House leaders opt against raiding health care funds
MINNEAPOLIS, March 25, 2008 - House DFL leaders put forward a proposal Monday that if passed would not raid the Health Care Access Fund (HCAF) to balance the budget.
The DFL proposal stands in sharp contrast to Gov. Tim Pawlenty’s plan to take nearly $400 million from the HCAF during the next three years to shore up the state’s general fund, which is facing a $935 million deficit.
The DFL budget bill H.F. 3976 authored by Rep. Thomas Huntley, DFL-Duluth, rejects the governor’s proposal to transfer $250 million from the HCAF fund and to shift $48 million of spending a year for three years to the HCAF that is currently paid for from the general fund.
DFLer’s would take $19 million of HCAF dollars to fund qualified health centers, the critical access dental program, and medical education. These expenditures currently come from the general fund
“We’re glad to see that the House leadership is hearing the message that it is inappropriate to use the Health Care Access Fund to balance the budget,” said Dave Renner, the MMA’s director of state and federal legislation. “As this moves forward, we will need physicians to keep telling lawmakers that it is not acceptable for them to balance the budget with money that they promised would be used to improve access to health care.”
Nearly 400 physicians have sent letters to lawmakers telling them not to use HCAF dollars to balance the budget in response to an MMA Action Alert sent to members earlier this month.
Overall, the DFL proposal is much less reliant than Pawlenty’s on cutting health and human services programs. In total, the House would cut these programs by about $56 million less than the governor in the current biennium and by about $138 million less during the next three years.
The House accepts many of the Governor’s proposed shifts and delayed payments to hospitals, his recommendation to increase managed care withholds, and his proposal to cap growth in waivered programs. They rejected his proposed 2 percent cut to pharmacy payments and delaying the nursing home cost of living increase payment.
Senate leaders are also expected to put forward their budget proposal this week.