Rising health costs pressure benefits

Published 12:00 am Monday, January 3, 2005

ST. PAUL (AP) &045; Fast-rising government health costs are the No. 1 target for Minnesota legislators confronted with a budget deficit of at least $700 million.

Sitting in the bull’s-eye are childless, low-income adults who get benefits here that they wouldn’t get in many other states. Gov. Tim Pawlenty and House Republicans are eyeing all public programs for cuts, but say they’re focusing on those not provided elsewhere.

&uot;Our government welfare programs that provide health care to people in need are growing so fast that it’s going to suffocate the rest of the state’s budget,&uot; Pawlenty said. &uot;We’re on a trajectory in Minnesota to be bankrupt over these issues in less than 15 years.&uot;

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In the nation’s healthiest state, more Minnesotans are signing up for government-funded health programs as employers drop coverage and job growth lags the national average. Spending on health care for the neediest Minnesotans is expected to jump 37 percent in the next two-year budget period.

Republican proposals to cut government health care will run into opposition from Sen. Linda Berglin, DFL-Minneapolis, who heads the Senate Health and Human Services Budget Committee.

She blames earlier cuts to state programs &045; including trimming the higher end of income levels eligible for MinnesotaCare, limiting outpatient benefits to some members and requiring Medical Assistance co-payments for doctor visits and prescription drugs &045; for contributing to spiraling health costs.

&uot;Every time we cut people off and hurt more uninsured people, we are driving up health care costs because more people end up in hospital emergency rooms with uncompensated health care services,&uot; Berglin said. &uot;It’s like deciding you can’t afford to change the oil in your car. Pretty soon you’ve got to put a new motor in.&uot;

This session, Berglin plans to try again to restore the MinnesotaCare and Medical Assistance cuts and to open MinnesotaCare to employees of small businesses who don’t have health insurance. Most uninsured Minnesotans work for companies of 50 employees or less, she said.