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State Representative Jeanne Poppe

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Posted: 2010-05-04 00:00:00
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Press/News Releases

HOUSE PASSES HEALTH CARE BILL TO REDUCE DEFICIT, SUPPORT PRIORITIES




St. Paul, MN – The Minnesota House of Representatives passed its Health and Human Services budget bill Tuesday night, putting in place what could be the final component of a balanced budget bill. The legislation reduces the state budget deficit by $164 million this year, and by over $1 billion in the next biennium.
State Rep. Jeanne Poppe supported the bill, in large part because it provides a balanced approach to funding our high priority needs while cushioning more severe reductions to rural hospitals and nursing homes.
“The spending reductions we are required to make during these difficult budget years are harsh and painful," said Poppe. “There are provisions in this bill, however, that will improve funding to hospitals, protect nursing homes, and maintain health care coverage for 35,000 Minnesotans.”
The bill leverages over $1 billion in new federal dollars with an early Medical Assistance (MA) option made available through the recently passed federal health care reform legislation. By shifting Minnesotans who are currently covered by General Assistance Medical Care (GAMC) to federally funded MA, hospitals will actually be reimbursed for the cost of providing care. This option captures federal funds for Minnesota that would otherwise go to Wisconsin, Massachusetts, New York or any of the other 10 states eligible for this option.
“This early MA option would significantly improve the reimbursement rates for hospitals who treat low-income residents,” said Poppe. “Austin Medical Center who is planning for as much as $1 million in losses because of the GAMC restructure, needs a better option. This bill allows us to capture federal dollars and during this time of need, the early enrollment option would be irresponsible to disregard.”
An amendment on the House floor passed that would close tax loopholes for Foreign Operating Corporations (FOCs) and reduce tax havens that allow Minnesota companies to avoid paying taxes. According to Rep. Poppe, by closing these loopholes, a funding increase of 2% can be provided to nursing homes, and restore cuts to mental health grants and county child protection services.
“Most Minnesotans and Minnesota businesses pay their fair share of taxes,” said Poppe. “This amendment forces those who make use of these loopholes to participate in solving the state budget deficit.”
Rep. Poppe said while she understands the Governor has threatened a veto of this bill because of this provision, the conversation needs to shift to what Minnesotans value for our citizens.
“At this point we have to step up to support struggling nursing homes and do what we can to minimize the damage which can be done through severe health care cuts.”

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