MINNEAPOLIS, May 1, 2008 - Gov. Tim Pawlenty met with key lawmakers Wednesday and offered a slate of health reform ideas to try to reach agreement on a final health care reform bill.

Pawlenty’s proposal keeps most of the reforms that have already passed the House and the Senate such as support for medical homes, care coordination, and increased public health expenditures.

However, Pawlenty did suggest several changes in the 14-page document he distributed.

Pawlenty supports replacing the proposed Health Care Transformation Commission appointed by the governor and the Legislature to oversee changes in the state's health system with a private model. The commissioners of the health would contract with either one or several nonprofits which would create a system for making provider’s prices and their performance more transparent.

The MMA is still considering the merits of creating a private, nonprofit entity, which has already drawn fire from Sen. Linda Berglin, DFL-Minneapolis, who said such a move would eliminate Legislative oversight.

Pawlenty suggests eliminating the “Level 3” payment reform that if passed would hold providers responsible for the total cost and quality of care. The provision is in the Senate bill. The MMA has said it will not support any health care reform that includes Level 3 payment reform, which resembles capitation.

Instead, Pawlenty proposes having the state contract with the same nonprofit or consortium of nonprofits mentioned above to create a system of calculating and publicizing provider cost and quality information that health care purchasers could use to compare doctors, clinics and hospitals.

“By striking the ‘Level 3’ reform from his wish list, Pawlenty has done a good job of listening to the concerns physicians have been putting forward for the past three months,” said Dave Renner, the MMA’s director of state and federal legislation.

The MMA worked closely with health department staff during recent weeks to come up with reform language that would eliminate Level 3, while still allowing for significant payment reform. Included in the Pawlenty proposal is a voluntary plan for providers to offer baskets of care at set prices.

The discussions between the MMA and the health department did not include some of the suggestions Pawlenty put forward regarding tax credits and health savings accounts.

Pawlenty called for the bill to add health savings accounts for state employees and residents covered by state safety-net programs. Furthermore, he’d like for the bill to include tax credits that would help individuals buy insurance in the private market.

The MMA/health department discussions did not touch upon these suggestions or issues regarding Minnesota Care eligibility expansions due to their linkage to ongoing budget negotiations.