MINNEAPOLIS, April 3, 2008 - On Monday, the House Finance Committee met and amended the House bill, authored by Rep. Thomas Huntley, DFL-Duluth, with payment reform changes supported by the MMA.

The MMA's legislative team has been working closely with lawmakers in an effort to shape the reform package so that it achieves the MMA's reform goals.

The latest House bill replaces the “level 3” payment reform proposal for total cost of care accountability with the option of allowing providers to develop package prices for chronic conditions. In addition, the committee accepted changes that would slow the development of any additional payment reforms.

“This was a positive step forward that improved the House reform bill,” said Dave Renner, the MMA’s director of state and federal legislation. The MMA distributed a letter of support for the payment reform amendments at the committee meeting.
 
However, other changes were tacked onto the bill that are of concern to the MMA, such as a proposal to fund the public health improvement initiatives from the Health Care Access Fund at a cost of $20 million in fiscal year 2009 and $40 million per year thereafter.

Prior to the amendment, these provisions would have been funded from the general fund. The Senate’s health reform bill, which passed the full Senate at the end of March, uses a tax on hospitals to fund the initiatives.

Other House bill changes included striking the Health Insurance Exchange and deleting the requirement that employers offer Section 125 plans to employees.

The latest House bill does include some expansions to MinnesotaCare (MNCare) eligibility. It would:

• increase coverage for children under two years of age from 280 percent of poverty guidelines to 305 percent;
• increase MNCare coverage for families with children from 275 percent to 300 percent of poverty guidelines;
• increase MNCare coverage for single adults and households without children from 200 percent to 300 percent,
• and increase the hospital cap from $10,000 to $20,000. 

The full House is expected to vote on Huntley’s bill next week.

At this time, the MMA but does not support the Senate health care reform bill, since it still contains the proposal for creating a payment system that forces providers to assume responsibility for the total cost of care.

The MMA has developed a clear set of policy goals on health care reform in its Physicians' Plan for a Healthy Minneosta. This plan has served as the MMA's guide as it tries to shape legislation so it is commensurate with MMA policies and guidance from the MMA Board of Trustees.

“These bills are very much a moving target, but the MMA is closely involved and working intimately with both legislators and staff on the bill language,” said MMA CEO Robert Meiches, M.D., in a recent letter to board members. “Please know that we are working aggressively to shape this priority MMA issue.”