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State Representative Rick Hansen
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-6828
For more information contact: Matt Swenson 651-297-8406
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HEALTH & HUMAN SERVICES FINANCE BILL PASSES HOUSE
ST. PAUL – During last week's series of marathon floor sessions in the House, legislators once again came through on the pledge to deliver on the basics by passing the Health and Human Services Finance Bill. This bill (SF2171), passed by a vote of 86 to 45, creates significant reform and cost reductions in the health care system, provides health care coverage for every child in Minnesota by 2011, and increases support for Minnesota nursing homes.
"I am very pleased with this plan," said State Rep. Rick Hansen (DFL-South St. Paul) who supports the legislation. "Providing all Minnesotans access to adequate and affordable health care is an essential priority that we as a Legislature must continue working to achieve. This bill is a necessary step in the right direction."
A major component of SF2171 is the Cover All Kids provision, which provides coverage for the 70,000 Minnesota children currently without health care coverage. It also extends coverage to dependent young adults up to age 25. The cost is $99 million in 2008-2009 and $373 million in 2010-2011 when the initiative is fully phased in.
"First and foremost, our children need and deserve access to quality medical services," said Rep. Hansen. "This bill will help ensure that no child in our state is denied the right to see a doctor."
In addition to covering all of Minnesota's children by 2011, the bill also begins addressing the burden of rising health care costs for the 93percent of Minnesotans who currently have health care coverage. The centerpiece of that effort is a provision that provides better access and uniformity to health cost information and lower costs through a medical home model, physician-directed care coordination, and payment system reforms.
Other highlights of the bill include:
· $393 million for rate increases for long term care providers including nursing homes
· $116 million in Mental Health Initiatives
· $101 million to reduce Medicaid asset limits for elderly and disabled Minnesotans
· $28 million to reduce copays for Medicaid coverage of Medicare Part D
· $3 million to provide access to MinnesotaCare for farmers
The bill includes $393 million in additional funding for Minnesota nursing homes and long-term care providers over the next four years. Seventy-five percent of the funding increase must be used to increase the wages and benefits for workers in those facilities. It also reforms the way nursing homes are reimbursed by the state, a move that will benefit nursing homes in both the metro and greater Minnesota areas.
Several years ago, the state froze reimbursement rates for nursing homes and cut their budgets by $32 million statewide. Because of this, one in four of Minnesota's 402 nursing homes were at risk of closing because of financial losses. In the past ten years, well over 30 nursing homes across the state have closed, with as many as six more at risk before the end of the year.
As a result of these cuts, nursing home staff have not received a cost of living increase in over three years. Legislative efforts in 2005 to pass a cost of living adjustment were struck down and nursing home staff wages still lag behind those of hospital staff and other caregivers. As a result, it is very difficult for nursing homes in Minnesota to retain good staff.
"My father currently lives in a nursing home. Because of that I understand personally that those who care for our loved ones in nursing homes are compassionate and dedicated people who recognize the importance of helping our seniors live out their lives with dignity and self-respect," said Rep. Hansen. "They deserve to be paid adequately for their efforts."
In addition to these long-term care provisions, the bill strengthens programs that help senior and disabled Minnesotans remain in their homes, increases access to affordable quality childcare for working families, and expands access to mental health treatment.
The bill will now go to a conference committee in which members of the House and Senate will iron out the differences between their plans before the bill is sent back to the floors of both bodies for a final vote. The legislation will then be sent to the Governor for final approval.
"I am hopeful that this bill will be signed into law this session to enact significant reform in our health care system," said Hansen. "In doing so, all Minnesotans will benefit."
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