Bill Text: MN HF2402 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Medical device exemptions clarified.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2012-03-07 - Author added Laine [HF2402 Detail]
Download: Minnesota-2011-HF2402-Introduced.html
1.2relating to taxation; sales and use; clarifying exemptions for medical devices;
1.3amending Minnesota Statutes 2010, section 297A.67, subdivision 7, by adding a
1.4subdivision.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 297A.67, subdivision 7, is amended to
1.7read:
1.8 Subd. 7. Drugs; medical devices. (a) Sales of the following drugs and medical
1.9devices for human use are exempt:
1.10 (1) drugs, including over-the-counter drugs;
1.11 (2) single-use finger-pricking devices for the extraction of blood and other single-use
1.12devices and single-use diagnostic agents used in diagnosing, monitoring, or treating
1.13diabetes;
1.14 (3) insulin and medical oxygen for human use, regardless of whether prescribed
1.15or sold over the counter;
1.16 (4) prosthetic devices;
1.17 (5) durable medical equipment for home use only;
1.18 (6) mobility enhancing equipment;
1.19 (7) prescription corrective eyeglasses; and
1.20 (8) kidney dialysis equipment, including repair and replacement parts.
1.21(b) Items purchased in transactions covered by:
1.22(1) Medicare as defined under title XVIII of the Social Security Act, United States
1.23Code, title 42, sections 1395, et seq.; or
2.1(2) Medicaid as defined under title XIX of the Social Security Act, United States
2.2Code, title 42, sections 1396, et seq.
2.3(b) (c) For purposes of this subdivision:
2.4 (1) "Drug" means a compound, substance, or preparation, and any component of
2.5a compound, substance, or preparation, other than food and food ingredients, dietary
2.6supplements, or alcoholic beverages that is:
2.7 (i) recognized in the official United States Pharmacopoeia, official Homeopathic
2.8Pharmacopoeia of the United States, or official National Formulary, and supplement
2.9to any of them;
2.10 (ii) intended for use in the diagnosis, cure, mitigation, treatment, or prevention
2.11of disease; or
2.12 (iii) intended to affect the structure or any function of the body.
2.13 (2) "Durable medical equipment" means equipment, including repair and
2.14replacement parts, including single patient use items, but not including mobility enhancing
2.15equipment, that:
2.16 (i) can withstand repeated use;
2.17 (ii) is primarily and customarily used to serve a medical purpose;
2.18 (iii) generally is not useful to a person in the absence of illness or injury; and
2.19 (iv) is not worn in or on the body.
2.20 For purposes of this clause, "repair and replacement parts" includes all components
2.21or attachments used in conjunction with the durable medical equipment,but does not
2.22include including repair and replacement parts which are for single patient use only.
2.23 (3) "Mobility enhancing equipment" means equipment, including repair and
2.24replacement parts, but not including durable medical equipment, that:
2.25 (i) is primarily and customarily used to provide or increase the ability to move from
2.26one place to another and that is appropriate for use either in a home or a motor vehicle;
2.27 (ii) is not generally used by persons with normal mobility; and
2.28 (iii) does not include any motor vehicle or equipment on a motor vehicle normally
2.29provided by a motor vehicle manufacturer.
2.30 (4) "Over-the-counter drug" means a drug that contains a label that identifies the
2.31product as a drug as required by Code of Federal Regulations, title 21, section201.66 . The
2.32label must include a "drug facts" panel or a statement of the active ingredients with a list of
2.33those ingredients contained in the compound, substance, or preparation. Over-the-counter
2.34drugs do not include grooming and hygiene products, regardless of whether they otherwise
2.35meet the definition. "Grooming and hygiene products" are soaps, cleaning solutions,
2.36shampoo, toothpaste, mouthwash, antiperspirants, and suntan lotions and sunscreens.
3.1 (5) "Prescribed" and "prescription" means a direction in the form of an order,
3.2formula, or recipe issued in any form of oral, written, electronic, or other means of
3.3transmission by a duly licensed health care professional.
