ST. PAUL – State Representative Jason Rarick (R-Pine City) is urging Governor Walz and the new DFL House Majority to avoid raising health care costs on Minnesotans this year by restoring the sick tax.
The tax – also known as the provider tax – is a 2 percent tax levied on most patient services in Minnesota, including things like baby deliveries, chemotherapy treatments, routine doctor visits, emergency room visits, and more.
“It can’t be argued that by reinstating this expiring tax, the Democrats would increase the cost of health care in Minnesota,” Rarick said. “This tax is not only unpopular but unfairly hits those who are just trying to get healthy.”
According to state law, the sick tax will expire less than a year from now, but top Democratic leaders have signaled they want to reinstate it. Doing so will result in a more than $600 million increase on health care costs for Minnesotans next year alone.
Over the past week, Governor Walz called it a "nonstarter" to end the tax, and DFL House Health and Human Services Finance Chair Tina Liebling said it was "essential" to restore the tax or replace its revenue.
“Here’s another example of a tax that was supposed to be temporary, yet even in a time of surplus the Democrats will not let it sunset,” Rarick said. “We need to be finding ways to reduce health care costs, not increase them,” Rarick concluded.