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Lines drawn for health care debate
by Tom Scheck, Minnesota Public Radio
April 20, 2005

Republican Rep. Fran Bradley of Rochester, says cutting access to MinnesotaCare is the best option available for those who want to hold the line on tax increases. (MPR Photo/Tom Scheck)

Supporters of a health care spending bill at the Legislature are praising the bill's author for keeping health care costs low while increasing funds for the disabled and the elderly. But critics described the bill as shortsighted. They said the 30,000 people who would lose coverage under the bill will still need treatment.

St. Paul, Minn. — Representatives of the disabled and elderly were among those testifying in support of the 328-page bill. Nursing homes, long-term-care facilities and home-health-care agencies would receive an annual two-percent increase in the bill.

John Hustad, with the Minnesota Health and Housing Alliance, says he's pleased House Republicans increased funding for long-term-care facilities, especially since Gov. Pawlenty's budget left their funding flat.

"There's a sigh of relief and thanks across Minnesota among long-term-care providers that you were able to meet that challenge and meet that commitment," he said.

Organizations who voice opposition to tax increases are also backing the bill. Carolyn Jones, with the Minnesota Chamber of Commerce, says Minnesota spends too much on subsidized health insurance programs. The House Republican plan cuts 30,000 people off of MinnesotaCare, a state-subsidized health insurance program for the working poor.

"We simply have to get a handle on these costs," Jones said. "While there are choices in this bill that are very difficult to make, I want to compliment you on beginning to lay the foundation for what I hope will lead to lower trend growth in health care."

The bill would also cut payments to hospitals and require others enrolled in state health programs to pay higher out-of-pocket costs. The cutbacks have upset many groups who represent the low income and the working poor.

Several people at the committee were wearing yellow stickers which said "Minnesota is watching." They represent labor organizations, non-profit groups and religious institutions who oppose any more cuts to state government.

Stillwater resident Margaret Boettcher says she's concerned that cuts to MinnesotaCare will affect her bottom line.

"If these 30,000 people are taken off of MinnesotaCare, my rates will go up because they will become sicker, they will end up in emergency rooms and that cost will be passed on the private sector. I'm the private sector," she said.

Hospital administrators are also not happy with the bill. Jason Douglas, the administrator for Sibley Medical Center and Clinics in Arlington, is concerned that House Republicans and Gov. Pawlenty both want to remove adults without children from MinnesotaCare. Those people would be eligible for another state health program but would have to spend a significant amount of their income on health care costs to be eligible. Douglas called the move shortsighted.

"Taking away MinnesotaCare coverage leaves them with the unattractive option of spending down their assets until they qualify for other programs," he said. "This bill will encourage people to move into instead of out of poverty."

Others said they're unhappy that House Republicans proposed deeper cuts to MinnesotaCare than Gov. Pawlenty. Pawlenty's plan would cause 27,000 people to lose their health insurance. But the bill's chief author, Republican Rep. Fran Bradley of Rochester, says it's the best option available for those who want to hold the line on tax increases.

"I can't kid anybody, I don't have a magic money tree. For those who say don't do this, don't do that, give me an alternative. I don't have that," Bradley said.

Several DFLers on the committee are offering alternatives. One of their options would cut outside consulting contracts for the Minnesota Department of Human Services.

DFL Rep. Paul Thissen of Minneapolis says House Republicans are also operating under the false illusion that they can't raise taxes to meet current budget demands.

"Everybody so far has talked about that these decisions are being forced upon us, that these cuts of all of these people off of health are being forced upon us. That's not really true, and I think we need to get that out on the table. We did have other choices, we're just not allowed to talk about it," Thissen said.

Members of the committee can offer their alternatives at the next hearing. Rep. Bradley says he'd like the committee to vote on the bill on Thursday.