SF 1910

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; providing that payments for 
  1.3             certain examinations are exempt from the tax on health 
  1.4             care providers; amending Minnesota Statutes 1998, 
  1.5             sections 295.50, subdivision 4; and 295.53, 
  1.6             subdivision 1. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 295.50, 
  1.9   subdivision 4, is amended to read: 
  1.10     Subd. 4.  [HEALTH CARE PROVIDER.] (a) "Health care 
  1.11  provider" means: 
  1.12     (1) a person whose health care occupation is regulated or 
  1.13  required to be regulated by the state of Minnesota furnishing 
  1.14  any or all of the following goods or services directly to a 
  1.15  patient or consumer:  medical, surgical, optical, visual, 
  1.16  dental, hearing, nursing services, drugs, laboratory, diagnostic 
  1.17  or therapeutic services; 
  1.18     (2) a person who provides goods and services not listed in 
  1.19  clause (1) that qualify for reimbursement under the medical 
  1.20  assistance program provided under chapter 256B; 
  1.21     (3) a staff model health plan company; 
  1.22     (4) an ambulance service required to be licensed; or 
  1.23     (5) a person who sells or repairs hearing aids and related 
  1.24  equipment or prescription eyewear. 
  1.25     (b) Health care provider does not include hospitals; 
  1.26  medical supplies distributors, except as specified under 
  2.1   paragraph (a), clause (5); nursing homes licensed under chapter 
  2.2   144A or licensed in any other jurisdiction; pharmacies; surgical 
  2.3   centers; bus and taxicab transportation, or any other providers 
  2.4   of transportation services other than ambulance services 
  2.5   required to be licensed; supervised living facilities for 
  2.6   persons with mental retardation or related conditions, licensed 
  2.7   under Minnesota Rules, parts 4665.0100 to 4665.9900; residential 
  2.8   care homes licensed under chapter 144B; board and lodging 
  2.9   establishments providing only custodial services that are 
  2.10  licensed under chapter 157 and registered under section 157.17 
  2.11  to provide supportive services or health supervision services; 
  2.12  adult foster homes as defined in Minnesota Rules, part 
  2.13  9555.5105; day training and habilitation services for adults 
  2.14  with mental retardation and related conditions as defined in 
  2.15  section 252.41, subdivision 3; and boarding care homes, as 
  2.16  defined in Minnesota Rules, part 4655.0100. 
  2.17     (c) For purposes of this subdivision, "directly to a 
  2.18  patient or consumer" includes goods and services provided in 
  2.19  connection with independent medical examinations under section 
  2.20  65B.56 or other examinations for purposes of litigation or 
  2.21  insurance claims. 
  2.22     Sec. 2.  Minnesota Statutes 1998, section 295.53, 
  2.23  subdivision 1, is amended to read: 
  2.24     Subdivision 1.  [EXEMPTIONS.] (a) The following payments 
  2.25  are excluded from the gross revenues subject to the hospital, 
  2.26  surgical center, or health care provider taxes under sections 
  2.27  295.50 to 295.57: 
  2.28     (1) payments received for services provided under the 
  2.29  Medicare program, including payments received from the 
  2.30  government, and organizations governed by sections 1833 and 1876 
  2.31  of title XVIII of the federal Social Security Act, United States 
  2.32  Code, title 42, section 1395, and enrollee deductibles, 
  2.33  coinsurance, and copayments, whether paid by the Medicare 
  2.34  enrollee or by a Medicare supplemental coverage as defined in 
  2.35  section 62A.011, subdivision 3, clause (10).  Payments for 
  2.36  services not covered by Medicare are taxable; 
  3.1      (2) medical assistance payments including payments received 
  3.2   directly from the government or from a prepaid plan; 
  3.3      (3) payments received for home health care services; 
  3.4      (4) payments received from hospitals or surgical centers 
  3.5   for goods and services on which liability for tax is imposed 
  3.6   under section 295.52 or the source of funds for the payment is 
  3.7   exempt under clause (1), (2), (7), (8), or (10); 
  3.8      (5) payments received from health care providers for goods 
  3.9   and services on which liability for tax is imposed under this 
  3.10  chapter or the source of funds for the payment is exempt under 
  3.11  clause (1), (2), (7), (8), or (10); 
  3.12     (6) amounts paid for legend drugs, other than nutritional 
  3.13  products, to a wholesale drug distributor who is subject to tax 
  3.14  under section 295.52, subdivision 3, reduced by reimbursements 
  3.15  received for legend drugs under clauses (1), (2), (7), and (8); 
  3.16     (7) payments received under the general assistance medical 
  3.17  care program including payments received directly from the 
  3.18  government or from a prepaid plan; 
  3.19     (8) payments received for providing services under the 
  3.20  MinnesotaCare program including payments received directly from 
  3.21  the government or from a prepaid plan and enrollee deductibles, 
  3.22  coinsurance, and copayments.  For purposes of this clause, 
  3.23  coinsurance means the portion of payment that the enrollee is 
  3.24  required to pay for the covered service; 
  3.25     (9) payments received by a health care provider or the 
  3.26  wholly owned subsidiary of a health care provider for care 
  3.27  provided outside Minnesota to a patient who is not domiciled in 
  3.28  Minnesota; 
  3.29     (10) payments received from the chemical dependency fund 
  3.30  under chapter 254B; 
  3.31     (11) payments received in the nature of charitable 
  3.32  donations that are not designated for providing patient services 
  3.33  to a specific individual or group; 
  3.34     (12) payments received for providing patient services 
  3.35  incurred through a formal program of health care research 
  3.36  conducted in conformity with federal regulations governing 
  4.1   research on human subjects.  Payments received from patients or 
  4.2   from other persons paying on behalf of the patients are subject 
  4.3   to tax; 
  4.4      (13) payments received from any governmental agency for 
  4.5   services benefiting the public, not including payments made by 
  4.6   the government in its capacity as an employer or insurer; 
  4.7      (14) payments received for services provided by community 
  4.8   residential mental health facilities licensed under Minnesota 
  4.9   Rules, parts 9520.0500 to 9520.0690, community support programs 
  4.10  and family community support programs approved under Minnesota 
  4.11  Rules, parts 9535.1700 to 9535.1760, and community mental health 
  4.12  centers as defined in section 245.62, subdivision 2; 
  4.13     (15) government payments received by a regional treatment 
  4.14  center; 
  4.15     (16) payments received for hospice care services; 
  4.16     (17) payments received by a health care provider for 
  4.17  hearing aids and related equipment or prescription eyewear 
  4.18  delivered outside of Minnesota; 
  4.19     (18) payments received by a post-secondary educational 
  4.20  institution from student tuition, student activity fees, health 
  4.21  care service fees, government appropriations, donations, or 
  4.22  grants.  Fee for service payments and payments for extended 
  4.23  coverage are taxable; and 
  4.24     (19) payments received for services provided by:  assisted 
  4.25  living programs and congregate housing programs; and 
  4.26     (20) payments received by a health care provider for 
  4.27  examinations for purposes of utilization reviews, insurance 
  4.28  claims or eligibility, litigation, and employment, including 
  4.29  reviews of medical records for those purposes. 
  4.30     (b) Payments received by wholesale drug distributors for 
  4.31  legend drugs sold directly to veterinarians or veterinary bulk 
  4.32  purchasing organizations are excluded from the gross revenues 
  4.33  subject to the wholesale drug distributor tax under sections 
  4.34  295.50 to 295.59. 
  4.35     Sec. 3.  [EFFECTIVE DATE.] 
  4.36     Sections 1 and 2 are effective for services provided after 
  5.1   December 31, 1997.