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House passes $315 million health insurance relief package

Rep. Joe Hoppe, chair of the House Commerce and Regulatory Reform Committee, introduces SF1, which would provide a temporary program to help pay for health insurance premiums, during debate on the House Floor Jan. 19. Photo by Paul Battaglia
Rep. Joe Hoppe, chair of the House Commerce and Regulatory Reform Committee, introduces SF1, which would provide a temporary program to help pay for health insurance premiums, during debate on the House Floor Jan. 19. Photo by Paul Battaglia

A $300 million insurance premium relief package passed the House Thursday, despite Democrats’ objections over process and a key provision that would reform the state-run individual marketplace.

The House’s version of the bill is different than what the Senate approved last week — and it’s a version Gov. Mark Dayton has voiced concerns over. Instead of heading to the other chamber or to the governor’s desk, the bill, SF1, as amended to include HF1 language, will likely move to a conference committee, where it will receive additional, finalized input from members of both chambers.

House Speaker Kurt Daudt (R-Crown) said he’s aiming for “next Thursday” to have the bill to Dayton.

Passed on a 73-54 vote, the Republican-sponsored bill provides qualifying residents with a 25 percent insurance premium rebate, administered through a Minnesota Management and Budget-established application system. Under the GOP plan, the state would dole out $300 million, plus an additional $15 million to insurance providers for continuing care to certain patients.

The legislation also allows for-profit HMOs to enter Minnesota’s individual marketplace, a reform DFLers, including Dayton, have opposed. The DFL unsuccessfully attempted, as they did during the committee process, to replace the Republican plan with the governor’s plan.

“Minnesota families facing steep premium increases in the individual market need help now, not later,” House Minority Leader Melissa Hortman (DFL-Brooklyn Park) said. “That’s why Democrats support the Governor’s proposal to provide relief to Minnesotans quickly.

Rep. Joe Hoppe and House Majority Leader Joyce Peppin, right, discuss SF1 during a news conference before the House Floor vote Jan. 19. Photo by Paul Battaglia

“Unfortunately, Speaker Daudt and Republicans are delaying relief to Minnesotans by taking something Minnesotans need badly and making it political. We should do the right thing today and come together to pass immediate premium relief to Minnesotans now, and work on thoughtful long-term reforms to stabilize the market as session moves forward,” she added.

Unlike the Senate’s version, the House left out a $150 million state-run reinsurance program. The House did, however, include changes proponents believe will aid rural Minnesotans, like laying the groundwork for an agricultural cooperative health plan and allowing hospitals and clinics dropped from networks to file appeals against providers.

“There’s a fear of the individual market collapsing,” Rep. Tim Miller (R-Prinsburg) said. “I can tell you that in Greater Minnesota, it’s collapsed.”

The beefed-up package also allows health companies to opt out of offering plans required by the federal Affordable Care Act or mandated through state law.

“The reforms that are in this bill are good,” Daudt said during an afternoon news conference. “They will help Minnesotans right now. And that’s why we have fought so hard to make sure that we’re keeping these reforms in the bill.”

The Dayton administration has said the Republican plan will cost an additional $20 million to launch the system required by the bill.

“I personally don’t believe that,” Rep. Jim Knoblach (R-St. Cloud) said. In response to that claim, Knoblach offered an amendment allowing MMB to use already-appropriated funds to pay for administrative costs.

“I think what you’re doing is you’re creating a really reckless situation here in Minnesota,” Rep. Debra Hilstrom (DFL-Brooklyn Center) said. “And I think Minnesotans deserve relief immediately… You’re not dealing with this as if it’s a crisis.”


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