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Senate votes to lift limit on MinnesotaCare
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Sen. Linda Berglin's bill would eliminate the $5,000 cap, and cover diabetic equipment and services such as physical therapy and visits to a psychologist. (MPR file photo)
The Minnesota Senate has voted to lift a cap on state-subsdized health care benefits for some low-income Minnesotans. Currently, MinnesotaCare health coverage is limited to $5,000 for adults who have no children. Opponents of the bill say the state needs to trim health care costs, rather than expanding benefits.

St. Paul, Minn. — During the budget cuts of two years ago, lawmakers limited MinnesotaCare benefits for adults without children. About 19,000 Minnesotans are affected by the limit, and more than 2,000 of them reached the $5,000 ceiling last year.

Sen. Linda Berglin, DFL-Minneapolis, says the cap prevents low-income people with diabetes and other illnesses from getting necessary care.

"We're talking about people making 9, 10, $11,000 a year. So we're not talking about people that can just go out and buy these things that aren't covered under MinnesotaCare out of their own pocket," she said.

Berglin's bill would eliminate the $5,000 cap, and cover diabetic equipment and services such as physical therapy and visits to a psychologist. It would cost about $50 million over the next two years. The money would come from a projected surplus in the state's health care access fund, which pays for MinnesotaCare.

Sen. Brian LeClair, R-Woodbury, says the legislation doesn't use that money to help the most vulnerable Minnesotans.

"What we're doing in this bill is not helping the elderly, we're not helping the disabled, we're not helping children. The only group we're helping today ... is single adults without children," he said.

LeClair says the Senate should pass health care reform that makes private insurance more affordable for low-income adults, instead of expanding state-subsidized benefits.

"The bill says that the only answer for single adults without children is to hook them up to a government health care program. Welfare health care," he said.

Some lawmakers took issue with LeClair's use of the term "welfare health care", including Republican Paul Koering of Brainerd.

"I know I have a lot of people in my district that are on MinnesotaCare, and I would remind the senator that people that are on MinnesotaCare are paying a premium of what they can afford, so they are participating and they do have their skin in the game," he said.

Koering was one of 49 senators who voted for the bill. Seventeen voted against it. Some of the opponents said they believe education funding should be a higher priority than expanding health care benefits.

DFL Senate Majority Leader Dean Johnson of Willmar says the upcoming Senate budget will fund both.

"You will see a very aggressive education funding package from the Minnesota Senate and the Senate Democrats. You will see an aggressive package in regard to health care," according to Johnson.

Johnson says that budget will be released in the next couple of weeks. He says he doesn't know if that budget will include a tax increase to pay for spending priorities.

Gov. Pawlenty's budget would scale back rising state health care costs by cutting more than 27,000 single adults without children from MinnesotaCare.

The House budget will likely follow Pawlenty's recommendations, according to Republican Fran Bradley of Rochester, who chairs the House Health Policy and Finance Committee. Bradley says the Legislature shouldn't tap the health care access fund to expand MinnesotaCare benefits.

"That's a one-time surplus, and given that, then what are you going to do two years from now?" Bradley asked.

Bradley says given the state's current budget constraints, he doesn't support lifting the benefit cap. Minnesota faces a projected $466 million deficit in the next two-year budget cycle.

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