If a MN provider/facility: Do you add in the MN Care Tax charge as a line item?

Kali 7 years ago in Accounting/Collections Modules updated by Cindy 7 years ago 15

Curious to know how other MN Providers use Procentive to track MN Care Tax, and if they pass this onto the client? If you do pass along to client, how do you have this set up in Procentive?


Is this really something to charge the client? We understand that it's what the provider has to pay in, based on how much they've earned from all payers, who are included in the MN Care tax. Some payers are excluded therefore, we don't have to pay MN Care tax on those.

Be very careful with this. I got audited for 3 years for not paying correctly. I encourage you to seek financial/legal assistance to ensure you are paying it correctly on behalf of yourself and anyone who works in your clinic. Procentive has nothing to do with this and should not be. It is a tax/regulation issue. Move forward with caution and best wishes to you. Better to pay, on all insurance payments received and for all your clinicians. CYA!!


There is a setting in Procentive for the Payers module to have MNCare Inclusion as MNCare or Not MNCare, in case anyone didn't know this.

Crystalp - Is this located in the Payers Module, Payer Rules Tab?

In Payers module, Payers tab

Hi Crystal, I was unaware of this setting, but I have checked Payer module/payer tab in two different payers and it is not an option... did you have to change a setting somewhere else in order to be able to utilize this?


This is not an option for us as well.



I am not sure if there is a Procentive setting. It's been like this since I've been with my company. Ask Procentive.


This is a custom payer category that has been setup by your company which is linked to a custom report within Procentive. Since this is a custom setup it will not appear for other companies.

Thanks! I was curious to see if anyone else does this within the Procentive community. I don't believe it is "normal practice" to pass along the MN Care Provider Tax of 2% onto the client.

As Alyson indicated below, MN Care tax is not something you can charge the client...it is a tax on your revenue for non-government payer (although for some reason PMAPS aren't excluded) payments. We base our liability on all payments received during the reporting quarter minus those payers that are excluded. CYA is a good plan.


We have wondered about passing the MN Care tax onto our clients too. My vision doctor passes the MN Care tax onto me as a client?? We have been through an audit also, I think the state does not care who pays for it as long as they receive their 2% in paid in full.

Wouldn't the provider end up doubling on paying the MN Care tax if they charge the 2% to the client?

Both insurance or private pay payments count toward gross receipts. Wouldn't taxing 2% to the client would count toward gross receipts also?

A source I have at the State of Minnesota provided me with Minnesota Statue 295.582 Tax Expense Transfer.

" (a) A hospital, surgical center, or health care provider that is subject to a tax under section 295.52, or a pharmacy that has paid additional expense transferred under this section by a wholesale drug distributor, may transfer additional expense generated by section 295.52 obligations on to all third-party contracts for the purchase of health care services on behalf of a patient or consumer."

What is the most efficient way to calculate quarterly MN Tax payments?