Taxes increase premiums

Most Minnesotans don’t realize that health care premium taxes are a big part of the premium you pay each month.

Health care taxes are hidden. Most Minnesotans who pay these taxes and don’t even know they exist. The chart below shows most of Minnesota’s small employers, farmers and other individuals pay three times more in health insurance taxes than large employers that are exempt from most state health insurance taxes under federal law.

Public support for health care programs is important and has contributed to Minnesota having one of the lowest uninsurance rates in the country. However, it is unfair that smaller employers and individuals pay four to five times more in premium taxes than large employers do to fund these programs.

Health care premium taxes are the largest component of health plan administrative bills. In 2016, Minnesotans paid $370 million in health care premium taxes and assessments.