Why are they called premiums instead of taxes?
Opponents will say that the MN Health Plan will drive up taxes. Aren’t these taxes? Keep in mind that health care is now one-sixth of the entire economy. Funding the MHP isn’t like adding some additional taxes to pay for a new government program or service. We are talking about restructuring how we finance one-sixth of our economy, most of which is and would remain in the private sector. We are simply shifting the premiums that people pay to their current health plan to the MN Health Plan. Likewise, employers would now be paying their share to the MN Health Plan. These premiums would replace all current premiums and out of pocket expenses for health care. Unlike taxes, these premiums do not go to the state treasury; they go directly to the MN Health Plan. They cannot be taken by the governor or legislature and cannot be used to balance the state budget or pay for anything else.
