MINNEAPOLIS, January 27, 2009 - The Minnesota Medical Association Board of Trustees decided Saturday that it cannot support any proposals to restore the General Assistance Medical Care program that include cuts to physician reimbursement, since the existing payments already do not cover the cost of providing care.

The Board also voted to support broad-based tax increases that would support health care programs.

A letter from MMA President Benjamin Whitten, M.D., was sent to state lawmakers this week informing letting them know of the board’s vote and the MMA’s position on the GAMC proposals. The 2010 Legislative Session starts February 4.

The vote means that the MMA, which represents more than 10,000 physicians, can not support the DFL's current proposal to create a 16 month GAMC program. The proposal includes a 50 percent cut in reimbursement rates for care provided to these patients in clinics.

The MMA also does not support Gov. Tim Pawlenty’s proposal for a one-time, short term (no more than 6 months) transfer of GAMC enrollees into the MinnesotaCare.

“Neither the Governor’s plan nor the DFL’s plan addresses one of the most fundamental problems with our health care safety net programs—the need for adequate and reasonable funding,” said MMA President Benjamin Whitten, M.D. “The state’s trend of requiring physicians and other providers to absorb the cost of maintaining these programs isn’t sustainable and will result in clinics having to close their doors.”

The MMA does not support the Governor’s plan because it would move the 30,000 to 35,000 people enrolled in GAMC into a premium-based program – MinnesotaCare - that they will not be able to afford.

In addition, the governor’s proposal will likely bankrupt the Health Care Access Fund (HCAF) as early as next year. Once the HCAF goes into deficit, current law requires the state to stop enrolling people in MinnesotaCare and to drop coverage for single adults – the very same group of GAMC enrollees Pawlenty would transfer into the program.

As for the DFL plan, it puts health care providers in an untenable position.  For most outpatient clinics, the current GAMC payment rates do not even cover the clinic’s overhead costs. Clinic payment rates are already absurdly low. Physicians are essentially getting paid the same rates today that they received in 1989. Since that time, doctors have received only one across-the-board payment increase of 3 percent during the past 18 years, despite practice costs increasing more than 30 percent. In addition, last year, rates were cut by 6.5 percent for all non-primary care services.

Given the current budget crisis, the MMA Board directed lawmakers to consider increasing broad-based taxes, such as the income or sales tax.

“The MMA supports the GAMC program and remains committed to the goal of universal coverage. But such a goal is not free, and we believe that Minnesota needs new, broad-based revenues in order to preserve health care for Minnesotans.” 

Let lawmakers know that health care is not free, and they need to find funding for health care programs by attending the MMA’s Day at the Capitol February 9.