SF2352

Purpose

The purpose of this bill is to modify the taxation system for health insurers in Minnesota, particularly focusing on the taxation of health insurance premiums.

Main Provisions

• Direct Business Definition: The bill refines what constitutes "direct business" in terms of insurance. It includes all insurance provided by a company or its agents, specifically mentioning stoploss insurance related to self-insurance for employee health benefits. However, it excludes reinsurance (where one insurance company bears the liability of another) and self-insurance.
• Entities Included: It identifies entities like nonprofit health service corporations, health maintenance organizations (HMOs), and community integrated service network health plan companies as part of the insurance company definition for taxation purposes.

Significant Changes to Existing Law

• The bill proposes amendments to certain sections of the Minnesota Statutes, impacting how insurance premium taxes are applied.
• It seeks to repeal some subdivisions that previously defined aspects of the insurance premium tax law, suggesting a restructuring or simplification of current regulations.

Relevant Terms

• Insurance premium tax
• Health insurers
• Direct business
• Stoploss insurance
• Self-insurance
• Nonprofit health service corporation
• Health maintenance organization (HMO)
• Community integrated service network