Minnesota House of Representatives


State Representative Erin Murphy

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100 Rev. Dr. Martin Luther King Jr. Blvd.

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Posted: 2011-05-13 00:00:00
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On 2 Year Anniversary of GAMC veto, GOP reprises health care cuts for Minnesotans

Saint Paul, Minnesota – Two years to the date of Governor Pawlenty’s veto of General Assistance Medical Care for 35,000 poor and sick Minnesotans, Republicans released their proposal to cut health coverage for 200,000 Minnesotans. This revelation came as House and Senate conference committee released their plan to cut $1.8 billion (state funds) and $3.67 billion (state and federal combined) from the health care budget.

"This is not reform, this is a gutting of our health care system that will impact Minnesotans across the state," said State Rep. Erin Murphy (DFL – St. Paul). “The depth of this cut jeopardizes the health of sick Minnesotans, the financial health of hospitals and clinics, as well as jobs across the state.”

Almost $1 billion of that comes from the elimination of Medicaid eligibility for Minnesotans newly enrolled in March when Governor Dayton signed the early Medicaid executive order in January. 150,000 Minnesotans would be shifted to a reinstated Coordinated Care Delivery System (CCDS) and providers would earn about $930.00 a year to care for an individual enrolled.

"We ought not pretend this is coverage for an individual or payment for a provider- it is neither," said Murphy. "My republican colleagues are determined to cut sick Minnesotans from necessary care. It's bizarre and shortsighted – especially when you consider they would rather punish seniors and the disabled while protecting corporations and CEO’s.”

The journey since the GAMC veto has been a protracted policy battle to provide care for a vulnerable population in a way that doesn’t shift costs and harm patients or providers. The triaged GAMC program that was only used by 4 metro hospitals proved to be severely underfunded and unworkable.

"We learned the promise of care coordination for the very sickest Minnesotans in the CCDS model, but as now proposed, enrollees will be shut out of the system," said Murphy.

Murphy said cutting coverage for 200,000 Minnesotans will shift higher costs onto Minnesota families.

“The steep increase in the uninsured and steep reduction in provider payments will result in higher health care premiums as uncompensated care costs are absorbed,” said Murphy. “This is a hidden tax increase on every Minnesotan with health insurance. Dipping into the pockets of nearly every Minnesotan through higher health care premiums is the wrong choice for our budget and the wrong choice for a stronger economic future.”


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