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By Tom Scheck
Minnesota Public Radio
July 25, 2001
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RealAudio |
Last week's announcement that Allina Health System will split its health plan, Medica, from its hospitals and clinics has some state officials calling for a closer look at the state's health care system. In the early 1990s, the government began encouraging consolidation of health care services. Some observers say it's time to revive that policy discussion.
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"The attorney general's investigation of this particular company raises important questions that have health economics and health policy implications - and they are good questions," says Malcolm. "We just have to be sure that we are continuing to talk about them and think about them in a bigger picture context."
Malcolm says the state has to look at health care consolidation in the state, the lack of competition among health plans and tightening regulations of the industry.
Both Democratic and Republican lawmakers in the House and Senate health committees agree it's time to give health care another look. State Sen. John Hottinger, DFL-Mankato, sits on the Health and Family Security Committee. He says a state-wide task force, similar to one that led to some reforms in the long-term care industry, is a good way to start.
"My suggestion would be that in 2002, the Legislature and the governor, with the attorney general's involvement, focus on health care issues and how we can fix our health care system," says Hottinger.
Hottinger says the task force should examine why health care premiums are rising so rapidly, the best way to fix the marketplace to make it more competitive and how much health plans spend on administrative expenses. An audit by the attorney general's office on Allina's spending practices showed the company spent milliions on golf trips, lobbyists and consultants. Allina has denied any improper spending.
Republican Rep. Fran Bradley, the chairman of the Health and Human Services Policy Committee, says the state has to help build a health care system that makes the consumer more accountable. He says too many consumers get their health insurance from their employers, shielding them from the true cost of prescription drugs and doctor's visits. Bradley says the state should get businesses out of choosing their employees' health insurance. He says companies should provide a lump sum to workers and let them choose their health insurance.
"Our third-party payer market has our consumers virtually disconnected from the cost of health care. If I had my way, I'd almost turn it upside down and let the people get vouchered for their health care and let them go out and be strong purchasers," Bradley says.
But Michael Scandrett of the Minnesota Council of Health Plans says before state officials get involved they need to agree on who's driving the discussion. He says the state's HMOs are often pulled in different directions by the Legislature, audits by the health department, and now - investigations by the attorney general's office.
"I hope the attorney general will get together with lawmakers and regulators and try to reach some agreement among all of them on what our state's policy is going to be around health plan regulation. Because right now, we could find ourselves in a position of conflict between the attorney general's approach and the law - the regulation," says Scandrett.
Attorney General Mike Hatch declined to comment specifically about being involved in the future of the health care system in the state. Spokeswoman Leslie Sandberg says Hatch's office is presently focused on the audit of Allina Health Systems.
"Right now our focus is to stick with this audit, get it completed, get it public, as we promised to the citizens of Minnesota, and we'll go from there," says Sandberg.
Officials for Allina Health System declined to comment for this report.
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