Purpose of the Bill

This bill intends to modify the taxation rules for health insurers in Minnesota. The primary goal is to adjust how certain insurance products, particularly those related to health coverage, are taxed under state law.

Main Provisions

• Amendment of Definitions: The bill updates the definition of "direct business" in insurance, which involves all insurance transactions by a company, including stop-loss insurance linked to self-insurance plans. This change clarifies which types of insurance are included or excluded from certain tax obligations.
• Inclusion of Organizations: It specifies that nonprofit health service corporations, health maintenance organizations, and community integrated service networks are considered insurance companies for taxation purposes.
• Repeal of Certain Provisions: The bill proposes to repeal specific existing provisions under Minnesota Statutes 2024. These include subdivisions that may pertain to previous definitions, exemptions, or taxation methods for insurers.

Significant Changes

• The bill makes significant adjustments to how "direct business" is understood, affecting how certain insurance, particularly stop-loss insurance, is taxed.
• It expands the range of entities regarded as insurers for tax purposes, potentially broadening the tax base to include organizations providing health services.
• By repealing certain subdivisions, the bill removes outdated or redundant parts of the law, streamlining the current statutory framework related to insurance taxation.

Relevant Terms

insurance premium tax, health insurers, direct business, nonprofit health service corporation, health maintenance organization, community integrated service network, stop-loss insurance, self-insurance, repeal.