3.4 (6) "Prosthetic device" means a replacement, corrective, or supportive device,
3.5including repair and replacement parts, worn on or in the body to:
3.6 (i) artificially replace a missing portion of the body;
3.7 (ii) prevent or correct physical deformity or malfunction; or
3.8 (iii) support a weak or deformed portion of the body.
3.9Prosthetic device does not include corrective eyeglasses.
3.10 (7) "Kidney dialysis equipment" means equipment that:
3.11 (i) is used to remove waste products that build up in the blood when the kidneys are
3.12not able to do so on their own; and
3.13 (ii) can withstand repeated use, including multiple use by a single patient,
3.14notwithstanding the provisions of clause (2).
3.15(8) A transaction is covered by Medicare or Medicaid if any portion of the cost of
3.16the item purchased in the transaction is paid for or reimbursed by the federal government
3.17or the state of Minnesota pursuant to the Medicare or Medicaid program, by a private
3.18insurance company administering the Medicare or Medicaid program on behalf of the
3.19federal government or the state of Minnesota, or by a managed care organization for the
3.20benefit of a patient enrolled in a prepaid program that furnishes medical services in lieu
3.21of conventional Medicare or Medicaid coverage pursuant to agreement with the federal
3.22government or the state of Minnesota.
3.23EFFECTIVE DATE.This section is effective retroactively for sales and purchases
3.24made after April 1, 2009.
3.25 Sec. 2. Minnesota Statutes 2010, section 297A.67, is amended by adding a subdivision
3.26to read:
3.27 Subd. 7a. Accessories and supplies. Accessories and supplies required for
3.28the effective use of durable medical equipment for home use only, or purchased in
3.29a transaction covered by Medicare or Medicaid, that are not already exempt under
3.30subdivision 7 are exempt. Accessories and supplies for the effective use of a prosthetic
3.31device that are not already exempt under subdivision 7 are exempt. For purposes of
3.32this subdivision, "durable medical equipment," "prosthetic device," "Medicare," and
3.33"Medicaid" have the meanings given in subdivision 7.
4.1EFFECTIVE DATE.This section is effective retroactively for sales and purchases
4.2made after April 1, 2009.
1.3amending Minnesota Statutes 2010, section 297A.67, subdivision 7, by adding a
1.4subdivision.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 297A.67, subdivision 7, is amended to
1.7read:
1.8 Subd. 7. Drugs; medical devices. (a) Sales of the following drugs and medical
1.9devices for human use are exempt:
1.10 (1) drugs, including over-the-counter drugs;
1.11 (2) single-use finger-pricking devices for the extraction of blood and other single-use
1.12devices and single-use diagnostic agents used in diagnosing, monitoring, or treating
1.13diabetes;
1.14 (3) insulin and medical oxygen for human use, regardless of whether prescribed
1.15or sold over the counter;
1.16 (4) prosthetic devices;
1.17 (5) durable medical equipment for home use only;
1.18 (6) mobility enhancing equipment;
1.19 (7) prescription corrective eyeglasses; and
1.20 (8) kidney dialysis equipment, including repair and replacement parts.
1.21(b) Items purchased in transactions covered by:
1.22(1) Medicare as defined under title XVIII of the Social Security Act, United States
1.23Code, title 42, sections 1395, et seq.; or
2.1(2) Medicaid as defined under title XIX of the Social Security Act, United States
2.2Code, title 42, sections 1396, et seq.
2.3
2.4 (1) "Drug" means a compound, substance, or preparation, and any component of
2.5a compound, substance, or preparation, other than food and food ingredients, dietary
2.6supplements, or alcoholic beverages that is:
2.7 (i) recognized in the official United States Pharmacopoeia, official Homeopathic
2.8Pharmacopoeia of the United States, or official National Formulary, and supplement
2.9to any of them;
2.10 (ii) intended for use in the diagnosis, cure, mitigation, treatment, or prevention
2.11of disease; or
2.12 (iii) intended to affect the structure or any function of the body.
