Senate File 2765, presented April 1 by Senator Hauschildt, would amend Minnesota law to exempt small rural ambulance services from the state healthcare provider tax. The exemption would apply to ambulance providers outside the seven‑county Twin Cities metro area and outside specified cities (Duluth, Mankato, Moorhead, Rochester and St. Cloud) with annual revenues under $10 million. The bill also authorizes the commissioner of human services to seek a federal waiver if needed to maintain federal financial participation for medical assistance services.

Senator Hauschildt framed the bill as targeted relief for greater Minnesota EMS providers facing unique financial challenges. He said the proposal grew out of constituent input and aimed to reduce the burden on small ambulance services.

Randy Strohmeyer, executive director of Lake County Ambulance Service, testified that many small, rural ambulance services operate on thin margins and that exempting them from the provider tax would allow them to retain funds for equipment, personnel and medications. Strohmeyer said the change would increase the number of exempt volunteer ambulance services by about 34 and described the change as a “time savings upfront” compared with paying a tax only to receive state funds back through other mechanisms.

Senator Hauschildt moved that SF 2765 be passed without recommendation and referred to the Committee on Health and Human Services; the motion prevailed by voice vote.

The committee noted the Department of Revenue’s preliminary fiscal estimate that the proposal would reduce revenue to the Health Care Access Fund beginning in 2026; the bill will proceed to the Health and Human Services Committee for further consideration.