HF87 (Legislative Session 94 (2025-2026))
Ambulance provider assessment program established, supplemental medical assistance payments provided for ambulance services, certain ambulance services exempted from the MinnesotaCare provider tax, report required, and money appropriated.
Related bill: SF3011
AI Generated Summary
This Minnesota bill is designed to create a new program that imposes an assessment fee on ambulance providers, which excludes public and air ambulance services. Revenue from this fee will fund a special account aimed at supplementing the amount ambulance providers receive from medical assistance payments, raising their compensation closer to the average rates paid by commercial insurance. The intent is to ensure that ambulance services receive fair compensation for their services without exceeding specific federal limits.
The fee will be collected quarterly based on the gross revenue of each ambulance provider and managed by the state's Department of Human Services. The program includes a provision where the collected fees, along with any federal matching funds and interest, are transferred into a dedicated fund. Money from this fund will then be used exclusively to enhance payments to ambulance providers through a systematic quarterly distribution.
The implementation and continuation of this program depend on approval and continued acceptance from federal Medicaid oversight bodies. If federal approval is not granted or is withdrawn, any remaining funds will be returned to the ambulance providers. The bill mandates annual reporting to legislative bodies on the financial status and impacts of this fund, starting from January 2027.
Additionally, certain ambulance services are to be exempt from the existing MinnesotaCare provider tax, aiming to alleviate financial burdens on these providers. The commissioner of human services is also given authority to make necessary rule changes to effectively implement and manage this new program.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 09, 2025 | House | Floor | Action | Introduction and first reading, referred to | Health Finance and Policy |
Citations
[
{
"analysis": {
"added": [
"Includes ambulance providers in the definition regarding healthcare provider tax exemptions."
],
"removed": [],
"summary": "This bill references modifications to the definitions related to healthcare provider taxes under Minnesota Statutes section 295.50, subdivision 4.",
"modified": [
"Potential adjustment in the scope of taxable entities under subdivision 4 with specific exemptions noted for ambulance services."
]
},
"citation": "295.50 subdivision 4"
},
{
"analysis": {
"added": [
"Clarifies the inclusion of emergency ambulance services under gross revenues."
],
"removed": [],
"summary": "References the definition of 'Gross revenues' in the context of ambulance provider assessment.",
"modified": [
"Directs application of the gross revenue definition to ambulance services for assessment calculation purposes."
]
},
"citation": "295.50 subdivision 3"
},
{
"analysis": {
"added": [
"A new subdivision possibly defining exemptions for certain ambulance services from provider tax."
],
"removed": [],
"summary": "Amendments are made to Minnesota Statutes section 295.52 by adding new subdivisions related to taxation.",
"modified": []
},
"citation": "295.52"
},
{
"analysis": {
"added": [
"Aligns ambulance service assessment fee implementation with federally defined health care-related tax criteria."
],
"removed": [],
"summary": "References federal code regarding health care-related tax and state share qualification.",
"modified": []
},
"citation": "42 U.S.C. 1396b(w)(3)(A)"
},
{
"analysis": {
"added": [
"Sets a cap on the assessment fees for ambulance providers."
],
"removed": [],
"summary": "Cites federal regulation limiting maximum allowable state-imposed assessment.",
"modified": []
},
"citation": "42 C.F.R. 433.68(f)(3)(i)(A)"
},
{
"analysis": {
"added": [
"Specifies conditions for supplemental payments to ambulance providers to ensure compliance with federal participation."
],
"removed": [],
"summary": "References federal requirements for state health provider payments under Medicaid.",
"modified": [
"Ensures spending from the ambulance fee fund aligns with federal financial participation requirements."
]
},
"citation": "42 U.S.C. 1396b(w)"
}
]