Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF3011 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 human services; establishing an ambulance provider assessment program;
3	3	1.3 providing supplemental medical assistance payments for ambulance services;
4	4	1.4 exempting certain ambulance services from the MinnesotaCare provider tax;
5	5	1.5 requiring report; appropriating money; amending Minnesota Statutes 2024, sections
6	6	1.6 295.50, subdivision 4; 295.52, by adding a subdivision; proposing coding for new
7	7	1.7 law in Minnesota Statutes, chapter 256B; repealing Minnesota Statutes 2024,
8	8	1.8 section 295.52, subdivision 5.
9	9	1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
10	10	1.10 Section 1. [256B.1951] AMBULANCE ASSESSMENT AND PAYMENT PROGRAM.
11	11	1.11 Subdivision 1.Definitions.(a) For purposes of this section, the following definitions
12	12	1.12apply.
13	13	1.13 (b) "Ambulance provider" means an ambulance service licensed under chapter 144E,
14	14	1.14with the exception of:
15	15	1.15 (1) ambulance services operated by a public or governmental entity, including but not
16	16	1.16limited to a municipal fire department or police department; and
17	17	1.17 (2) ambulance services that exclusively provide air ambulance services.
18	18	1.18 (c) "Emergency ambulance services" means any services delivered by an ambulance
19	19	1.19provider other than air ambulance services.
20	20	1.20 (d) "Fee" means the ambulance service assessment fee authorized by this section.
21	21	1.21 (e) "Gross revenues" has the meaning provided in section 295.50, subdivision 3.
22	22	1.22 Subd. 2.Ambulance provider assessment fee.(a) The commissioner, on a quarterly
23	23	1.23basis, shall charge every ambulance provider an ambulance service assessment fee. The
24	24	1Section 1.
25	25	25-00868 as introduced12/13/24 REVISOR AGW/VJ
26	26	SENATE
27	27	STATE OF MINNESOTA
28	28	S.F. No. 3011NINETY-FOURTH SESSION
29	29	(SENATE AUTHORS: SEEBERGER)
30	30	OFFICIAL STATUSD-PGDATE
31	31	Introduction and first reading03/27/2025
32	32	Referred to Health and Human Services 2.1commissioner shall implement the fee as a health care related tax as defined under United
33	33	2.2States Code, title 42, section 1396b(w)(3)(A), and the commissioner shall collect the fee
34	34	2.3only to the extent and for the periods that the commissioner determines that revenues
35	35	2.4generated by the fee qualify as the state share of medical assistance expenditures eligible
36	36	2.5for federal financial participation. The commissioner shall assess the fee on each ambulance
37	37	2.6provider's gross revenues at a rate determined annually by the commissioner. The
38	38	2.7commissioner shall calculate the rate such that the assessment generates the state share
39	39	2.8necessary to fund the expenditures described in subdivision 4, provided that the fee must
40	40	2.9not exceed the maximum percentage specified under Code of Federal Regulations, title 42,
41	41	2.10section 433.68(f)(3)(i)(A). The commissioner shall establish each provider's fee amount
42	42	2.11using the best data available, as determined by the commissioner in consultation with the
43	43	2.12Minnesota Ambulance Association, and shall update each ambulance provider's fee at least
44	44	2.13annually.
45	45	2.14 (b) All gross revenues received for emergency ambulance services, regardless of payer,
46	46	2.15are subject to the fee, including but not limited to gross revenues received for emergency
47	47	2.16ambulance services from commercial insurance and public health care programs under
48	48	2.17fee-for-service and managed care arrangements. In the case of a transfer of ownership, an
49	49	2.18ambulance provider's liability for the fee must be assumed by the successor in interest to
50	50	2.19the ambulance provider.
51	51	2.20 (c) The commissioner of human services shall consult with the commissioner of revenue
52	52	2.21when administering this subdivision.
53	53	2.22 Subd. 3.Ambulance fee fund.(a) The ambulance fee fund is established in the state
54	54	2.23treasury. The commissioner of management and budget shall deposit the following revenues
55	55	2.24into the fund:
56	56	2.25 (1) all revenues generated from the fee collected under subdivision 2;
57	57	2.26 (2) an amount equal to any federal financial participation revenues received by the state
58	58	2.27for eligible expenditures made from the fund;
59	59	2.28 (3) any other appropriations to the fund authorized by law; and
60	60	2.29 (4) interest earned on any money in the fund.
