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State Representative Tina Liebling

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100 Rev. Dr. Martin Luther King Jr. Blvd.
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Posted: 2010-02-19 00:00:00
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Press/News Releases

House restores health care to 85,000 Minnesotans


ST. PAUL, MN – The state House overwhelmingly approved legislation today to keep health care for Minnesota’s poor and sick at a lower cost to Minnesota taxpayers. The legislative solution, which passed 125-9, would restore General Assistance Medical Care (GAMC) for 16 months, providing basic health care to 35,000 Minnesotans a month. Following the House passage, the Senate also approved the legislation.

The legislative GAMC solution is significantly less expensive and more cost-effective than the Governor’s proposal to auto-enroll GAMC patients into MinnesotaCare. The Governor’s plan would provide care to 21,000 Minnesotans per month at cost of $937 per enrollee for six months. The legislative solution would provide care to 38,000 per month at a cost of $457 per enrollee for sixteen months.

In addition to being a more fiscally responsible plan than the Governor’s, the House’s plan will be less of a burden to hospitals.

“Without this bill, GAMC will run out on April 1, people will still get sick, but they will not be able to pay for their treatment, and the hospitals will not be reimbursed," said Rep. Tina Liebling (DLF-Rochester). “The costs of uncompensated care will be passed on to all Minnesotans through higher premiums, higher hospital bills and higher property taxes.”

Under the legislation passed today, the Mayo Clinic would save more than $5 million compared to Gov. Pawlenty’s plan.

Minnesotans who receive General Assistance Medical care all earn less than $8,000 per year. Of the Minnesotans on the program, 80 percent have mental health issues and 60 percent have chronic medical conditions. Also, 8,000 veterans are served by GAMC, including several veterans who watched the debate from the House gallery.

To achieve cost-savings, the legislative solution employs innovative reforms and cost-cutting measures, including a new, efficient mental health urgent care program. Eligibility is tightened and hospital-only coverage is eliminated for individuals with income above 75 percent of poverty. Hospital provider rates will be cut, making the temporary program less expensive to run.

“Mayo Clinic and other Minnesota hospitals support this measure because it’s better for them financially and allows their staffs to provide better care,” Liebling said.

General Assistance Medical Care will expire on April 1, 2010 if a GAMC restoration bill is not enacted. Liebling expressed disappointment that the Governor quickly decided to veto the bill, even after strong support by Republicans in the Legislature.

“If we don’t override this veto, Minnesota is saying ‘no’ to serving the poor, reducing the strain on hospitals and providing a fiscally responsible plan during a time of tight budgets,” Liebling said.

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