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To the Editor:
Balancing the state’s budget will be the primary focus in the Minnesota legislature in the next few weeks before adjournment. The negotiations will be tough, but I remain committed to striking a responsible deal by our Session deadline.
The most intractable budget challenge is health care. Governor Pawlenty and the House Leadership have decided to balance the overall budget by eliminating health coverage for an additional 30,000 Minnesotans. Thousands of those cut would be individuals on MinnesotaCare who are currently working but who don’t receive health care coverage through their employer. These people pay a premium every month and make co-pays in order to enroll in MinnesotaCare. The Republican plan will also reduce the reimbursements paid to hospitals by $150 million.
If the Republican cuts were true reform and fiscally responsible, the Legislature could have a productive policy debate. But the proposed cuts to health care are neither reform nor financially sound. The cuts will not save the health care system one penny. Rather, the House Republican plan will make health care more expensive by denying people cost-effective preventative care and forcing them into emergency rooms, the most expensive form of health care. Those increased costs are then simply foisted onto the private market, which means that each of us fortunate enough to have health insurance through our employer or on our own will be paying higher premiums. Finally, the direct result of the eligibility cuts will be people leaving the workforce in order to qualify for health coverage under other state programs. That is not a sensible, long-term vision for Minnesota.
Fortunately, there is an alternative. I have worked with my colleagues to craft a balanced health care budget proposal that preserves health coverage for working Minnesotans. It does not force sick Minnesotans to spend into deep poverty to gain health coverage. And it pays hospitals and health care providers enough to cover their costs, ensuring we have a strong, vibrant health care system for the long-term.
We also include important reforms like a reduction in the so-called “sick tax" which will result in an immediate savings to the health care system of $134 million. The plan also includes my proposal for a tax credit for those generous Minnesotans who care for a family member at home instead of placing them into a nursing home.
Finally - and this is extremely important to me -- the proposal is truly financially sound. We propose to raise MinnesotaCare premiums by 10% to mirror increases we have seen in the private sector. And we will impose an increased cigarette fee, the proceeds of which will be dedicated to health care and placed in a separate account.
I have heard loud and clear from you that you consider affordable, quality health care essential if people are going to have the opportunity to succeed. Our health care spending is an investment in the people of Minnesota and the state’s prosperity. We need a plan that will invest more wisely that the plan the Governor has proposed.
Sincerely,
Representative Paul Thissen