61	61	2.30 (b) Money in the fund is annually appropriated to the commissioner of human services
62	62	2.31for the purposes specified in subdivision 4.
63	63	2.32 Subd. 4.Expenditures from the ambulance fee fund.(a) The commissioner shall use
64	64	2.33money in the ambulance fee fund only to provide supplemental payments to ambulance
65	65	2Section 1.
66	66	25-00868 as introduced12/13/24 REVISOR AGW/VJ 3.1providers, in order to increase medical assistance payments to ambulance providers to a
67	67	3.2level that does not exceed the average commercial insurance rate. The commissioner may
68	68	3.3expend money in the fund for this purpose without further legislative authorization. The
69	69	3.4commissioner shall not use money in the fund to supplant or replace existing general fund
70	70	3.5appropriations and payment commitments.
71	71	3.6 (b) The commissioner shall make expenditures from the fund in a manner consistent
72	72	3.7with the requirements and conditions of federal financial participation under United States
73	73	3.8Code, title 42, section 1396b(w), and Code of Federal Regulations, title 42, section 433.68,
74	74	3.9and consistent with federal payment requirements and payment limits as determined by the
75	75	3.10secretary of the United States Department of Health and Human Services. The commissioner
76	76	3.11shall expend money in the fund in a manner that maximizes federal financial participation.
77	77	3.12 (c) The commissioner shall make supplemental payments to ambulance providers on a
78	78	3.13quarterly basis. The commissioner shall consult with the Minnesota Ambulance Association
79	79	3.14in the development and implementation of the payments.
80	80	3.15 (d) Beginning January 1, 2027, and each January 1 thereafter, the commissioner shall
81	81	3.16report annually to the chairs and ranking minority members of the legislative committees
82	82	3.17with jurisdiction over health care spending and policy on expenditures from the ambulance
83	83	3.18fee fund.
84	84	3.19 Subd. 5.Rulemaking.The commissioner of human services may adopt rules necessary
85	85	3.20to accomplish the purposes of this section.
86	86	3.21 Subd. 6.Federal approval required.(a) The implementation of subdivisions 1 to 5 is
87	87	3.22contingent on federal approval. If the Centers for Medicare and Medicaid Services does not
88	88	3.23approve of, or withdraws approval of, the payments made to ambulance providers under
89	89	3.24this section, all money remaining in the fund must be returned to ambulance providers. If
90	90	3.25the commissioner no longer collects the fee, the commissioner shall return all money
91	91	3.26remaining in the fund to ambulance providers.
92	92	3.27 (b) The commissioner shall submit to the Centers for Medicare and Medicaid Services
93	93	3.28all Medicaid state plan amendments, waiver requests, and other documents required to
94	94	3.29implement this section.
95	95	3.30 EFFECTIVE DATE.Subdivisions 1 to 5 are effective January 1, 2026, or upon federal
96	96	3.31approval, whichever is later. The commissioner of human services shall notify the revisor
97	97	3.32of statutes when federal approval is obtained. Subdivision 6 is effective the day following
98	98	3.33final enactment.
99	99	3Section 1.
100	100	25-00868 as introduced12/13/24 REVISOR AGW/VJ 4.1 Sec. 2. Minnesota Statutes 2024, section 295.50, subdivision 4, is amended to read:
101	101	4.2 Subd. 4.Health care provider.(a) "Health care provider" means:
102	102	4.3 (1) a person whose health care occupation is regulated or required to be regulated by
103	103	4.4the state of Minnesota furnishing any or all of the following goods or services directly to a
104	104	4.5patient or consumer: medical, surgical, optical, visual, dental, hearing, nursing services,
105	105	4.6drugs, laboratory, diagnostic or therapeutic services;
106	106	4.7 (2) a person who provides goods and services not listed in clause (1) that qualify for
107	107	4.8reimbursement under the medical assistance program provided under chapter 256B;
108	108	4.9 (3) a staff model health plan company;
109	109	4.10 (4) an ambulance service required to be licensed operated by a hospital;
110	110	4.11 (5) a person who sells or repairs hearing aids and related equipment or prescription
111	111	4.12eyewear; or
112	112	4.13 (6) a person providing patient services, who does not otherwise meet the definition of
113	113	4.14health care provider and is not specifically excluded in clause (b), who employs or contracts
114	114	4.15with a health care provider as defined in clauses (1) to (5) to perform, supervise, otherwise
115	115	4.16oversee, or consult with regarding patient services.
