ST. PAUL, MN — Minnesota House Republicans held a press conference Tuesday urging the new DFL House Majority and Governor Walz not to raise health care costs on Minnesotans by restoring the sick tax—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. The tax, which was eliminated as part of bipartisan legislation passed by a Republican-controlled legislature and signed into law by Governor Dayton in 2011, is set to expire starting January 1, 2020. In total, restoring the tax would 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 HHS Finance Chair Tina Liebling said it was "essential" to restore the tax or replace its revenue.
“The sick tax is one of the most regressive taxes in the state,” said Representative Dan Fabian (R-Roseau). “With a $1.5 billion surplus, we have an opportunity to provide meaningful relief for Minnesotans already struggling with expensive health care costs. Restoring this tax is not going to make health care less expensive; we need to find a new approach that will work for all Minnesotans.”
Last year, numbers from the Minnesota Department of Human Services (DHS) Budget Director indicated that Minnesota is losing tens of millions of dollars per month by failing to implement periodic data matching (PDM), which helps verify program eligibility for Minnesota public programs. DHS has acknowledged that fraud within the childcare assistance program is a "big problem," costing the state tens of millions of dollars, and the non-partisan legislative auditor has released multiple reports detailing hundreds of millions in public program benefits going to recipients who are not eligible.
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