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Legislative News and Views - Rep. Jennifer Schultz (DFL)

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Legislative Update - March 9, 2017

Thursday, March 9, 2017

Dear Neighbors,

Yesterday was International Women’s Day, and we recognized this occasion at the State Capitol. It was extremely empowering to be part of a large gathering celebrating this, with many of us donning the color red, as you can see in the photo below.

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Federal Health Care Changes

This week we saw the first plans from the White House to dismantle the Affordable Care Act and to implement their own plan. As suspected, these actions will dismantle how Minnesota delivers health care to our citizens. The most significant change is to Medicaid, as it would convert the program to a per-capita cap and phase out federal funding for the Medicaid expansion. The proposal would also eliminate federal funding for the MinnesotaCare program.

Subsidies and tax credits in the individual market would benefit high income Minnesotans at the expense of seniors and those with lower incomes. The market itself will become less stable without the mandate and cost-sharing subsidies.

Reinsurance

As we look ahead to any health insurance reforms, it’s important that we move forward in a way that’s sustainable. One hallmark plan of the MN GOP majority’s insurance overhaul is to create a state reinsurance program. This would help insurance companies mitigate risk from consumers with sizable claims. While there is some merit in moving forward with a proposal like this, in this plan, funding for the program would come from the Health Care Access Fund, which funds MinnesotaCare. I find this not only to be a totally inappropriate use of these funds, but one which lacks long-term stability as well. We should not subsidize the profits of insurers who have over $2.5 billion in reserves and $7 billion in assets without assurances of lower premiums.

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Speaking to the Minnesota Medical Group Management Association on Tuesday about my proposal to enact a fee on claims as an alternative to the provider tax.

In the Tax Committee on Wednesday, I proposed an amendment to the bill to make the funding structure more broad, with a fee on claims processed by insurance companies and third party administrators (to avoid the Employee Retirement Income Security Act preemption). While this didn’t more forward, I hope this can be revisited as this bill is refined further.

Preemption

Last week, the Minnesota House passed a bill preempting local governments from passing pro-worker measures such as a higher minimum wage, earned sick and safe time, or paid family leave. In Minneapolis and St. Paul workers have organized to gain earned sick time, and if a community decides to head in this direction, the Legislature should not get in the way. We should be looking at policies that improve economic security for Minnesotans and their families, not making it harder for them to make ends meet. I voted no on this bill because I believe in local control.

Board of Regents

Late last month, during a joint meeting of the House and Senate, we elected four individuals to the University of Minnesota’s Board of Regents. Regrettably, months of work done prior to this point to recruit and recommend candidates to the Legislature with diverse backgrounds and experiences was rejected, and the process made hyperpartisan with the candidates most well connected at the State Capitol earning seats on the board. The result was the election of four white men to oversee operations at our state’s land grant institution of higher education. While these individuals may on their own be qualified for the positions, the students, alumni and faculty at the University deserve a Board of Regents as diverse as they are.

The Minneapolis Star Tribune today highlighted my frustrations with this process, and I will be introducing legislation addressing them.

Town Hall Meeting

With the outstanding turn out at our last Town Hall meeting, Sen. Simonson, Rep. Olson and I thought it would be a good idea to hold another. Mark your calendars for Saturday, April 29 from 10:00 a.m. to noon at the Glensheen Mansion. This will be a great opportunity to share your thoughts as the session will begin the home stretch to adjournment.

Our first deadline for policy bills to be through committee is on Friday, and this week is extremely frantic with frequent committee hearings full of lengthy agendas. As the pace picks up at the Capitol, please continue to reach out with your feedback on the issues important to you.

Sincerely,

Jen Schultz

State Representative