Minnesota health care interests cool to Senate health bill

June 22--WASHINGTON -- Leaders in Minnesota's health care community called the Senate Republican health care reform bill disappointing Thursday because of the GOP's continued insistence on significantly cutting Medicaid, the federally paid health insurance program for the poor.

"The big story has been and continues to be what it is going to do to Medicaid," said Jim Schowalter, CEO of the Minnesota Council of Health Plans, a health insurance company trade group. "In Minnesota, that cares for people who are elderly, disabled or poor."

The Senate version of the American Health Care Act (AHCA) mirrors much of what the House passed earlier. But limits on Medicaid would be more severe, although they would take effect over a longer time frame.

"While it takes more time to phase them in, those cuts will have the same impact," Schowalter pointed out. "It's going to shift who pays."

The ranks of the uninsured will swell. States will have to pick up the tab for indigent care. And uncompensated care will go up for care providers.

The Senate reform bill, like the House version, also lets states seek waivers that allow them to get blocks of money to structure their own programs that can limit or exclude some benefits guaranteed in the Affordable Care Act (ACA), President Obama's signature health care reform. States would also be able to impose, within certain limits, work requirements on Medicaid recipients.

The Senate bill would cover substance abuse treatment and mental health care, unlike the House version, which slashed funding for both.

The lack of guaranteed benefits "discourages preventive care," said Wendy Burt of the Minnesota Hospital Association. "It has the potential to really create a lot of chaos and disruption in people's health care needs."

Under the Republican plan, people will not be required to pay a penalty if they do not have health insurance as they were under the ACA. Also, most taxes that financed the ACA will go away.

Republicans pointed to more affordable premiums for individuals seeking insurance if they do not have it through their employers. The GOP plan also raises the number of workers that businesses may employ without offering employee health insurance.

Supporters of the GOP reform say it gives flexibility for states to create plans that better suit their citizenry.

Block grants are not necessarily ideal for care deliverers.

"They're shortening up the money," said Dr. Kevin Croston, CEO of North Memorial Health. "But they're not giving us the ability to manage the care."

Staff writer Jennifer Brooks contributed to this story.

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