MINNEAPOLIS, 9:45 a.m. CST April 24, 2007 -- After an all night debate Friday, the Minnesota House passed the health and human services budget bill Saturday that aims to cover at least 50,000 uninsured children.

The $10 billion package, which accounts for nearly one-third of state expenditures, would expand the state’s health care safety net programs, put more money into mental health services, raise nursing home payments by 3 percent a year, and set a goal of achieving universal health coverage by 2010.

The "Children's Health Security Act" would cover children even if their parents had access to employer coverage - something that's not currently done on subsidized health programs, according to the Associated Press . Children with family incomes up to $46,500 would be eligible starting in late 2008, and the income limit would rise to about $62,000 by 2011, AP said.

“We’ve been supportive of both the House and the Senate bills, and we’re glad that the Legislature is restoring some of the cuts to eligibility that have occurred during the past three years,” said Dave Renner, MMA director of state and federal legislation.

The Senate passed its health and human services budget bill March 29. The next step is for leaders from the House and Senate to reconcile the two budgets. The threat of a veto from Gov. Tim Pawlenty hangs over the proposals, since Pawlenty has vowed to nix any tax increases.

Renner said the budget bill also includes many of the concepts that the MMA and Healthy Minnesota: A Partnership for Reform have been advocating during the session.

The House proposal supports the medical home concept, sometimes called provider directed care, by paying providers a per-month, per-patient fee for some enrollees who suffer from chronic conditions.

As for achieving universal coverage, the House proposes creating a public-private work group that would make health reform recommendations for the 2008 session. The Senate proposal also calls for a health reform work group but legislators would serve as members.

Another Healthy Minnesota priority was to increase the use of electronic health information records in the state. The House health budget bill also furthers this aim by setting the goal of achieving statewide implementation of electronic medical records by 2015 and offering providers health information technology loans and grants.

The budget also includes $6 million for Pawlenty's proposed health insurance exchange that would help improve consumers’ ability to purchase and access information about individual policies.