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State Representative Greg Davids

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Posted: 2010-05-06 00:00:00
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NEWS RELEASE

REP. DAVIDS’ “SIX PERCENT SOLUTION” TO BENEFIT NURSING HOMES


ST. PAUL – As part of a comprehensive health and human services funding proposal that was approved in the Minnesota House recently, State Representative Greg Davids (R-Preston) successfully offered a bill that would significantly improve funding for nursing homes. Davids’ legislation was approved on a voice vote.

Davids said his “six percent solution” would substantially increase funding to long-term care facilities without raising taxes or fees.

“There’s no doubt our nursing homes could use a boost in funding, and I was pleased to find a way to offer them and their workers some financial support,” Davids said.

Under Davids’ plan, profits on Health Maintenance Organizations (HMO) would be capped at six percent only on their government business, meaning any excess would be delivered straight to Minnesota’s nursing homes. Commercial business for HMO’s would be unaffected.

“I am a big believer in capitalism and free enterprise,” Davids said. “But when you’re talking about HMO government business, you are talking about taxpayer dollars being used.”

Davids said he also offered separate legislation that would have increased nursing home funding by 3.5% this biennium, but that proposal was defeated by the House majority.

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