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State compact bill advances

Published (3/16/2012)
By Sue Hegarty
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States are being asked to join a Healthcare Compact to discuss how to minimize federal influence over state healthcare policies.

HF2339 would allow the state to join other states in requesting that Congress return each state’s Medicaid contributions to be managed as each sees fit. Sponsor and Committee Chairman Rep. Steve Gottwalt (R-St. Cloud) said March 13 that the state could use block grants to redirect the funds without federal strings attached.

The House Health and Human Services Reform Committee approved the bill. It now awaits action by the full House

“We cannot defend the status quo. The current system is not sustainable,” said Dan Tripp, national field director for the Healthcare Compact Alliance. Tripp said the current Medicaid program is on track to become insolvent by 2025.

American Indian and Veterans Affairs programs would not be included in the states’ initiative.

The bill is a “philosophical step” toward state sovereignty and does not specify who would be covered or what benefits would be included, Tripp said.

Rep. Sandra Peterson (DFL-New Hope) said allowing some states to opt out of the federal health care program may serve to “hasten Medicaid’s demise.”

Other states that have joined the compact include Georgia, Oklahoma, Missouri and Texas.

Sen. David Hann (R-Eden Prairie) sponsors SF1933, a companion bill that awaits action by the full Senate.

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