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 Democrat Trifecta spent us into a $6 billion deficit and now they’re trying to take more money from Minnesotans to pay for their mistakes,” said Senator Mark Koran (R–North Branch). “The new taxes in the health bill are a reminder that bad ideas cost taxpayers money. Instead of fixing their mess, Democrats are making Minnesotans do the work to clean it up.”

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.

“Is healthcare getting better or worse? More affordable or more expensive? That’s what Minnesotans should be asking themselves,” said Sen. Koran. “Unfortunately, this bill does nothing to improve healthcare for Minnesotans while also making healthcare more expensive. It’s a lose-lose for everyday Minnesotans and small businesses who are already facing rising premiums and healthcare costs.”