Minnesota Senate Bill SF3011

Minnesota 2025-2026 Regular Session

• Introduced: 3/27/25
• Refer: 3/27/25

Caption

Ambulance provider assessment program establishment

Summary

SF3011 establishes a new ambulance provider assessment and supplemental payment program within Minnesota’s human services framework. The bill directs the commissioner of human services to impose a quarterly assessment on ambulance providers’ gross revenues from emergency ambulance services, treat the assessment as a federal Medicaid-related health care tax, and deposit the proceeds into a newly created ambulance fee fund. Money in that fund would be annually appropriated to the commissioner and used only to make supplemental payments to ambulance providers, with the stated goal of increasing Medical Assistance reimbursement up to, but not above, the average commercial insurance rate. The bill is structured to maximize federal financial participation and is contingent on federal approval from the Centers for Medicare and Medicaid Services. It requires the commissioner to consult with the Minnesota Ambulance Association and the commissioner of revenue, allows rulemaking, and requires annual reporting to legislative committees beginning in 2027. If federal approval is denied or later withdrawn, remaining fund balances must be returned to ambulance providers. The effective date for most provisions is January 1, 2026, or upon federal approval, whichever is later.

Impact

The bill would add a new section to chapter 256B creating a dedicated ambulance assessment and payment mechanism, while also amending Minnesota’s provider tax statutes in chapter 295. It expands the definition of health care provider for provider tax purposes to include certain hospital-operated ambulance services, requires those services to pay the tax directly, and prevents their revenues from being counted as hospital gross revenues for tax calculation. It also repeals the existing exemption for volunteer ambulance services, meaning those services would no longer be excluded from the tax under current law. Overall, the bill would shift ambulance reimbursement policy toward a Medicaid financing model tied to provider assessments and federal matching funds.

Sentiment

Based on the bill text and the absence of recorded committee testimony or votes, the overall posture appears policy-driven and supportive of ambulance service financing rather than overtly controversial in the available record. The bill is designed to bring in federal matching dollars and improve reimbursement for ambulance providers, which suggests a generally favorable intent toward the industry. The inclusion of consultation with the Minnesota Ambulance Association also indicates stakeholder engagement and likely support from ambulance providers. However, the lack of discussion transcripts or vote history means there is no documented public sentiment in the provided materials beyond the bill’s structure and purpose.

Contention

The main points of contention likely involve who bears the assessment burden and which ambulance services remain exempt. The bill would require all non-governmental, non-air ambulance providers to pay the assessment on emergency ambulance revenues, including revenues from commercial insurance and public programs, which could be viewed as a new cost on providers. The repeal of the volunteer ambulance exemption is especially notable and could draw opposition from volunteer-based services or rural communities that rely on them. There may also be concern about the federal approval contingency, the administrative complexity of implementing a health care-related tax, and whether the supplemental payments will fairly offset the new assessment. Hospital-operated ambulance services are treated separately in the provider tax amendments, which could also raise questions about tax treatment and equity among provider types.