HF 3220 Summary

• Repeals the gross revenues tax (1.8 percent) on hospitals, surgical centers, health care providers, and wholesale drug distributors effective for gross revenues received after December 31, 2023.

• Removes references to the MinnesotaCare provider tax from health plan company definitions and exemptions for calculating net expenditures under section 62J.041.

• Increases medical assistance and MinnesotaCare pharmacy reimbursement by 1.8 percent for prescription and nonprescription drugs to offset the tax repeal.

• Eliminates disciplinary grounds related to failure to pay the health care provider tax and removes provisions allowing tax expense transfers to third-party purchasers.

• Repeals multiple statutes (sections 295.50-295.59, 295.581-295.582) that contained tax definitions, rates, payment procedures, exemptions, and enforcement mechanisms related to the gross revenues tax.