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Paulsen Joins Delegation to Address Medicare Reimbursement Inequities Harming Minnesota

Paulsen Joins Delegation to Address Medicare Reimbursement Inequities Harming Minnesota
Low Cost, High Quality of Health Care Should Not be Compromised in Reform

FOR IMMEDIATE RELEASE: July 23, 2009

CONTACT: Luke Friedrich (952) 405-8510 / Andrew Foxwell (202) 225-2871

WASHINGTON –Congressman Erik Paulsen (MN-03) yesterday joined each of his colleagues in the Minnesota Congressional delegation in sending a letter to President Obama urging him to address inequities in the Medicare reimbursement payment system that are currently harming states like Minnesota that provide cost-effective, high-quality care.  As it stands, Minnesota receives lower reimbursement and pay higher premiums than states, effectively penalizing the state for providing better outcomes and more affordable care.

“Minnesota is a national leader in delivering high-quality, low-cost health care, yet the current reimbursement system penalizes our state,” Paulsen said.  “Not only should we fix the current system so we are actually rewarding quality, cost-effective care, but it simply makes no sense to base a new health care program on one that is already flawed."

During four health care roundtables he held with physicians and health administrators in the 3rd Congressional District on Monday, Paulsen consistently heard about the need to address the current reimbursement inequities and avoid basing a new program on the current payment system.  The letter to President Obama asks that these inequalities be fixed as part of any health care reform legislation in Congress. 
Full text of the letter to Obama is below.

Text of Letter: (Letter is also attached)

July 22, 2009

President Barack Obama              
The White House
1600 Pennsylvania Avenue, N.W.
Washington, DC  20500
 
Dear President Obama:
 
As your Administration advocates for health care reform legislation moving forward in Congress, we want to make you aware that Minnesota is a state in which the quality of care exceeds the national average and per-beneficiary fee-for-service Medicare costs are substantially lower than the national average.  Our “low-cost, high-quality” state is setting the national standard for Medicare, yet we are penalized by the current geographic payment inequities in the Medicare reimbursement formula.  This inequity is no longer tolerable and we urge you to work with us to fix this problem in any health care reform legislation voted on in Congress.

All Americans pay equally into Medicare, yet beneficiaries in Minnesota are severely disadvantaged in the essential benefits they receive when compared to citizens in other states, such as Florida, New York, or California. Why are Minnesotans paying higher premiums for prescription drugs, dental, vision and hearing services while residents of other states receive those benefits free of any additional cost?  This flawed Medicare formula continues to penalize Minnesota taxpayers, patients, providers, hospitals, counties, and the entire health care sector that provides high- quality, low-cost care.

Furthermore, any public insurance option that is based on Medicare’s current reimbursement formula would only further penalize Minnesota and undermine the very success our state has attained in delivering efficient, quality care. Please know that we view any health care reform legislation that perpetuates or extends the current inequity in Medicare as harming Minnesota’s health care system which is obviously unacceptable to us and our constituents.

Mr. President, we must ensure that any health care reform legislation includes benefits for our constituents and the state of Minnesota. We look forward to working with you in the upcoming weeks to find a solution to this important issue.

Sincerely,