Representative Andrew Falk's St. Paul Report

St. Paul, MN – Beginning July 1^st, Minnesota taxpayers will lose close to $1 million every day as a result of Governor Pawlenty’s decision not to enroll thousands of low-income residents in Medicaid, a federal program that’s been around for over 40 years.

A provision in the recently passed federal health care bill gives Minnesota the opportunity to move individuals currently covered by state-funded General Assistance Medical Care (GAMC) and MinnesotaCare to Medicaid. Not only will their coverage improve, reimbursement rates to health care providers will increase, thousands of jobs will be protected, and Minnesota taxpayers will receive $1.4 billion from the federal government.

“For every day the Governor says no, Minnesotans will watch almost $1 million of their hard-earned tax dollars go to other states like Wisconsin or New York,” said Rep. Tom Huntley, Chair of the House Health and Human Services Policy Committee. “We need this federal money to ensure our local hospitals have the resources they qualify for so that costs aren’t simply passed on to other patients and insurance policyholders.”

Huntley said the state is currently spending $1.2 billion over three years to provide health care for about 80,000 Minnesotans who earn less than $8,000 a year using state-only dollars. By enrolling them in Medicaid instead, an additional $188 million state investment will leverage a $1.4 billion federal match.

According to Rep. Andrew Falk, Murdock, because only four metro hospitals could afford to participate in the GAMC compromise required by the Governor, tens of thousands low-income people in rural Minnesota are now without health care coverage.

“As a result of the failed GAMC plan, the health care providers in my district are providing care to Minnesotans on GAMC and receiving no compensation in return,” said Falk. “Once again, Governor Pawlenty is putting his political ambition before the quality health care our citizens need, and the fair reimbursement our hospitals deserve.”

Tyler Healthcare Center, Graceville Health Center, Appleton Hospital, Swift County Hospital and Hendricks Community Hospital will each lose $44,000 over the next three years without the MA option. Johnson Memorial Health Services in Dawson and Ortonville Area Health Services will each lose $88,000.

State Rep. Erin Murphy said that by the year 2014, this MA option will become law with or without Minnesota’s agreement.

“Minnesota is one of 11 states being offered the chance to capture these tax dollars ahead of schedule. This is money Minnesotans have sent to Washington that can be used to reduce health care costs for Minnesotans,” said Murphy. “It also provides us with a window of opportunity to drive market-wide payment reform, the best means of reducing future health care costs for everyone.”

House health care leaders are planning an outstate tour of health care facilities in the coming weeks to examine more closely the impact of the new GAMC program on their facilities and patients, and whether early MA would be a better option. Dates and locations will be announced soon.

“We learned this week that Connecticut, another state with a Republican Governor, will be the first to take advantage of the early MA offer,” said Rep. Paul Thissen, Chair of the Health and Human Services Policy Committee. “As a result of their Governor’s leadership, Connecticut will receive substantial new federal support that can be used to improve the health of its citizens and lower costs.

Minnesotans deserve and should demand the same from Governor Pawlenty.”

Representative Andrew Falk