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Paulsen, Kline, Bachmann Call for Equity for Minnesota in Health Reform Legislation

Paulsen, Kline, Bachmann Call for Equity for Minnesota in Health Reform Legislation
Letter to House Speaker Asks for Remedy to Medicare/Medicaid Payment Inequities, Unfunded Mandates as Final Bill is Put Together

FOR IMMEDIATE RELEASE : January 14, 2010
CONTACT: Luke Friedrich (952) 405-8510 / Andrew Foxwell (202) 225-2871

Washington, D.C. – As House and Senate negotiators continue their work on a final health care bill behind closed doors, U.S. Representatives Erik Paulsen, John Kline and Michele Bachmann sent a letter to House Speaker Nancy Pelosi today asking that payment inequities and unfunded mandates negatively affecting Minnesota be addressed in the bill. 

Under the current legislation, the future liabilities from the proposed Medicaid expansion are estimated to cost the state $2.1 billion over six years.  Moreover, the states of Nebraska, Vermont and Louisiana are set to receive hundreds of millions dollars in federal subsidies for increased Medicaid costs, whereas Minnesota and other states will get no similar assistance. The letter also requests a remedy for Minnesota’s longstanding Medicare reimbursement inequities.

The text of the letter is as follows:

January 14, 2010

The Honorable Nancy Pelosi
Speaker of the House
H 232, the Capitol
Washington, D.C. 20515

Dear Madam Speaker,

As Congress moves closer to drafting a final version of its health care reform legislation, we wanted to take a moment to highlight particular areas of concern for the state of Minnesota.

First, we have serious concerns about the long-term effects the bill could have on our state budget.  At a time of extremely tight budgets, we believe it is unfair to add additional burdens on the state in the form of unfunded mandates.  In Minnesota, we are already facing a shortfall of $1.2 billion for the current biennium, and the state has already had to reshuffle and reduce health care services.  Moreover, according to the Minnesota Human Services Commissioner, the future liabilities from the proposed Medicaid expansion are estimated to cost the state $2.1 billion over 6 years.

Additionally, we are concerned the bill does not address current geographic payment inequities in the Medicare reimbursement formula.  All Americans pay into Medicare equally yet Minnesota beneficiaries are disadvantaged in the benefits they receive when compared to other larger states.  This flawed formula is not appropriately addressed in the legislation and will continue to hinder Minnesota taxpayers, patients, hospitals and our state’s entire health care system – a system that has consistently excelled at providing low-cost, high-quality care and is rated among the best in the nation.

Even more troubling are the inequities created between states.  We believe it is unfair to have federal tax dollars cover 100% of the cost of the Medicaid expansion for one state, like Nebraska, but not others.  Similarly, $250 million and $300 million in federal dollars will be going to Vermont and Louisiana, respectively, while other states receive no such deal.  In these instances, it seems political considerations have trumped fairness, and we request this issue be resolved in the final legislation. 

We believe that any final health care bill should not include unfunded mandates and that all states be treated equitably.  As the conference moves forward we respectfully ask that you keep these concerns in mind.

Thank you for your consideration and please do not hesitate to contact us if we can be of assistance.

Sincerely,


                                                                                                                                                           
ERIK PAULSEN                                                       JOHN KLINE
Member of Congress                                                   Member of Congress


                                                                       
MICHELE BACHMANN
Member of Congress

 

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