For more information contact: Sandy Connolly 651-296-8877
One of the main sticking points that has contributed to this Special Session is health care. While there is pressure to finish quickly, we need to be clear about what is at stake.
Under the administration's budget proposal, an estimated 30,000 working individuals will lose their MinnesotaCare health care coverage, 18,000 in Greater Minnesota alone. In fact, the cuts are so deep that a part-time worker earning the minimum wage of $5.15 per hour would make too much to qualify for that coverage. This isn't a free handout; these are working people who do not receive health benefits through their employer, leaving MinnesotaCare as their only option.
A report by Families USA indicates that families who have insurance through their private employers will pay, on the average, an additional $900 this year in insurance premiums to cover the cost of health care for the uninsured; individuals will pay an extra $341.
By 2010, these premiums will be $1,500 higher for families and $532 for individuals, all to cover the costs to doctors and hospitals for caring for individuals who do not have health insurance.
Right now we have a program in place that allows people who don't have private health insurance to purchase coverage through the state. If the Governor is successful in cutting that, not only will we be hurting thousands of Minnesotans, but the cost to those of us with health care coverage will continue to rise. Clearly, this is not an acceptable answer to our budget deficit.
The cuts don't end there. The Governor's plan will cut $56 million in payments to hospitals, with $40 million more lost in matching Federal funds.
Nursing Homes will also face another round of cuts under this budget proposal. Two years ago, the Governor froze payment rates to nursing homes and trimmed an additional $32 million. The current proposal will eliminate an annual inflation adjustment that about 75% of homes are entitled to receive. These cuts have the very real potential of forcing some nursing homes statewide out of business, adding to the nine that closed last year alone due to financial difficulties.
The health care workers in our hospitals and nursing homes have borne the brunt of much of the budget cuts - many of them have not received a pay increase of any kind for over three years. These people provide loving care to our most vulnerable fellow citizens day after day and they deserve to be treated fairly.
This budget proposal is not an answer to the growing health care crisis our state is facing. Instead of cutting people, we need to look for ways to increase the number of Minnesotans with health care coverage. We also need to support our hospitals and nursing homes, especially at this time of dwindling insurance reimbursements.
Adequate, affordable health care for all Minnesotans needs to be protected-this is one of the things we are working for as we look for a compromise to end this special session.