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Minnesota Legislature

Legislative News and Views - Rep. Greg Davids (R)

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Thursday, January 17, 2019

ST. PAUL – State Representative Greg Davids (R-Preston) 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 two percent tax levied on most patient services in Minnesota, including things like baby deliveries, chemotherapy treatments, routine doctor visits, emergency room visits, and more.


“Democrats promised to lower health care costs if they were handed control of the Minnesota House, yet they are already pledging to increase those costs by $600 million,” Davids said.


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.


“It is a massive, massive tax increase on the sick,” Davids said. “In my opinion it’s an immoral tax and I’ll fight every step of the way to make sure that does not become law.”