[ST. PAUL, MN] – On Tuesday, April 30, Governor Tim Walz led state and local leaders in a roundtable discussion at Lake Region Healthcare in Fergus Falls about Minnesota’s provider tax, a 27-year old tax with decades of bipartisan support. The provider tax, which has existed since 1992, is set to expire at the end of the year unless the Legislature acts.

Minnesota’s 2% provider tax provides a critical funding stream for the state’s health care access fund, which was created to increase access to care, contain health care costs, and improve the quality of services for Minnesotans. The Senate Budget ends the provider tax, putting the health care of 1.2 million Minnesotans and the financial stability of our health care system at risk. In his proposed budget, Governor Walz calls for continuation of the health care access fund, which will become insolvent in 2022 without legislative action.

The roundtable included Department of Human Services Commissioner Tony Lourey, Fergus Falls Mayor Ben Schierer, Lake Region CEO Kyle Richards, representatives from the Minnesota Hospital Association, and health care providers from Lake Region Healthcare, all speaking in support of continuing the provider tax.

“It is critical that we protect the health and well-being of Minnesota families who rely on the health care access fund to get the care they need,” Governor Walz said. “For decades, the provider tax has been a reliable, bipartisan revenue stream that ensures health care remains accessible and affordable for 1.2 million Minnesotans. This is about real people who will face real consequences if we allow the provider tax to sunset.”

“Ending the provider tax will impact care for millions of Minnesotans and jeopardize the financial security of our health care sector, as these funding losses would force the elimination or reduction of care for sick people or payments to health care providers,” Commissioner Lourey said. “Protecting the health care access fund means protecting our investment in the health of our people, our families, and our communities.”

“As health care providers, we want to ensure that our patients are getting the right care in the right place at the right time,” Lake Region Healthcare Pediatrician Dr. Angela Folstad said. “If the provider tax ends, low-income Minnesotans will lose coverage entirely, or end up with insurance that doesn’t cover the services they need or that they can’t afford to use. More people will rely almost exclusively on hospitals’ emergency rooms for their care, driving up the total costs of care statewide for everyone.”

“Minnesota’s hospitals and health systems have long advocated for preserving health care coverage for low-income Minnesotans,” Kyle Richards, Lake Region Healthcare CEO said. “The provider tax is a known, reliable, predictable and sustainable way to finance MinnesotaCare and Medical Assistance, which provide health care coverage for 1.2 million people with low incomes across Minnesota and nearly 17,000 people in our immediate service area. Hospitals and health systems are willing to pay this tax because we are dedicated to putting our patients and the communities we serve first.”