[ST. PAUL, MN] – At a St. Cloud hospital today, Governor Tim Walz, Lieutenant Governor Peggy Flanagan, Department of Human Services Commissioner Tony Lourey and CentraCare CEO Dr. Kenneth Holmen emphasized the need to protect the Health Care Access Fund. As more Minnesotans struggle with the rising costs of health care and are priced out of coverage, now is not the time to eliminate a longstanding source of health care revenue. The main source of funding for the Health Care Access Fund expires at the end of the year, threatening the financial stability of health care coverage for more than one million Minnesotans. The Health Care Access Fund supports essential health care services, including the health care coverage provided through Medical Assistance (Minnesota’s Medicaid program) and MinnesotaCare.

Following the event at CentraCare, the Governor continued the healthcare conversation at a community roundtable where he highlighted the Administration’s health care proposals. The Governor’s budget includes funding to extend low-cost coverage to thousands of farmers, small-business owners, and entrepreneurs. It leverages the state’s purchasing power to lower prescription drug costs, expands access to dental care, and creates a public option to provide every Minnesotan with an additional health care option.

“Minnesotans need and deserve accessible, affordable, and comprehensive health care options for their families,” said Governor Walz. “Now, more than ever, it is critical to have stability in our state health care system, because no one should be forced to choose between quality health care and being able to afford their basic needs.”

“Minnesotans shouldn’t have to choose between health care and providing food, safety, and security for their families,” said Lieutenant Governor Flanagan. “That’s why we’re working to keep health care costs down and ensure that critical programs that provide affordable care to Minnesota families don’t disappear.”

“At CentraCare we welcome innovation, and we agree there needs to be additional conversation and dialogue with policy-makers and stakeholders about how we continue to transform our government programs and how we pay for them in a sustainable way,” said Ken Holmen, MD, President and CEO of CentraCare Health. “While that conversation continues, CentraCare also supports the continuation of the provider tax, which has served the working poor and vulnerable Minnesotans for the past 27 years.”  

INCREASE ACCESS TO COMPREHENSIVE HEALTH CARE

Maintain the Health Care Access Fund

Governor Walz’s proposal maintains the Health Care Access Fund by repealing the sunset provision for the Provider Tax which would otherwise expire at the end of 2019. This proposal increases Health Care Access Fund revenues by $992 million in the FY2020-21 biennium. The Health Care Access Fund provides essential health care coverage through the MinnesotaCare and Medical Assistance (MA) programs and supports public health activities through the Minnesota Department of Health. Funding from the Health Care Access Fund will support the Health Insurance Premium Subsidy and the State Based Health Insurance Tax Credit – new programs which will target Minnesotans who currently pay full price for their health insurance on the individual market. Repealing the sunset provision for the Provider Tax maintains essential health programs for thousands of Minnesotans and provides stable funding for Minnesota’s innovative health policy initiatives that promote access to health care, improve the quality of care, and contain health care costs.

IMPROVE OUR HEALTH CARE SYSTEM

Provide a 20 Percent Health Insurance Premium Subsidy

The Governor will take immediate action by creating a subsidy program to reduce by 20 percent the monthly premiums for Minnesotans who receive their insurance through MNSure. This subsidy will be applied directly against a consumer’s premiums. This proposal provides relief to Minnesotans with incomes over 400 percent of the federal poverty level do not qualify for the federal premium tax credit which helps lower the costs of health insurance premiums. Up to 80,000 people could participate in the program, reducing the out-of-pocket costs of their health insurance premiums.

Establish a Health Insurance Tax Credit

The Governor’s proposal establishes a State Based Health Insurance Tax Credit to help ensure Minnesotans on the individual market pay no more than roughly 10 percent of their income on health care. This proposal also provides relief for consumers who do not qualify for the federal tax credit or other state-based health coverage programs. Minnesotans will be able to qualify for the credit beginning with plan year 2021 coverage. Almost 50,000 Minnesotans could be eligible to receive the State Based Health Insurance Tax Credit and see a reduction in their health insurance premium costs by 2023.

Provide a Health Care Buy-In Option

Governor Walz’s budget creates a health coverage option for Minnesotans statewide by having the Minnesota Department of Human Services offer a comprehensive platinum-level buy-in product in Minnesota’s individual market called ONECare. This buy-in option will have a provider network and benefit set similar to the MinnesotaCare program, including dental and vision benefits and behavioral health services, which is broader than what is currently available in the market. After an initial startup investment, consumer premiums will pay the full costs to the state for the program.

To learn more about Governor Walz’s proposed health care budget, click here.