MinnesotaCare buy-in proposal discussed Friday in Willmar

Dec. 09--WILLMAR -- A legislative proposal that would make MinnesotaCare available to all Minnesotans who buy their own individual health care insurance was discussed Friday in Willmar.

While not a cure-all for the rising rates and shortage of health insurance plans in rural counties, supporters say it would at least provide a proven and trusted option for consumers -- especially for rural Minnesotans.

"It's a logical option," said Rep. Clark Johnson, a Democrat from Mankato who is sponsoring legislation to make it happen. "It feels like a commonsense option for folks to have."

If it gains state approval and a federal waiver, Minnesotans who shop for individual insurance plans on the open market would have the option of buying the MinnesotaCare plan through the MnSure website.

MinnesotaCare is a state-subsidized program for low-income residents.

But under the buy-in proposal, people who don't qualify for the subsidized MinnesotaCare plan would be able to purchase the high-quality, comprehensive insurance plan by paying the full cost of the premium, Johnson said.

It would be another option on the MnSure website for people who are shopping for insurance on the open market, said Human Services Commissioner Emily Piper. The same tax credits available for the other insurance plans would be applied to the MinnesotaCare option, she said.

Aside from the $12 million to $16 million needed to set up the program, Johnson said there would be no cost to the state.

He said that's a lot less than the $542 million the Legislature agreed to pay to insurance companies over two years to lower insurance rates for individual insurance plans.

Gary Wertish, president of the Minnesota Farmers Union, said the MinnesotaCare buy-in would "fill a gap" in rural Minnesota, especially for farmers.

Johnson said opponents to the buy-in proposal may be insurance companies who have "underperformed" despite getting subsidies.

He urged people present at the meeting to call their local legislators to encourage them to support legislative hearings.

A hearing on the plan was held last year in the Senate but not in the House.

An email issued Friday afternoon indicates GOP legislators have serious questions about the proposal.

Sen. Michelle Benson, chairwoman of the Senate Health and Human Services Finance and Policy Committee, questions the true cost of the proposal and the financial impact to rural hospitals and healthcare professionals.

Benson said a "massive tax increase" would be needed if the program was implemented in Minnesota.

"It's one thing for health care policy to sound good and feel good, but this time it has to work," Benson said in the email.

Piper said the buy-in plan would not be government-subsidized but would be premium-based.

She said MinnesotaCare, which was started by Republican Gov. Arne Carlson, has bipartisan support and she hopes a proposal to offer it to other residents also gets bipartisan support.

Rep. Dean Urdahl, R-Grove City, was at the meeting in Willmar, but there was a row of empty chairs in the room that were marked as reserved for other area GOP legislators.

Lt. Gov. Tina Smith had been scheduled to attend the meeting in Willmar, but Thursday night her office sent an email indicating she would instead be meeting throughout the day Friday with Gov. Mark Dayton, commissioners and staff.

Although Dayton said Friday that he has not yet decided whom he will appoint to replace Al Franken in the U.S. Senate, there has been speculation that Smith is a likely candidate to temporarily fill the seat after Franken's resignation.

No matter who is appointed, a special election will be held in November to serve out the remainder of Franken's term, which expires in January of 2021.

The general election in 2020 will again be for the full six-year term.

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