SAINT PAUL, MINNESOTA – On Wednesday, April 3 the House DFL Majority announced a new Health and Human Services Budget. The budget strengthens health care for all Minnesotans by lowering the cost of care, making drug prices more affordable by holding Big Pharma accountable, addressing health disparities, improving health care for women, and expanding coverage options for Minnesotans.
A fact sheet with more information is available for download here.
“Minnesotans should be able to count on receiving quality health care at a price they can afford. Unfortunately, the deck has been stacked against Minnesotans in favor of insurance companies, Big Pharma, and pharmaceutical middlemen,” said Rep. Tina Liebling (DFL – Rochester), Chair of the House Health and Human Services Finance Division. “This bill will help keep Minnesota a leader in health care by putting patients ahead of profits. It offers solutions to reduce costs, expand coverage, and improve the health of all Minnesotans.”
The bill preserves the funding stream for the Health Care Access Fund, which enables innovations in health care and provides access to health care for Minnesotans with low and medium incomes. It also includes ONEcare, an idea proposed by Governor Walz, which offers Minnesotans the opportunity to buy-in to a plan with a provider network and benefits similar to MinnesotaCare. Significantly, the plan aligns prescription drug benefits for all state health coverage programs and uses the state’s purchasing power to reduce drug prices. It also includes a streamlined structure for dental coverage.
“All Minnesotans deserve access to high-quality, affordable health care,” said House Speaker Melissa Hortman. “Our budget works to ensure every Minnesotan can afford their health insurance premiums and actually get the care they need when they need it. Instead of Republican giveaways to insurance companies, our discounts will go directly to consumers and pave the way for a public health care option.”
For Minnesotans purchasing their health insurance through a private plan in the individual market, the budget includes a 20 percent direct premium discount to address high premiums. This contrasts with the Republican plan to continue subsidies to insurance companies with no accountability or guarantee of lower premiums. The plan also fixes the so-called “family glitch” which leaves some employer-insured workers without health insurance for their families and reduces costs for parents who buy-in to Medical Assistance to get services for a child with disabilities.
The budget includes new accountability measures for HMOs, including loss ratio requirements in the individual, small employer, and large group markets. Depending on the type of plan, at least 80 or 85 percent of premiums earned must be spent on health care services. If an HMO fails to meet this requirement, consumers would receive direct rebates. The bill also prohibits HMOs from using its earnings for any purpose other than providing comprehensive health care.
“Destructive Republican budgets prioritize insurance companies and Big Pharma over Minnesotans,” said House Majority Leader Ryan Winkler. “Through our Minnesota Values Budget, House DFLers are working to make affordable health care a reality for everyone.”
In addition to the prescription drug initiative contained in the ONEcare plan, the House DFL’s budget includes other bold ideas to ensure Minnesotans can access the medications they count on. These include a prohibition on drug price gouging, increased transparency, and changes to pharmacy benefit manager (PBM) licensing. The bill also allows Minnesotans to access an emergency supply of insulin if they can’t afford to fill their prescription.
Minnesota’s wide health disparities are targeted through measures to increase funding for the Minnesota Family Investment Program (MFIP) for the first time in 33 years, invest cultural competency for mental health, and increase funding for child protection in our tribal communities. Women’s health is strengthened through increases in family planning access, greater access to birth control, coverage for breast cancer screenings, sexual assault prevention grants, and doula services for Minnesotans with low-incomes. The proposal also ensures mental health parity, as well as periodontal disease and asthma coverage for those with low-incomes.
The bill also contains improvements to eldercare, addressing abuse, assault, neglect and other maltreatment in Minnesota’s assisted living facilities and nursing homes. These reforms include new licensing requirements, a prohibition on deceptive, misleading, and aggressive marketing practices, protections against retaliation against residents, and clarifications of residents’ civil rights.
“We continue to hear too many reports of older and vulnerable adults being victims of shameful behavior at the hands of the very people entrusted to care for them,” said Rep. Jen Schultz (DFL – Duluth), chair of the House Long-Term Care Division. “These Minnesotans should be able to live with dignity, and these protections will better ensure they are able to.”
The HHS Finance Division will take public testimony on the new budget today at 12:45 p.m. in Room 200 of the State Office Building.