The Senate today passed a partisan Health and Human Services budget bill on a party-line vote. The legislation raises the provider tax from 1.8% to 2%, adds two new assessments on health plans, and increases fees across the board—totaling more than $5 billion in new costs over the next four years. These changes will ultimately drive up healthcare costs and make care less affordable for Minnesotans.

“The policies in this bill will make life more expensive for Minnesotans and drive up costs for local businesses,” said Senator Julia Coleman (R–Waconia). “After growing government spending by 40% and raising taxes by $10 billion, Democrats are now squeezing even more from Minnesotans’ wallets to fund healthcare for illegal immigrants while cutting support for nursing homes across the state.”

The provider tax—often called the “sick tax”—is a tax on healthcare providers for delivering services in Minnesota. Providers are expected to pass this cost onto consumers, generating over $410 million in higher healthcare costs over the next four years.

Meanwhile, despite financial strain on nursing homes across the state, the bill continues to fund MinnesotaCare coverage for undocumented immigrants. The program was projected to serve around 5,000 individuals by the end of this year. Just months in, enrollments have already surpassed 17,000, tripling the original estimate and driving projected costs from $200 million to $600 million over four years.

“It’s not the Legislature’s job to raise taxes every time there’s a problem,” said Sen. Coleman. “That’s not serving Minnesotans, that’s taking from them. People aren’t a blank check. They expect real solutions, not another reach into their wallets. This health bill doesn’t offer anything innovative to address the challenges we’re facing. It just shifts more money from families to government, plain and simple.”