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Legislative News and Views - Rep. Bob Vogel (R)

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Don't Raise Our Healthcare Costs

Friday, January 18, 2019

Friends, 

We've had a busy first couple weeks here at the Capitol. Committees have begun to meet, set their rules, and the first bills are making their way to committee. Below is a quick recap of the biggest issue of the week, and a few other thoughts. Have a great weekend!

Don't Raise Our Healthcare Costs

On Tuesday, Minnesota House Republicans held a press conference urging the new DFL House Majority and Governor Walz not to raise health care costs on Minnesotans by restoring the sick tax—a 2 percent tax levied on most patient services in Minnesota, including things like baby deliveries, chemotherapy treatments, routine doctor visits, emergency room visits, and more. The tax, which was eliminated as part of bipartisan legislation passed by a Republican-controlled legislature and signed into law by Governor Dayton in 2011, is set to expire starting January 1, 2020. In total, restoring the tax would result in a more than $600 million increase on health care costs for Minnesotans next year alone.

Over the past week, Governor Walz called it a "nonstarter" to end the tax, and DFL House HHS Finance Chair Tina Liebling said it was "essential" to restore the tax or replace its revenue. I realize, just like everyone else, that health care is one of the most serious issues facing us as a state and nation.  However as I talk with people about their personal finances, especially those on a fixed retirement income, increased taxes is not something they can afford.  I know the solution will be difficult, and we will need much discussion on how to address it, but don't believe we should start the conversation by raising the end user price of health care more than it already is with another tax.

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One of the things we can do to help those in need is by bringing more efficiency to our systems and process. Last year, numbers from the Minnesota Department of Human Services (DHS) Budget Director indicated that Minnesota is losing tens of millions of dollars per month by failing to implement periodic data matching (PDM), which helps verify program eligibility for Minnesota public programs. DHS has acknowledged that fraud within the childcare assistance program is a "big problem," costing the state tens of millions of dollars, and the non-partisan legislative auditor has released multiple reports detailing hundreds of millions in public program benefits going to recipients who are not eligible. I'm hopeful as we start the new session we can find ways to work through some of the IT issues to address things like this because the savings are significant, and with built-in budget increases in the HHS budget finding good and decent ways to reduce costs will make a significant difference in overall spending.


Committees Getting Started 

This was the first full week of committee hearings and floor sessions. One of my committee assignments is the Ways and Means Committee, which this year has taken on added importance because of rules changes so I will be busy there, as well as with my other 3 committees. I'm also looking back through the legislation that I have authored in previous years which did not get enacted to determine if there might be a path to have it happen.


Please Stay in Touch 

Please continue to stay in touch to share your thoughts and ideas on issues important to you. You can schedule a time to meet with me in my office anytime by calling (651) 296-7065 or share your thoughts via email by emailing me at rep.bob.vogel@house.mn.

Have a great weekend,

Bob