State needs to weigh cuts to health care wisely
Published 9:40 pm Saturday, May 9, 2009
A recent national poll shows that next to the economy, Americans worry about health care the most; I believe this to be true for Minnesotans, as well.
As I visit with residents in our district, they often share with me their concerns about losing their health insurance, or being able to afford the high cost of health care. These worries were driven home by a new report released this week regarding the increasing number of people who live day to day without health insurance. According to the report, only four states have a higher percentage of uninsured citizens than Minnesota.
The Center for American Progress report indicates that the number of uninsured Minnesotans has increased by 20 percent over the last two years, well above the national average of 13 percent.
With this increase, there are now a total of 550,000 Minnesotans who are currently without health insurance — 11 percent of the population.
For working Minnesotans who are not offered insurance through their employer, there is MinnesotaCare — the state insurance plan they can purchase at an affordable rate. Health care professionals support this plan by paying a provider tax into the Health Care Access Fund, or HCAF.
Unfortunately, this fund has been targeted in the past to help fill a general fund state deficit. This year, Gov. Tim Pawlenty is proposing to drain it completely — using the funds to instead help balance the budget, and as a result, dropping 113,000 Minnesotans from MnCare, including 20,000 children. The House plan protects the HCAF and as a result, does not eliminate insurance for any working Minnesotans.
As more people become uninsured, we all pay more for our health care. Hospitals and clinics treat fewer patients, trips to the emergency room are becoming more common, and besides being more expensive, these visits often go unpaid.
Since 2003, uncompensated care has more than doubled — now hitting a record high $601 million. As any business owner knows, these unpaid bills have to be recouped somehow, leading medical facilities to raise their prices.
Again this year, hospitals are being targeted for cuts to help fill our staggering budget shortfall. All three budget proposals on the table include cuts: The House cuts the least, and the governor cuts the most.
In fact, if Pawlenty’s budget is enacted, the Albert Lea Medical Center will lose more than $4 million over the next two years.
This includes indirect cuts, such as eliminating eligibility for MinnesotaCare adults by raiding the 2 percent Health Care Access Fund for non-health related spending, and direct cuts, including a 3 percent reduction in Medical Assistance (MA/Medicaid) payments. It also includes delaying payments and eliminating Medicaid quarterly payments. Cuts to our state Medical Assistance program are especially destructive because that program has a dollar-for-dollar federal match.
I am concerned that in today’s economy and because of previous cuts to hospitals, they do not have the cushion to withstand cuts of this magnitude. If these damaging cuts go forward, we will likely see several hospitals statewide close, and others will eliminate programs and services that Minnesotans depend on.
By comparison, the House budget plan will cut $258,000 from the Albert Lea Medical Center over the next two years — significantly less than the $4 million being proposed by the governor.
It’s clear we need to continue our efforts to reform both our state and national health care system. We have always been fortunate to have world-class medical care in Minnesota, let’s work to keep it that way.
Please continue to contact me with your questions and suggestions. As always, it’s an honor to serve. I can be reached at (651) 296-8216, or by e-mail at rep.robin.brown@house.mn.
Robin Brown, DFL-Moscow Township, is the state representative for District 27A.