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State Representative Patti Fritz
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-8237
For more information contact: Sandy Connolly 651-296-8877
NEWS COLUMN
HEALTH CARE BILL PROTECTS MINNESOTANS, CREATES JOBS AND LEVERAGES $1.4 BILLION IN FEDERAL DOLLARS
After working around the clock for days, the members of the Health and Human Services Conference Committee reached an agreement Wednesday on a health care bill to send to the Governor. While I was not on the conference committee, I participated in the meetings as much as possible, and worked with the members on crafting a bill that takes care of our top priorities. I was especially concerned that funding for our nursing homes remained stable, and was very pleased to see that even though we were not able to get meaningful increase, we did prevent cuts.
The bill also maintains funding for State Operated Serviced (SOS) dental clinics, including the one located in Faribault. It restores important funding for mental health programs, and protects child care providers and low-income families from crippling cuts. There is also no increase to the “granny tax" paid by privately insured residents in nursing homes, as was proposed by the Governor.
A critical component of the bill is a plan for Minnesota to opt-in to an early Medical Assistance (MA) option being offered to our state through the federal health care reform bill. This would apply to adults earning under 75% of the federal poverty guideline, which is about $8,000 a year. Most of these individuals are currently covered by General Assistance Medical Care (GAMC), and some are on MinnesotaCare. By transferring this population to MA, not only will they receive more stable and comprehensive care, the hospitals that treat them will receive significantly better reimbursement levels.
The early MA option offers substantial improvements over the GAMC compromise the Governor leveraged earlier this session. Only a handful of hospitals have agreed to participate in that plan, and those in rural Minnesota are especially hurt by the lack of funding included in the stripped-down GAMC bill.
Just as significant, this MA option offers a huge financial return for our state. By spending an additional $188 million, we will receive $1.4 billion from the federal government. Put another way, for every dollar we spend, we get back $7.45. In the year 2014, the MA option will be 100% paid for by the federal government, making it an even better deal for Minnesota.
The money this plan generates will go to hospitals, clinics, doctors and nurses, and is a great way to get back some of our hard earned tax dollars from the Federal Government. It is estimated over 80,000 Minnesotans will benefit from this plan, and as many as 21,000 jobs will be protected and created. The early MA option is a win/win for our hospitals, workers, consumers and taxpayers.
Of course, painful cuts remain in this bill. It cuts $114 million in 2011, and $155 million in 2012-13. Included among the cuts are a small rate reduction to hospitals and HMO’s, which will be more than offset by the early MA option, and a rate cut to specialists. Additional savings is garnered by delaying rate rebasing for both hospitals and nursing homes until 2013.
The bill generates $166 million in revenue through surcharges on hospitals, HMO’s and ICF/MR’s. The money generated by these surcharges will draw down federal money, and will then be repaid. This is a funding tool similar to one used by the Governor in 2003, and I hope he will once again support it.
At a time of continuing budget deficits and persistent deep cuts to the health care budget, this legislation is reasonable and responsible. It protects our most vulnerable citizens, including seniors and children, and is fiscally responsible. Governor Pawlenty indicated he would veto this bill even before he received it, but I remain hopeful that once he considers its strengths, he will reconsider and sign this legislation into law.
News Items
- STATE REP. PATTI FRITZ PARTICIPATES IN START OF LEGISLATIVE SESSION - (Posted: Jan 9 2013 3:32PM)
- Rep. Fritz: Homeowners, Farmers Need Property Tax Relief - (Posted: 2012-05-01 00:00:00)
- Rep. Fritz: Let’s Vote on a Bonding Bill that Benefits All - (Posted: 2012-04-19 00:00:00)
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