MMA News
MMA Sets Legislative Priorities
Lawmakers returned to the Capitol on February 4 facing a $1.2 billion budget deficit for the remaining 18 months of the 2010-11 biennium. As they look for ways to close the gap, it’s clear that health care spending once again will be on the table. The MMA will urge lawmakers and the governor to take a balanced approach to eliminating the shortfall—one that includes finding new revenues and cutting programs other than health care. In addition, the MMA will work to preserve the integrity of the Health Care Access Fund and refine provisions in Minnesota’s 2008 health care reform legislation.
Here are the MMA’s legislative priorities for the upcoming session.
Prevent Additional Health Care Cuts
A $1.2 billion state budget deficit means that again there will be pressure to cut spending on health care programs. Health and human services programs have accounted for nearly two-thirds of budget cuts totaling more than $3.3 billion during the last three biennia. The MMA believes health care cannot continue to shoulder the burden and supports balancing the budget through a combination of cutting existing spending and generating new revenues through such measures as increased alcohol and tobacco taxes.
Restore Coverage for GAMC Enrollees
The MMA is advocating for a long-term solution for covering the 32,000 Minnesotans enrolled in General Assistance Medical Care (GAMC) in any given month. This program covers adults without children earning less than $7,800 per year. About 70 percent of these Minnesotans suffer from mental illness, and about one-third are homeless. The MMA would like to see a solution that does not result in steep reimbursement cuts, which DFL lawmakers have proposed, and does not shift GAMC enrollees to MinnesotaCare, which has been proposed by Gov. Tim Pawlenty. MMA leaders believe MinnesotaCare will not meet the special needs of this population, as it requires them to pay monthly premiums and has a $10,000 annual cap on hospitalization coverage. Transferring this population to MinnesotaCare would also bankrupt the Health Care Access Fund, which helps pay for the program, by July 2011.
Seek Fair Safety-Net Payments
The MMA is urging lawmakers to honestly address the cost of caring for patients enrolled in public health insurance programs such as MinnesotaCare and Medical Assistance. Current payments are based on 1989 median charges and no longer cover the cost of care. Physicians have received an across-the-board increase only once in the last 17 years—a 3 percent raise in 2000. This past year, lawmakers cut reimbursements for nonprimary care providers by 6.5 percent. The MMA believes the Legislature must find the means to update payment rates for physicians if the state wants to maintain access to care through these programs. The MMA is letting lawmakers know that a key part of preserving the safety net is ensuring clinics are reimbursed enough to stay open.
Improve Minnesota’s Peer Grouping Project
The MMA is pushing lawmakers to extend the current timeline for implementing a peer-grouping system. Peer grouping will allow consumers and health plans to compare the cost and quality of care provided at Minnesota’s hospitals and clinics. The state is currently creating a database containing information about physician and hospital costs and utilization rates. The MMA believes the current timeline does not allow for making sure the data are valid and useful. It also does not allow providers to modify practice behaviors before the data becomes public. The MMA will urge lawmakers to shift the project’s focus to quality improvement and to give providers at least a year to review the data before it is shared with the public.
Prevent a Sick Tax Increase
Lawmakers are likely to once again consider increasing the 2 percent provider tax, which supports the Health Care Access Fund. The MMA continues to strongly oppose any increase in this tax that puts more financial pressure on providers and increases health care costs.
Preserve the Health Care Access Fund
The MMA is working to prevent use of money in the Health Care Access Fund to balance the budget. The state has a history of using money from the access fund to cover deficits. This practice places the MinnesotaCare subsidized insurance program, which is supported by the fund, in financial jeopardy. The MMA is working to ensure appropriate use of Health Care Access Fund dollars.
Federal Dollars May Help Save GAMC
In January, lawmakers were considering a provision in the federal health care reform bill that, if passed, could funnel hundreds of millions of dollars to Minnesota and help save its General Assistance Medical Care (GAMC) program.
At press time, Senate and House negotiators were nearing an agreement to adopt a Senate proposal that would allow states, including Minnesota, to receive federal matching dollars as early as April 1, 2010, for state-run programs such as GAMC.
The matching dollars would be available to provide coverage for childless adults who earn up to 133 percent of the federal poverty level. Minnesota currently bears the full cost of covering these individuals. If passed, the provision could result in Minnesota receiving up to $250 million in additional funds.
“We want to thank Minnesota senators Al Franken and Amy Klobuchar for playing a key role in advocating for this provision, which, if passed, would be a huge help to Minnesota’s GAMC problem,” says Dave Renner, the MMA’s director of state and federal legislation.
Go to www.mmaonline.net for the latest health care reform developments.
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Don’t Let Your MMA Membership Lapse
If you haven’t paid your MMA annual dues, now is the time. The January 31 deadline has passed, but you can still renew your membership with the MMA. Please continue your role in making positive changes to health care in Minnesota.
To check on the status of your MMA membership or pay your dues now, contact Charlene Williams at cwilliams@mnmed.org or 612/378-3747. You also can pay your dues online. Go to www.mmaonline.net/dues.