Nov 10 Pawlenty Acts; Berglin Whines, Refuses to Enact Important Reforms

This morning, DHS Commissioner Cal Ludeman announced that people currently on GAMC will be automatically transferred to MinnesotaCare. In transitioning people from GAMC to MinnesotaCare, Gov. Pawlenty's administration has laid to rest one of the DFL's accusations, that his unallotments would create thousands of new uninsured people.

Meanwhile, Sen. Linda Berglin is already whining about the Pawlenty administration's decision:

Sen. Linda Berglin, DFL-Minneapolis, who chairs the Health and Human Services Budget Committee, said MinnesotaCare is already stretched because the economy has resulted in a surge of new enrollees. Add the General Assistance enrollees and the program is likely to run out of funding in 2011 instead of 2012, she said.

Sen. Berglin acts as though the only choice is to raise taxes and refill the account from which MinnesotaCare is paid out of. Sen. Berglin knows that that isn't the only option because she's been briefed on Rep. Steve Gottwalt's Healthy Minnesota Plan, which would save tens of millions of dollars if implemented.

This is why we need a new majority party in the legislature. Reps. Tom Huntley and Paul Thissen have both been impressed with Rep. Gottwalt's plan. According to the committee minutes for March 25, Rep. Gottwalt's bill passed. In fact, the bill passed unanimously:

REP. GOTTWALT'S HEALTH CARE REFORM INITIATIVE UNANIMOUSLY PASSES COMMITTEE

ST. PAUL - State Rep. Steve Gottwalt, R-St. Cloud, today presented a health care reform bill (HF1865) that would improve how Minnesota provides health care coverage to low-income adults, while saving the state an estimated $100 million per year.

Gottwalt presented the Healthy Minnesota Plan (HMP) to the Health Care and Human Services Policy and Oversight Committee, which unanimously approved the bill, moving it on to the Health and Human Services Finance Division.

The HMP would cover 84,000 Minnesota adults currently on MinnesotaCare with a more generous private market benefit package, and a deductible covered mostly by the state. The plan would pay providers market rates for the health care they deliver, eliminating cost-shifting, and opening more health care access to those enrolled in the plan.

The HMP would save state administrative costs, provide greater flexibility for the enrollee, tap into savings of large private insurance pools, and fit well with other health care reform initiatives. Gottwalt described the bill as a "demonstration project that will improve care for 84,000 Minnesotans, and save the state about $200 million in the coming biennium."

"The plan benefits consumers, providers and the state," Gottwalt said. "Even if Minnesota were not facing a huge budget deficit, we need to explore better ways of covering more Minnesotans in a manner that is financially sustainable and engages consumers more directly. The private market can deliver better access to high quality, cost-effective health care."

Gottwalt said Minnesota currently spends about $7,000 per year for every adult enrollee on MinnesotaCare. He said conservative estimates show the HMP will save the state more than $1,000 per adult enrollee, or about $100 million per year ($200 million per biennium).

"The savings actually grow over time," Gottwalt said. "We think this approach could be used to provide coverage to other public enrollees, saving even more." Given the current state budget deficit, this is seen as a sustainable way to provide coverage to people in need while saving the state significant money.

Gottwalt said the HMP generates state savings several ways, starting with tapping into larger, private insurance pools to capitalize on more efficient administrative, education and enrollee services now provided by the state.

Also, the cost to the state for covering most of the deductible under the HMP is based on actual expenditures, not a per-member-per-month capitation payment. The Healthy Minnesota Plan Account (structured as a Health Reimbursement Account or HRA) requires the state to maintain a reserve, but not full funding up front. HF1865 does not include copays, but it is structured to be flexible in addressing cost sharing issues.

The HMP offers an even greater level of benefits than currently available under MinnesotaCare, including dental, vision and pregnancy coverages. The plan provides first-dollar coverage of primary and preventive care, all the covered benefits of MinnesotaCare, and a $5 million lifetime maximum (much stronger than MinnesotaCare's $10,000 inpatient maximum).

"Instead of being denied access to care by providers who do not get paid enough from existing Minnesota public programs, these enrollees will now be considered on par with other privately insured people," Gottwalt said. "Also, these enrollees will have a debit card with which to pay eligible expenses within the deductible. No more being shunned for lack of a cash co-payment or deductible payment. And, unlike
MinnesotaCare, the Healthy Minnesota Plan major medical coverage is completely portable; it belongs to the enrollee."

According to the meeting's minutes, here are the DFL legislators who voted for HF1865:

Paul Thissen, Tina Liebling, Julie Bunn, Patti Fritz, Paul Gardner, Jeff Hayden, Tom Huntley, Carolyn Laine, Diane Loeffler, Erin Murphy, Kim Norton, Maria Ruud and Cy Thao

It's time that people asked Sen. Berglin why she hasn't scheduled a hearing on Rep. Gottwalt's legislation. For that matter, why didn't the Health Care and Human Services Finance Division didn't give Rep. Gottwalt's bill a hearing and an up-or-down vote.

The Health Care Access Fund is quickly drying up, which means that people are kicked off the state plan as required by state law when health care programs run out of money. Sen. Berglin is insisting that we raise taxes so they can keep doing things the same way.

For Minnesota's taxpayers, I demand to know why Sen. Berglin refuses to reform this important programs and save Minnesota's taxpayers millions of dollars annually.

Based on her obstructionism, it's accurate to say that Sen. Berglin needs a lesson in 'You Work For Us' public service. If she continues resisting money-saving reforms on one of the state's biggest ticket items, then we have the right to ask why.

It's equally clear that Sen. Berglin needs her status changed from Chairlady to Ranking Member starting in 2011. Minnesota simply can't afford Sen. Berlin's obstructionism and pig-headedness. It's costing Minnesota taxpayers millions and millions of dollars. It's providing an inferior product.

It's time we dragged Sen. Berglin kicking and screaming into the 21st Century. We don't work for her. She works for us. If she won't do what's best for Minnesota, then we'll find someone who will. We can't 2 more years of status quo 'leadership' because it's too expensive.

It's time to change from a one-size-fits-all leadership to an innovative, reform-minded leadership. Sen. Berglin, unfortunately, represents the expensive status quo DFL leadership. What we need is the type of reform-minded leadership that Rep. Gottwalt embodies.

To do otherwise is foolish and expensive.

Comments welcome at LFR.