90	90	3.29sections 61B.18 to 61B.32.
91	91	3.30 (7) When the premium tax offset is limited by this provision, the commissioner shall
92	92	3.31notify affected insurance companies or health maintenance organizations plan companies
93	93	3.32on a timely basis for purposes of completing premium and corporate franchise tax returns.
94	94	3Sec. 4.
95	95	REVISOR EAP/HL 25-0207801/29/25 4.1 (8) The guaranty associations created under sections 60C.01 to 60C.22 and 61B.18 to
96	96	4.261B.32 shall provide the commissioner with the necessary information on guaranty
97	97	4.3association assessments.
98	98	4.4 (c)(1) If the offset determined by the application of paragraphs (a) and (b) exceeds the
99	99	4.5insurance company's or health maintenance organization's plan company's premium tax
100	100	4.6liability under this section prior to allowance of the credit for premium taxes, then the
101	101	4.7insurance company or health maintenance organization plan company may carry forward
102	102	4.8the excess, referred to in this subdivision as the "carryforward credit" to subsequent taxable
103	103	4.9years.
104	104	4.10 (2) The carryforward credit is allowed as an offset against premium tax liability for the
105	105	4.11first succeeding year to the extent that the premium tax liability for that year exceeds the
106	106	4.12amount of the allowable offset for the year determined under paragraphs (a) and (b).
107	107	4.13 (3) The carryforward credit must be reduced, but not below zero, by the amount of the
108	108	4.14carryforward credit allowed as an offset against the premium tax under this paragraph. The
109	109	4.15remainder, if any, of the carryforward credit must be carried forward to succeeding taxable
110	110	4.16years until the entire carryforward credit has been credited against the insurance company's
111	111	4.17or health maintenance organization's plan company's liability for premium tax under this
112	112	4.18chapter if applicable for that taxable year.
113	113	4.19 (d) When an insurer or health maintenance organization plan company has offset against
114	114	4.20taxes its payment of an assessment of the Minnesota Life and Health Guaranty Association,
115	115	4.21and the association pays the insurer or health maintenance organization plan company a
116	116	4.22refund with respect to the assessment under section 61B.24, subdivision 6, then the refund
117	117	4.23reduces the insurer's or health maintenance organization's plan company's carryforward
118	118	4.24credit under paragraph (c). If the refund exceeds the amount of the carryforward credit, the
119	119	4.25excess amount must be repaid to the state by the insurers or health maintenance organizations
120	120	4.26plan companies to the extent of the offset in the manner the commissioner requires.
121	121	4.27 EFFECTIVE DATE.This section is effective for premiums received after December
122	122	4.2831, 2025.
123	123	4.29 Sec. 5. REPEALER.
124	124	4.30 Minnesota Statutes 2024, section 297I.01, subdivisions 4, 10, and 11, are repealed.
125	125	4.31 EFFECTIVE DATE.This section is effective for premiums received after December
126	126	4.3231, 2025.
127	127	4Sec. 5.
128	128	REVISOR EAP/HL 25-0207801/29/25 297I.01 DEFINITIONS.
129	129	Subd. 4.Community integrated service network."Community integrated service network"
130	130	has the meaning given in section 62N.02, subdivision 4a.
131	131	Subd. 10.Health maintenance organization."Health maintenance organization" has the
132	132	meaning given in section 62D.02, subdivision 4.
133	133	Subd. 11.Nonprofit health service plan corporation."Nonprofit health service plan
134	134	corporation" has the meaning given in section 62C.02, subdivision 6.
135	135	1R
136	136	APPENDIX
137	137	Repealed Minnesota Statutes: 25-02078