In 2011 Minnesota Republicans and Democrat Governor Mark Dayton repealed a provider tax that collected up to 2% of gross revenue from thousands of healthcare providers. Both large and small size healthcare providers are included. The tax is often called the “sick tax” since it directly raises the cost of healthcare for people who are sick
However, with the push to expand government by the new Democrat house majority, there will be a push to bring additional revenue. KSTP reports that new Democrat Governor Tim Walz is in support of the sick tax.
Chiropractor and Republican Senator Jim Abeler will chair the Health and Human Services Committee. Abeler tells KSTP that he is critical of the tax because it’s a 2-percent direct hit on patients of smaller providers like him — as well as of dentists, psychologists, counselors, and opticians.
Currently, over 1,000,000 Minnesota residents are already on government-sponsored insurance even before any expansion of programs like Medical Assistance or Minnesota Care.