SF1572 creates a new 2 percent “claims expenditure assessment” on paid health care claims handled by health plan companies and third-party administrators. The bill defines the types of entities and payments covered, including health plan companies, third-party administrators, pharmacy benefit managers, self-insured plans, and certain stop-loss insurers, and it specifies which claims are included or excluded from the assessment. Exemptions include claims paid for nonresidents, federal employee health benefits, Medicare and related federal programs, TRICARE, VA coverage, certain reimbursement accounts, and patient cost-sharing amounts.
The assessment is collected quarterly by the commissioner of revenue, with filing and payment deadlines on April 30, July 30, October 30, and January 30. The bill allows the assessment to be passed through to individuals, employers, or group health plan sponsors, but only in a uniform manner and only for the amount of the assessment itself. It also requires recordkeeping, authorizes the commissioner to estimate assessments if returns are incomplete or inaccurate, and provides for notice to the commissioners of commerce and health if an entity fails to pay, which can lead to suspension or revocation of authority or licensure.
The bill directs all assessment revenue and interest into the health care access fund. Those funds are to be appropriated only for administration of MinnesotaCare and medical assistance, implementation of the new assessment, and existing ongoing appropriations. The effective date is July 1, 2025, and the measure would add a new section to Minnesota Statutes chapter 295.
Overall, the bill appears aimed at raising dedicated revenue for state health care programs, especially MinnesotaCare and Medical Assistance, by taxing claims paid in the private and self-insured health coverage market. Because there are no committee transcripts or recorded votes provided, there is no documented debate or formal sentiment history in the supplied materials. Based on the bill text alone, the measure is structured as a revenue-raising and administrative compliance bill rather than a benefit-expansion bill, and it would likely affect insurers, third-party administrators, self-insured employers, and pharmacy benefit managers most directly.
The bill would add a new statutory assessment in Minnesota Statutes chapter 295, imposing a 2 percent charge on covered paid claims and creating new reporting, payment, and enforcement obligations for health plan companies, third-party administrators, and certain stop-loss insurers. It would also affect the health care access fund by dedicating new revenue to MinnesotaCare and Medical Assistance administration and related implementation costs, while excluding many federal and out-of-state claims from the base.
No committee discussion or vote record was provided, so there is no direct evidence of support or opposition from hearings or floor action. From the bill text, the measure is framed as a targeted financing mechanism for public health coverage programs, which suggests a policy rationale focused on funding stability rather than program expansion. Any sentiment assessment is therefore limited to the bill’s structure and purpose rather than recorded legislative debate.
The main likely points of contention are the new 2 percent assessment itself, whether it will be passed through to employers and consumers, and the breadth of entities subject to the tax, including self-insured plans, third-party administrators, pharmacy benefit managers, and stop-loss insurers. Another possible issue is the exclusion of certain claims and the administrative burden of quarterly filings, recordkeeping, and reconciliation, as well as the commissioner’s authority to estimate assessments and trigger licensing consequences for nonpayment.