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State Representative Jim Abeler
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-1729
For more information contact: Amber Berhow 651-296-5520
NEWS RELEASE
LEGISLATORS UNVEIL PLAN TO COVER MORE FAMILIES
The 7.4% Solution Restores Power to Families
St. Paul - Rep. Jim Abeler (R-Anoka) introduced what he called a new approach to the longstanding problem many families face of no health insurance or poor access to care. The approach is market-based, targeted specifically at the 7.4% of Minnesotans currently lacking health insurance, including all uninsured Minnesota children.
“This is one of the biggest problems facing the state and its families,” Abeler stated. “Health care should not be a partisan issue. All parties need to give their best wisdom and effort in order to find a solution that works.”
“Two problems currently compound health care costs related to the uninsured,” Abeler explained. “First, those without insurance often seek care at the emergency rooms - the most expensive place to receive care. Second, those without insurance often put off necessary health care, as their conditions worsen. This is not only harmful to their health, but often results in far more costly treatment.”
Abeler cautioned that proposals to expand MinnesotaCare, the state’s once-innovative public health care program, would result in restricted patient access to a wide range of providers, including many who treat children. Now MinnesotaCare compensates providers’ services at fees below cost, causing many doctors and clinics to consider dropping out of participation in the public plans. A number already have.
“Coverage without access is really not coverage at all,” Abeler said. “We need a public-private solution, the people need choices, and they need to be connected to the process.”
Abeler is proposing a plan targeted specifically to the 7.4% of uninsured in Minnesota, beginning with families who cannot afford MinnesotaCare premiums or who are otherwise ineligible. “Minnesota has a smaller problem than any other state because of the success of the private and group market. It is risky and unaffordable to undo the successes that have gotten us to a 92.6% insured rate. By focusing on the uninsured, and helping those who are at risk of losing coverage due to high premiums, we can make a real difference in the health of our state.”
“Our plan works to cover all the uninsured kids and more families, expands tax deductions to leverage federal tax dollars to stretch family health budgets, assures access to quality care by paying reasonable provider reimbursement rates, and increases portability,” Abeler summarized.
Starting January 1, 2008, individuals at or below 300% of Federal Poverty Guidelines (FPG) would be eligible for a full coverage MN insurance or HMO policy. The policy would have a $1000 individual or $2000 per family deductible, which would be provided on a debit card for use towards covered health care expenses. Once this deductible is exhausted, care would be covered at 100% with no co-pays or benefit caps. Preventative care would be fully covered, as well. There would be no monetary gaps as sometimes occur in other private health plans.
Every year, excess dollars not used on the debit card would roll over into a Personal Health and Education Account, owned by the family. These dollars could be used for health expenses that are not covered under their plan, long-term care, or postsecondary education.
Cost to the individual or family would be determined on the “front end” as an insurance premium cost as a percentage of income, with no additional co-pays or cost-sharing. The state would subsidize these premiums in a manner similar to current MinnesotaCare premiums, extending from 2% to 10.8% of income.
This option would also cover families who cannot afford employer coverage, defined as a premium share greater than 15% of family income. Policies would be issued as individual or family policies through a choice of multiple Insurance Exchanges. By using an Insurance Exchange, a person’s premiums would be tax deductible, which would make them more affordable.
“This is a comprehensive solution that reduces costs and expands health care access to more Minnesota families,” Abeler said. “We also eliminate the four month waiting period and much of the unnecessary and burdensome paperwork. Plus they would have the advantage of having a live person to deal with as they sign up, compared to a confusing website or a not-so-helpful state helpline.”
Abeler said this new plan would be paid for with Health Care Access Fund monies, requiring no General Fund dollars. He estimated that most of the 66,000-80,000 uncovered children in the state would be covered under the proposal.
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