ST. PAUL – Early this week, Republicans in the state House and Senate majorities released their Health and Human Services budget agreement. Despite federal uncertainty surrounding health care and growing needs such as increased childcare access and wages for homecare workers, the combined bill cuts $482.44 million from this area of the budget.
State Rep. Jennifer Schultz (DFL – Duluth), the lone House DFLer to serve on the conference committee for the bill, says the package was put together in secret, and will cause real harm to Minnesotans.
“House Republicans are again insisting on putting the richest among us ahead of the most vulnerable Minnesotans, the health of whom we have a responsibility to protect. This isn’t acceptable to me, and I’m confident it isn’t acceptable to most Minnesotans. But they weren’t able to weigh in on this bill, which was put together behind closed doors over the weekend,” Rep. Schultz said. “While the total cut under this package isn’t quite as awful as what initially passed the House Floor, characterizing this as an improvement would be a disservice to those Minnesotans who would bear the brunt of the consequences this bad bill will certainly create.”
In addition to inadequate funding, there are other provisions in the bill causing significant concern. One of these is weakening of a proposal recommended by the Minnesota Attorney General’s office related to the transition of HMO’s from non-profit to for-profit status. Such transitions were initially allowed by the health insurance premium relief bill passed earlier this session.
“The only thing transparent in this entire process has been the GOP’s eagerness to deliver handouts to corporate special interests, and they do so yet again in this legislation.” Rep. Schultz said. “Because of this bill’s failure to include adequate consumer protections, millions of taxpayer dollars can now be funneled directly to the pockets of CEOs and other health insurance executives. This is on top of the millions in giveaways they have already received in the so-called reinsurance bill. In just five months, the Republicans have driven a paradigm shift in Minnesota health care policy from an objective of wellness for Minnesotans, to a motive of profit for insurance companies.”
During the single conference committee meeting after the secretly negotiated agreement was released to the public, Rep. Schultz attempted to remove language looking to limit hospital readmissions, which is a mandate duplicating current efforts. This was voted down on party lines.
Another complex duplicative mandate in the bill requires hospitals to purchase IT software from 3M or another vendor for health outcomes reporting. The Minnesota Hospital Association is already doing this, and was opposed to this measure.
In order to meet the budget target given by House and Senate leadership, the bill also books $505 million of false savings that will lead to a massive reduction in services to vulnerable populations. If the savings come unrealized, this will result in a 7.4 percent reduction in provider reimbursements.
Rep. Schultz remains hopeful an agreement can be reached between legislative Republicans and Gov. Dayton before the adjournment date of May 22.
“The only good news about this bill is that there is still time in the session to get it right,” Rep. Schultz said. “Such massive cuts may be politically expeditious for Republicans in the Legislature, but in order to achieve a resolution on this, we will need to quickly reverse course, and make decisions which put Minnesota families before corporate interests. I remain committed to being part of a compromise getting us there.”