2.13 (2) "Durable medical equipment" means equipment, including repair and
2.14replacement parts, including single patient use items, but not including mobility enhancing
2.15equipment, that:
2.16 (i) can withstand repeated use;
2.17 (ii) is primarily and customarily used to serve a medical purpose;
2.18 (iii) generally is not useful to a person in the absence of illness or injury; and
2.19 (iv) is not worn in or on the body.
2.20 For purposes of this clause, "repair and replacement parts" includes all components
2.21or attachments used in conjunction with the durable medical equipment,
2.22
2.23 (3) "Mobility enhancing equipment" means equipment, including repair and
2.24replacement parts, but not including durable medical equipment, that:
2.25 (i) is primarily and customarily used to provide or increase the ability to move from
2.26one place to another and that is appropriate for use either in a home or a motor vehicle;
2.27 (ii) is not generally used by persons with normal mobility; and
2.28 (iii) does not include any motor vehicle or equipment on a motor vehicle normally
2.29provided by a motor vehicle manufacturer.
2.30 (4) "Over-the-counter drug" means a drug that contains a label that identifies the
2.31product as a drug as required by Code of Federal Regulations, title 21, section
2.32label must include a "drug facts" panel or a statement of the active ingredients with a list of
2.33those ingredients contained in the compound, substance, or preparation. Over-the-counter
2.34drugs do not include grooming and hygiene products, regardless of whether they otherwise
2.35meet the definition. "Grooming and hygiene products" are soaps, cleaning solutions,
2.36shampoo, toothpaste, mouthwash, antiperspirants, and suntan lotions and sunscreens.
3.1 (5) "Prescribed" and "prescription" means a direction in the form of an order,
3.2formula, or recipe issued in any form of oral, written, electronic, or other means of
3.3transmission by a duly licensed health care professional.
3.4 (6) "Prosthetic device" means a replacement, corrective, or supportive device,
3.5including repair and replacement parts, worn on or in the body to:
3.6 (i) artificially replace a missing portion of the body;
3.7 (ii) prevent or correct physical deformity or malfunction; or
3.8 (iii) support a weak or deformed portion of the body.
3.9Prosthetic device does not include corrective eyeglasses.
3.10 (7) "Kidney dialysis equipment" means equipment that:
3.11 (i) is used to remove waste products that build up in the blood when the kidneys are
3.12not able to do so on their own; and
3.13 (ii) can withstand repeated use, including multiple use by a single patient,
3.14notwithstanding the provisions of clause (2).
3.15(8) A transaction is covered by Medicare or Medicaid if any portion of the cost of
3.16the item purchased in the transaction is paid for or reimbursed by the federal government
3.17or the state of Minnesota pursuant to the Medicare or Medicaid program, by a private
3.18insurance company administering the Medicare or Medicaid program on behalf of the
3.19federal government or the state of Minnesota, or by a managed care organization for the
3.20benefit of a patient enrolled in a prepaid program that furnishes medical services in lieu
3.21of conventional Medicare or Medicaid coverage pursuant to agreement with the federal
3.22government or the state of Minnesota.
3.23EFFECTIVE DATE.This section is effective retroactively for sales and purchases
3.24made after April 1, 2009.
3.25 Sec. 2. Minnesota Statutes 2010, section 297A.67, is amended by adding a subdivision
3.26to read:
3.27 Subd. 7a. Accessories and supplies. Accessories and supplies required for
3.28the effective use of durable medical equipment for home use only, or purchased in
3.29a transaction covered by Medicare or Medicaid, that are not already exempt under
3.30subdivision 7 are exempt. Accessories and supplies for the effective use of a prosthetic
3.31device that are not already exempt under subdivision 7 are exempt. For purposes of
3.32this subdivision, "durable medical equipment," "prosthetic device," "Medicare," and
3.33"Medicaid" have the meanings given in subdivision 7.
4.1EFFECTIVE DATE.This section is effective retroactively for sales and purchases
4.2made after April 1, 2009.
