St. Paul, Minnesota – The Minnesota House of Representatives approved the Omnibus Health and Human Services bill on Monday by a 70-64 vote. State Representative John Ward (DFL – Baxter) voted in favor of the bill. The bill reduces the HHS budget by $150 million over two years through targeted cuts, reforms, and re-prioritization while still protecting the poor and vulnerable.
Despite the $150 million reduction, the bill provides a 3 percent cost-of-living increase for nursing home providers and a 2 percent cost-of-living increase for long-term care providers.
“After four years of no wage increases, this bill is a step in the right direction for our nursing homes and long-term care workers,” said Rep. Ward. “It’s a night and day difference from the budget under the previous legislature that cut $500 million from seniors and the disabled.”
The House HHS bill achieves cost savings in several ways. It finds $66 million through managed care payment reforms. It makes about $93 million in targeted reductions to existing programs and reforms of services in areas like dental and prescription drugs.
The bill also recognizes savings from budget decisions made in other areas of the budget. For instance, by fully funding All-Day Kindergarten, the state will reduce the number of children on welfare requiring child care.
The bill funds cost-preventing mental health initiatives for children and adults, helps low-income families and children and improves Minnesota’s public health and health care programs.
In addition, the bill continues implementation of federal health reform, including a modernizing of MinnesotaCare through the Basic Health Plan, a major opportunity to assert more state-based control over federal health care dollars.
Rep. Ward also authored an amendment requiring licensure and inspections for facilities that perform ten or more abortions per month. The license can be revoked or suspended if the facility commits any illegal act or conduct detrimental to the welfare of the patient. The amendment was adopted and included in the bill.
Recognizing that Minnesota hospitals are expected to see a nearly $1 billion increase in funding over the next four years, the bill includes about $100 million in hospital surcharges. The surcharge allows for a strategic modification of hospital funding in Minnesota, including new incentive payments for every hospital that makes it a priority to serve more “safety net” clients. Even after the surcharge is implemented, Minnesota hospitals statewide are expected to see a four-year, $800 million increase in state and federal funds due to the implementation of federal health care reform.
“While we are attempting to slow the growth in HHS spending, this bill sets the right priorities: protecting our seniors, nursing homes, and most vulnerable,” said Rep. Ward. “Any cuts are difficult, but this bill handles it in the least harmful way possible. As the bill heads to conference committee, I will continue advocating for our seniors, nursing homes and vulnerable.”