Rep. Robbins asks committee to exempt chiropractors from provider tax after state cut benefits

Rep. Robbins introduced House File 4048 at the Minnesota House Health committee hearing on March 11, asking lawmakers to exempt chiropractors from Minnesota's provider tax after chiropractic coverage was removed from state health programs.

Supporters said the state's recent benefit cuts left chiropractors paying a tax tied to benefits they no longer provide. "Until the chiropractic benefit is restored, we respectfully request an exemption for chiropractors from the provider tax," said Dr. Adam Millsap, identifying himself as a doctor of chiropractic and president of the Minnesota Chiropractic Association. "How can our providers be expected to take on this tax and administrative costs while losing the ability to help our patients?" he said.

Dr. Doug Broman, who identified himself as a chiropractor serving Maple Grove for 40 years, described most chiropractors as small business owners and said the provider tax is "utterly unfair to be required to pay a tax for services that you are no longer able to provide." Broman warned patients who lose access to chiropractic care may seek costlier services in urgent-care clinics or emergency rooms.

Committee members asked whether the provider tax applies to all licensed providers regardless of Medicaid participation and whether a separate bill to reinstate chiropractic coverage would moot the exemption. Rep. Liebling noted the tax's mechanics and observed that although the tax is remitted by providers, it can functionally operate as a charge passed through to patients. Testifiers and the bill author said most chiropractors participated when coverage existed but could not provide an exact statewide count during the hearing.

Representative Perriman moved and the committee recommended HF4048 be referred to the Committee on Taxes. The referral was approved by voice vote. The author said she would accept amendments and work with other authors who are pursuing benefit-restoration bills.

Next steps: HF4048 was referred to the Taxes Committee for further consideration and possible amendment; stakeholders indicated they would continue discussions about combining language with bills aimed at restoring chiropractic coverage.