Lawmakers: Slow down on health plan changes

Aug. 22--Some local lawmakers are urging the state to slow down its process for awarding health care contracts that would require 42,000 people in southeast Minnesota to change health plans, according to the Minnesota Department of Human Services.

A new competitive statewide bidding process forecast to save the state $450 million would mean major changes for people enrolled in Medical Assistance and MinnesotaCare. Among the biggest change is the state would no longer contract with health insurance company UCare for most public health insurance plans. In Olmsted County, nearly 17,000 people are using UCare. A second HMO, Medica, serves about 2,000 clients.

Earlier this week, UCare filed a lawsuit in Ramsey County seeking to halt the state's upcoming enrollment period of public health programs as it battles the results of the bidding process. Meanwhile, Olmsted County has joined others in appealing the state's decision. The county wants UCare to remain an option for residents, along with the two other companies picked as part of the bidding process: Blue Plus and Medica.

Sen. Carla Nelson, R-Rochester, said she fully supports Olmsted County's push to have more choices available to residents. She added she is deeply concerned by the prospect of so many people having to change their health plans -- especially considering the problems that have plagued the state's health insurance exchange, MNsure.

"I want to see UCare continue as an option for Olmsted County," Nelson said.

She also wants the state to hold off on awarding the contracts so the concerns of Olmsted County and others can be addressed. Statewide, UCare has 370,000 low-income enrollees. There are 33,625 in southeast Minnesota. If UCare loses that business, Nelson said she fears the long-term consequences could be less competition and higher costs down the road.

Rochester DFL Rep. Tina Liebling also is concerned about the challenge of switching so many people to a new health plan. A looming question is what the shakeup would mean for local enrollees seeking care.

"I want our patients, our enrollees, to get the best possible service that is effective service, and I am being told by people who are closer to the service they are worried about that, and it gives me great pause," she said.

Olmsted County Community Services Director Paul Fleissner said he will be keeping a close eye on the UCare lawsuit because "we believe there's an advantage for us to at least have the option of UCare available to our clients and citizens."

No matter what happens with the lawsuit, Fleissner said he hopes Olmsted County's appeal is successful so that residents will get to choose from three plans, including UCare.

UCare isn't the only organization reeling from the bidding results. South Country Health Alliance, a county-based purchasing group, would go from serving enrollees in 11 counties to just one -- Dodge County. That raises the question of whether the organization would be able to survive.

The Owatonna-based organization would go from having 37,000 enrollees to 5,000, according to CEO Leota Lind. If the state fails to reverse course, she said the alliance would have to lay off at least half of its 100 employees. All 11 of the alliance's member counties have said they plan to appeal the state's decision. The company also has requested the state expedite its process for considering county's requests to reconsider the preliminary decisions. They also want the state to hold off on the upcoming sign up period for public health plans.

The prospect of South Country Health Alliance having to close worries Liebling. She said these types of organizations should not have to compete with HMOs. She noted they are run by elected officials who are accountable to the voters.

She added, "I don't think county-based purchasing organizations should be treated like commercial HMOs in the process."

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