HF 1381 Summary

• Repeals the gross revenues tax (MinnesotaCare tax) on hospitals, surgical centers, health care providers, and wholesale drug distributors effective for gross revenues received after December 31, 2023.

• Removes the 1.8 percent tax rate that previously applied to patient services revenues and wholesale drug distributions, along with associated exemptions and credits.

• Modifies medical assistance and MinnesotaCare payment rates by eliminating the requirement to increase payments based on the repealed tax rates, effective after December 31, 2023.

• Increases ingredient cost reimbursement for prescription and nonprescription drugs by 1.8 percent to offset the removal of the wholesale drug distributor tax.

• Makes technical amendments to remove references to the repealed tax throughout Minnesota Statutes sections 16A.724, 62J.041, 214.16, 256B.04, 256B.0625, 270B.14, and 289A.38.