Work begins to confer health insurance relief package

The committee tasked with negotiating two different versions of a health insurance premium relief and reform package began its work Tuesday morning by combing through details and hearing concerns, including those of the governor’s administration.

The 10-member conference committee, which includes eight Republicans and two DFLers, is assessing SF1 and HF1, the two Republican-sponsored bills that would give qualifying Minnesotans a 25 percent insurance premium rebate and provide continuing care, along with reforms like allowing for-profit HMOs enter into the individual insurance marketplace. While the two bills have many similarities, there are major differences – from spending amounts to larger reforms like reinsurance – that need ironing out.

The bills are sponsored by Rep. Joe Hoppe (R-Chaska) and Sen. Michelle Benson (R-Ham Lake).

After a morning overview, the committee plans to reconvene Tuesday afternoon to hear from Minnesota Management and Budget Commissioner Myron Frans, and to provide amendments.

House Speaker Kurt Daudt (R-Crown) said last week he wants to pass a bill by Thursday to send to Gov. Mark Dayton.

The Dayton administration contends that while certain reforms are needed, there will be additional consequences for the way the legislation is currently designed. Commerce Commissioner Mike Rothman raised issues with how the bills address stop-loss protections for small businesses.

“We believe it may create instability in the small group market at a moment when we’re trying to stabilize the individual market,” Rothman said.

While the $315 million House version, which was passed 73-54 last week, doesn’t include a reinsurance program – there’s a separate piece of legislation for that (HF5) – the Senate’s does. Under SF1, the $150 million reinsurance program would be administered by the Minnesota Comprehensive Health Association and its parameters for coverage would be annually adjusted.

“We’re seeing that the individual market is shrinking, not expanding,” Rothman said. “… (The reinsurance program) is unlikely to be sufficient enough or adequate enough to get the job done in the way we’d like to see.”

Deputy Health Commissioner Daniel Pollock told the committee a change Rep. Dan Fabian (R-Roseau) added on the House Floor was worth revisiting. Fabian’s amendment would allow hospitals and clinics to appeal to an administrative law judge if a health insurance provider kept them out of their network. The concern, Fabian said, was rural patients are being forced to drive past their hometown hospitals, some more than 100 miles, to receive care.

Pollock said appealing to a law judge, as opposed to the department, would take more time and wouldn’t help the patients. Fabian countered, likening it to a child appealing a discipline to a different parent.

“It’s not necessarily about the facility… in Roseau. It’s about the people,” he said.