Minnesota Bill Seeks Car Insurance Tax to Bolster Trauma Care

A Minnesota bill would tax car insurers $10 a year for every covered vehicle to bolster funds for the state’s emergency and trauma services.

Under HF 1967, the tax on Minnesota car insurance companies would go into a “special revenue fund” for emergency services to be broken down as follows:

  • 75 percent for “payments to trauma hospitals”
  • 15 percent for “air and ground ambulance services”
  • 10 percent for “trauma coordination and training”

Car insurers already pay similar state-mandated “assessments” in other states, but they are generally passed onto policyholders in the form of higher premiums. California charges a per-vehicle tax to car insurers to fund law enforcement activities, while a per-vehicle assessment in Michigan funds pricey claims for severe crash injuries.

According to local news reports, Rep. Dan Schoen (DFL-Newport) said his bill is expected to bring in $20 million a year and seeks to tax auto policyholders because most trauma center patients are car crash victims.

On Tuesday, supporters of the bill, introduced last week, hosted a news conference at the state Capitol, where they expressed concern with Minnesota’s ranking in a report on emergency care showing that the state had slipped out of the top 10 in the U.S.

Schoen, a member of the state Police & Peace Officers Association and the Fraternal Order of Police, and more of the bill’s supporters are scheduled to present “A Status Report on Minnesota’s Emergency Care Environment” on Thursday at a hospital in Northfield, Minn., south of Minneapolis.


About Charles Nguyen
Charles Nguyen is an enterprising journalist who reported for Patch.com and the Desert Dispatch and was the editor in chief of the Guardian (the twice-weekly newspaper at the University of California, San Diego) before coming to Online Auto Insurance News.

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