Supporting Successful Health Care Reform in Minnesota

The Minnesota Budget Project supports successful health care reform in Minnesota that results in health care that is affordable for more Minnesotans, supports small employers, works to contain unsustainable cost increases and includes adequate federal funding. Developing a health care exchange in Minnesota that is focused on meeting the needs of the consumer – individuals and small employers – is an essential step in achieving these larger goals.

Issue Overview

In Minnesota, one out of ten people under age 65 are trying to get by without health insurance. And there are many others who have inadequate insurance, relying on catastrophic health care plans that come with high deductibles and offer little in the way of preventive care. The recent recession and the slow economic recovery have only added to the trouble – high levels of unemployment have caused many to lose access to affordable coverage through their employers. The federal Patient Protection and Affordable Care Act (ACA) of 2010 lays out a path to reform the nation’s health care system, reducing the number of uninsured and improving the options available for Minnesotans.

Some elements of the ACA have already taken effect: children can no longer be denied coverage due to a pre-existing condition, most young adults can stay on their parents’ health plan until age 26, insurance plans can no longer place lifetime dollar limits on health care coverage, and preventive services must be provided with no out-of-pocket costs.

However, there are critical decisions Minnesota’s policymakers need to make before the ACA is fully implemented in 2014. One of the most immediate concerns is whether Minnesota will establish a state health insurance exchange. An exchange is an online marketplace where individuals and small employers can shop, compare and purchase health care coverage. Minnesota must have a viable plan for creating an exchange in place by January 2013; otherwise we risk being part of a federally-designed health insurance exchange.

Status

The Minnesota Department of Commerce, the agency responsible for insurance oversight, has appointed a Health Insurance Exchange Task Force to advise the department on the design and development of a state exchange. This task force, which has been moving forward on an aggressive timeline, has been the primary opportunity for the public to shape what an exchange should look like in Minnesota.

A second task force, appointed by Governor Mark Dayton, has been charged with a longer-term objective of delivering a plan to reform how we deliver and pay for health care in Minnesota. The Health Care Reform Task Force is also looking into the important question of defining the minimum level of benefits that health insurance policies will be required to offer in the exchange.

The question of how to structure an exchange in Minnesota is likely to come up during the 2012 Legislative Session, with legislators advancing different alternatives.

Get Involved

Members of the public have the opportunity to observe and contribute to the two task forces that are currently operating.

• The Health Insurance Exchange Advisory Task Force and related working groups are meeting frequently, and members of the public are welcome to attend and usually have the opportunity to offer comments.
• The Health Care Reform Task Force is charged with delivering a plan to reform how we deliver and pay for health care in Minnesota. Members of the public are welcome to attend meetings.

More Information

• Health Insurance Exchange Will Improve Access and Affordability for Many Minnesotans
• Basic Health Plan Offers a Chance to Provide Comprehensive Health Care Coverage for Low-Income Minnesotans
• State Considerations on Adopting Health Reform's 'Basic Health' Option, Center on Budget and Policy Priorities
• Health Reform Minnesota is a website developed by the State of Minnesota to provide information on the implications of the federal Affordable Care Act in our state.
• The Kaiser Family Foundation has a variety of information on health care reform, including more about the benefits of the Affordable Care Act and the implementation of state health insurance exchanges.
• Federal Health Care Reform Brings Changes and Opportunities for the Nonprofit Sector, Minnesota Council of Nonprofits' Nonprofit News, Winter 2012

Staff contact: Christina Wessel, Minnesota Budget Project Deputy Director, 651-757-3065