Dear Neighbor,
The House and Senate both this week passed health insurance exchange bills on their respective floors. This is extremely complex legislation. There were too many concerns and unanswered questions for me to support it.
The health insurance exchange stems from the federal healthcare reform legislation – Affordable Health Care Act, aka, Obamacare – which asks each state to set up an internet portal – known as an “exchange” – for the purchase of health insurance. Small businesses with up to 100 employees or those without coverage can purchase health coverage in the exchange.
Minnesotans are concerned about three things in health care insurance – cost, choice and privacy. The legislation which would establish our exchange lacks in all three areas. Even Gov. Mark Dayton called this plan “a big gamble.” This should concern everyone.
PRIVACY
Never in the history of Minnesota has such a large government agency been created with such enormous power. There will be special exemptions that shroud the agency in secrecy limiting transparency, public notice and oversight. A patient’s information could be accessed by both state and federal government employees.
CHOICE
The exchange essentially controls the entire health insurance market resulting limiting your choice of insurance coverage and preventing you from choosing your own doctor. The exchange also establishes a system whereby seven politically appointed board members pick the companies that can sell insurance plans in the market. The board will only be accountable to the governor, having unchecked power, and will have a negative effect your pocketbook, your freedom of choice, and the well-being of your family.
COST
Instead of lowering costs, the exchange would make health care more expensive and less affordable. A “super agency” will have the power to raise a 3.5-percent tax; raise revenue from a variety of sources, including private donations; and build a fund with enormous cash reserves again with little or no oversight. Every premium will be subject to the 3.5 percent tax. Health insurance companies will have no choice but to pass this added cost onto non-exchange health insurance purchasers (i.e., the middle class). HIX has not refuted the fact that insurance premiums will go up – on average 29 percent – in the individual and small market groups.
This is the first of many tax increases that are being brought through the legislative process. There are more transportation taxes are in the works, including a proposed gas tax increase of 10 cents per gallon. This will hit Minnesota families and businesses at a time they cannot afford to absorb higher costs. It concerns me that the wide array of taxes being proposed will stifle our economic growth and cause a significant setback in Minnesota.
Sincerely,
Rep. Jeff Howe