ST. PAUL, MN – Lawmakers in the Minnesota House of Representatives passed a Health and Human Services (HHS) omnibus budget bill today by a vote of 70 to 64.
The bill saves $150 million over the next two years through targeted cuts, reforms, and re-prioritization within the HHS budget. It protects the most vulnerable Minnesotans, funds long neglected cost-preventative mental health initiatives, and includes the first funding increase for workers in nursing homes and long-term care providers in four years.
“After the Republican-controlled legislature cut about $500 million in HHS funds for our seniors and disabled residents last session, I’m pleased that House DFLers chose to protect the most vulnerable among us,” said Rep. David Bly (DFL—Northfield). “Hubert Humphrey once said that the moral test of government is how that government treats those who are in the dawn of life, the children; those who are in the twilight of life, the elderly; and those who are in the shadows of life, the sick, the needy and the handicapped. This bill passes that test.”
The House HHS bill achieves cost savings in several ways, including an estimated $68 million through managed care payment reforms. It also generates $105 in savings through increased hospital surcharges by recognizing that those hospitals will receive nearly $1 billion in funding increases over the next four years due to the Affordable Care Act. An amendment to the bill that reduces the existing nursing home surcharge (often called the “granny tax”) by $440 per bed passed with unanimous support.
After more than four years without a raise, the House HHS budget provides a 3 percent cost-of-living-adjustment (COLA) increase for nursing homes and a 2 percent increase for long-term care providers.
“I believe this is a step in the right direction, but it doesn’t go far enough,” said Rep. Bly. “I will make a vigorous effort to persuade my colleagues who will sit on the HHS conference committee with the Senate to make adjustments to this bill to meet the needs of long-term term care providers and their workforce.”
Another component of the House HHS bill includes funding for long neglected mental health initiatives for adults and children. The cost-preventative measures include Governor Mark Dayton’s request for expanding school-based mental health services and mental health crisis response services. The cumulative goals of the programs are to increase access to services, cover an improved range of services, and expand early intervention services.
“This is an area that’s been neglected for far too long,” said Rep. Bly. “I’m pleased our bill makes investments to improve access to mental health programs. It’s going to make a positive difference in many people’s lives.”
The House HHS omnibus bill also protects and improves MinnesotaCare for middle class families, expands MA dental services, and invests in proven public health initiatives through the Statewide Health Improvement Program (SHIP).
SHIP is a public-private partnership focused on improving health by reducing key risk factors that contribute to cancer, diabetes, and heart disease. It provides grants to communities to implement evidence-based, community-level comprehensive health improvement initiatives that address poor nutrition, physical inactivity, and tobacco use and exposure. SHIP grant recipients include schools, worksites, and community and health care settings.
“The investments this bill makes in SHIP saves taxpayers money in the long run by focusing on prevention,” added Rep. Bly. “It’s much more cost effective to prevent these kinds of illnesses rather than treat them down the road when a person could be forced to go to an emergency room.”
The House HHS omnibus bill will go to a conference committee once the Minnesota Senate passes their version of the legislation. Differences between the two pieces of legislation will be ironed out before a final package goes to Governor Dayton’s desk.