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A Mayo health perspective

Published (2/4/2011)
By Patty Ostberg
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Minnesota could create a single statewide health care exchange to help control increasing health care costs for all Minnesotans, according Dr. Douglas Wood, cardiologist and vice chairman of Mayo Clinic’s health care policy and research.

Wood presented Feb. 2 to the House Health and Human Services Reform Committee the proposal for an exchange that could be publicly and privately shared, and would consist of individually owned insurance not dependent on an employer and that would handle all enrollment and eligibility for Medicaid and other public programs.

He said health care spending is growing faster than the economy can support and patients aren’t getting value for what they spend on health care. “The costs of family coverage have more than doubled since 2006.”

Another issue is that government reimburses for certain procedures, rather than using a less costly method. Under current Medicaid reimbursement rates, Wood said, as a cardiologist, he is reimbursed a greater amount for bypass surgery rather than a regiment of prescription medication for a patient. The federal government “makes rationing decisions every day,” but the key to reform is making rational health decisions instead, he said.

The advantages of an exchange could include affordable insurance for families, predictable costs for businesses and state government and plans could concentrate on developing long-range relationships and delivery systems that produce better results at a lower cost, Wood said. Additionally, provider reimbursement rates could be based on whether a physician shared medical options with a patient.

Rep. Jim Abeler (R-Anoka) said the proposal is something that he could support.

The proposal has “principles we can all agree on,” said Rep. Larry Hosch (DFL-St. Joseph). He hopes the committee can come up with a proposal before the end of session.

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