ST. PAUL, MN – The Minnesota House of Representatives approved the Omnibus Health and Human Services (HHS) bill on Monday night by a vote of 70-64.
The bill reduces the HHS budget by $150 million over two years through targeted cuts, reforms, and re-prioritization within the budget. DFLers achieved important savings while protecting the most vulnerable Minnesotans.
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.
“Nursing homes in northern Minnesota were hit hard when the Republican-controlled legislature cut over $1 billion from the HHS budget last session,” said Rep. Carly Melin (DFL—Hibbing). “Unlike the GOP, we chose to take a compassionate approach by protecting seniors and disabled Minnesotans.”
The House HHS bill achieves cost savings in several ways, including an estimated $68 million through managed care payment reforms. Recognizing that Minnesota hospitals are expected to see a nearly $1 billion increase in funding over the next four years due to federal health care reform, the bill generates $105 million in savings for the state with increased hospital surcharges. The bill also includes targeted reductions to existing programs and reforms of services in areas like dental and prescription drugs. The bill recognizes savings from budget decisions elsewhere, such as the fact that funding all-day Kindergarten reduces the number of children on welfare requiring child care.
Despite the $150 million in reductions in the bill, nursing homes and long-term care givers will receive their first funding increase in over four years. 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. In addition, lawmakers unanimously passed an amendment that reduces the existing nursing home surcharge (often called the “granny tax”) by $440 per bed.
“The cost-of-living increase in our bill is a step in the right direction when it comes to treating long-term care workers with the dignity and respect they deserve,” said Rep. Melin. “These individuals have a very difficult job. As more baby boomers begin retiring, we need to make sure this vital part of our workforce has more economic security and a stable livelihood.”
The bill also funds cost-preventive mental health initiatives for adults and children, such as fully-funding the Governor’s request for expanding school-based mental health services and mental health crisis response services.
“I’m glad we’re taking steps to provide more support for Minnesotans struggling with mental illness,” said Rep. Melin. “It’s an area that’s been neglected for far too long. When we help these individuals early on by prioritizing prevention, we can save money down the road.”
The House HHS omnibus bill will go to a conference committee with the Senate’s version of the bill. Differences between the two pieces of legislation will be ironed out and receive a final vote from each chamber before a final budget goes to Governor Dayton’s desk.