116	116	4.17 (b) Health care provider does not include:
117	117	4.18 (1) hospitals; medical supplies distributors, except as specified under paragraph (a),
118	118	4.19clause (5); nursing homes licensed under chapter 144A or licensed in any other jurisdiction;
119	119	4.20wholesale drug distributors; pharmacies; surgical centers; bus and taxicab transportation,
120	120	4.21or any other providers of transportation services other than ambulance services required to
121	121	4.22be licensed operated by a hospital; supervised living facilities for persons with developmental
122	122	4.23disabilities, licensed under Minnesota Rules, parts 4665.0100 to 4665.9900; housing with
123	123	4.24services establishments required to be registered under chapter 144D; board and lodging
124	124	4.25establishments providing only custodial services that are licensed under chapter 157 and
125	125	4.26registered under section 157.17 to provide supportive services or health supervision services;
126	126	4.27adult foster homes as defined in Minnesota Rules, part 9555.5105; day training and
127	127	4.28habilitation services for adults with developmental disabilities as defined in section 252.41,
128	128	4.29subdivision 3; boarding care homes, as defined in Minnesota Rules, part 4655.0100; and
129	129	4.30adult day care centers as defined in Minnesota Rules, part 9555.9600;
130	130	4.31 (2) home health agencies as defined in Minnesota Rules, part 9505.0175, subpart 15; a
131	131	4.32person providing personal care services and supervision of personal care services as defined
132	132	4.33in Minnesota Rules, part 9505.0335; a person providing home care nursing services as
133	133	4Sec. 2.
134	134	25-00868 as introduced12/13/24 REVISOR AGW/VJ 5.1defined in Minnesota Rules, part 9505.0360; and home care providers required to be licensed
135	135	5.2under chapter 144A for home care services provided under chapter 144A;
136	136	5.3 (3) a person who employs health care providers solely for the purpose of providing
137	137	5.4patient services to its employees;
138	138	5.5 (4) an educational institution that employs health care providers solely for the purpose
139	139	5.6of providing patient services to its students if the institution does not receive fee for service
140	140	5.7payments or payments for extended coverage; and
141	141	5.8 (5) a person who receives all payments for patient services from health care providers,
142	142	5.9surgical centers, or hospitals for goods and services that are taxable to the paying health
143	143	5.10care providers, surgical centers, or hospitals, as provided under section 295.53, subdivision
144	144	5.111, paragraph (b), clause (3) or (4), or from a source of funds that is excluded or exempt from
145	145	5.12tax under sections 295.50 to 295.59.
146	146	5.13 EFFECTIVE DATE.This section is effective for gross revenues received on or after
147	147	5.14January 1, 2026.
148	148	5.15 Sec. 3. Minnesota Statutes 2024, section 295.52, is amended by adding a subdivision to
149	149	5.16read:
150	150	5.17 Subd. 5a.Ambulance services operated by a hospital.An ambulance service operated
151	151	5.18by a hospital must pay the tax under this section directly to the commissioner as provided
152	152	5.19under section 295.55. Gross revenues from an ambulance service operated by a hospital
153	153	5.20must not be included in hospital gross revenues for purposes of payment of the tax.
154	154	5.21 EFFECTIVE DATE.This section is effective for gross revenues received on or after
155	155	5.22January 1, 2026.
156	156	5.23 Sec. 4. REPEALER.
157	157	5.24 Minnesota Statutes 2024, section 295.52, subdivision 5, is repealed.
158	158	5.25 EFFECTIVE DATE.This section is effective for gross revenues received on or after
159	159	5.26January 1, 2026.
160	160	5Sec. 4.
161	161	25-00868 as introduced12/13/24 REVISOR AGW/VJ 295.52 TAXES IMPOSED.
162	162	Subd. 5.Volunteer ambulance services.Volunteer ambulance services are not subject to the
163	163	tax under this section. For purposes of this requirement, "volunteer ambulance service" means an
164	164	ambulance service in which all of the individuals whose primary responsibility is direct patient care
165	165	meet the definition of volunteer under section 144E.001, subdivision 15. The ambulance service
166	166	may employ administrative and support staff, and remain eligible for this exemption, if the primary
167	167	responsibility of these staff is not direct patient care.
168	168	1R
169	169	APPENDIX
170	170	Repealed Minnesota Statutes: 25-00868