The House Health & Human Services Finance Committee this week approved an overall health care and human services bill that targets high health care costs while extending protections to vulnerable populations including the elderly and disabled. The legislation we are working on in the House is a major step toward tackling the problem of rising costs. The House bill contains some significant reforms that reduce mandates that have been driving up costs for everyone and it includes incentives to spur more competition in the health care market. The cost-containment package reduces mandates that require insurers to pay for certain procedures (Minnesota is the third highest in the nation in such mandates), creates a pilot program for small businesses to give them flexibility in choosing affordable health insurance for their employees, and allows for-profit health insurance plans to compete in Minnesota. The House also diverged from the governor’s proposed budget on several issues. One of the biggest key changes is that our health and human services legislation protects funding for nursing homes, programs for the developmentally disabled, and reimbursements for Minnesota pharmacists. The bill calls for no rate reductions in nursing home reimbursement rates as was proposed by the governor, and it includes $1.7 million in relief to help nursing homes pay the higher costs of liability insurance. It also gives nursing homes more relief from overly intrusive and unnecessary inspections from the state Department of Health. The rate funding for programs for the developmentally disabled is not reduced, and the bill maintains the reimbursement-rate local pharmacists receive from the state for government funded health care insurance programs. The bill also reduces licensing fees for child care facilities throughout the state. Another significant aspect of the bill is a provision that reduces the amount the developmentally disabled must pay for services. Last session, as part of the budget fix, the parental fees for care of developmentally disabled children were raised. People on the low end of the income scale didn’t see much of an increase because they pay as little as $4 for their co-pay share. But people in the middle income and higher income levels were hit hard by the increases. So, this year the House bill reduces the total amount of fees required in aggregate by 25 percent, with the reductions in co-pays aimed at the middle income families. The full bill will likely be presented for a vote on the House floor next week.
