By Rep. Paul Anderson
In a late-night session March 14, that actually ended in the early morning hours of the next day, the House passed the Health Insurance Exchange Bill as it came back from conference committee. The wide variety of opinions on this bill is amazing, with Democrats calling it the biggest change in health coverage in the past 50 years, and Republicans saying the exchange will not lower costs or give more choices for those purchasing insurance in this fashion.
The actual cost of setting up this exchange is what’s amazing to me. The state of Minnesota has spent nearly $100 million so far, with most of that money coming from Washington. It’s also estimated that annual expenses of running it will be upward of $60 million a year. The exchange, when it's up and operating, will be an Internet portal and offer residents an online method of purchasing health insurance. It’s especially aimed at the 300,000 Minnesotans who currently are uninsured, although many in this group are eligible for Minnesota Care under current law. In addition, small businesses with up to 100 employees can purchase health coverage on the exchange.
One change in the final bill was an amendment in the House version that said abortion coverage would not be allowed in any plan offered by the exchange. That language was taken out by the conference committee. It’s expected the bill will be acted on by the Senate this week and then signed by Gov. Mark Dayton.
The funding to operate the exchange will come from a tax on all health plans sold. The rate of tax during the first year of operation will be 1.5 percent and could rise to as much as 3.5 percent after that. In addition to questions about the actual cost of operation, I wonder if this will actually lower the cost of health plans to Minnesotans. Another concern is with the availability of plans. A seven-person board will run the Exchange and have virtually unlimited power to do so. After the first year, they can determine which and how many different plans will be offered. There is no assurance that the self-employed and small business employees will be able to keep their current plan or their doctor. If one’s current plan or doctor is only available outside the exchange, they may have to pay more because they won't be able to utilize the federal tax credit.
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This week marks the unofficial mid-point of the current legislative session. Friday is the last day for all bills that contain funding to have their first hearing, so committees will be meeting long hours to get as many bills as possible passed before the deadline. Our Agriculture Policy committee has finished its work, as the policy deadline was last week.
The Legislature will observe a one-week break for the Easter-Passover holiday period. There will be no action next week here in St. Paul at least in the House and Senate. Session will resume again on Tuesday, April 2.
Our weather shows no sign of matching the calendar, which says that spring will arrive this week. Heard lots of talk last Sunday about our cold temps being compared with St. Patrick's Day a year ago when it hit a balmy 80 degrees. Then a blizzard warning sent many of us back to the Capitol early to avoid messy road conditions. All it takes now is a strong wind blowing snow across road surfaces to make travel conditions dangerous. Be safe as you travel.
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