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Legislative News and Views - Rep. Jim Davnie (DFL)

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2013 Session Update

Friday, February 22, 2013

Dear friends,

Earlier this week, Governor Dayton signed Medical Assistance Expansion into law.  Medicaid expansion will provide health care coverage to an additional 40,000 low-income, uninsured Minnesotans through a federally funded program.  This is the first bill to pass the House and Senate this session and it did so with bipartisan support.

Please check out my first video update below to hear about the school-based mental health initiative that I have been working on at the Capitol.  The bill got its second hearing this week and will be heard in at least one more committee.  Addressing the mental health needs of our kids and families in schools is a priority as we seek to give kids the resources they need to be successful.

http://www.youtube.com/watch?v=20rSsLVi7Fo&feature=youtu.be

If you have topic suggestions for future video updates, please let me know.

This week, the House Tax Committee heard the Health Insurance Exchange bill.  The exchange will be an online marketplace where Minnesotans can compare and purchase affordable health insurance coverage. 

These exchanges are a product of the federal Affordable Care Act backed by President Obama.  If Minnesota does not pass its own health exchange policy by March 31, 2012, we will have to use the one-size-fits-all federal exchange instead.  A Minnesota-based exchange allows us the opportunity to move our public health systems forward and to provide Minnesotans with affordable, quality health care.  For this reason, we are moving quickly to put the exchange in place. 

The health insurance exchange will serve 1.2 million Minnesotans and families are projected to save over $1 billion by using the exchange to purchase insurance.  Minnesota has a unique opportunity to lead the country in health reform by implementing a system to deliver affordable and quality coverage.  Through the exchange, roughly 300,000 uninsured middle-class Minnesotans will gain coverage by 2016.

In addition to families, 200,000 small businesses employees are expected to gain coverage through the exchange. Currently, small businesses pay an average of 18 percent more than large businesses for insurance.  That’s an average of $11,000 per year for family coverage.  Small employers will save an estimated 7.5 percent off of premium costs through the exchange.  Small business owners will have the opportunity to choose a plan for their employees, or to let their employees choose a plan that’s right for them. 

A recent report by the Department of Human Services estimated that the exchange would save $150 million in uncompensated care.  Uncompensated care drives up healthcare costs for families and individuals with insurance and for the state.  In 2011, the uncompensated care costs at Hennepin County Medical Center (HCMC) were $30 million.  75% of uncompensated care costs are covered by public funds, including property taxes in Hennepin County, and another 11% of costs are covered by hospitals that must shift that cost onto insured patients.

The operation of the exchange is funded by charging health insurance companies a 3.5 percent surcharge on premiums of the health plans purchased through the exchange. For more information, the text of the bill can be found here.  Please be aware that this is a long and complex bill.

As we address these issues at the Capitol, please feel free to contact me.  My office door in St. Paul is always open, or you can reach me by phone at (651) 296-0173 or by email at rep.jim.davnie@house.mn. You can also follow me on Twitter at @jdavnie and follow the Property Tax Committee at @mnproptaxes

I encourage you to sign up to receive Session Weekly, a nonpartisan publication of Minnesota House of Representatives Public Information Services.  It is no longer available in print but you can sign up to receive the weekly electronic updates here: http://www.house.leg.state.mn.us/hinfo/subscribesw.asp

Thank you for the honor of serving you at the State House.

Sincerely, 


Jim Davnie 
State Representative 
District 63A