Sparks, Bennett split on MinnesotaCare buy-in option

March 06--Local legislators are split on whether all residents on the individual health care market should be able to participate in MinnesotaCare, a health care program for low-income Minnesotans.

District 27 Sen. Dan Sparks said allowing all residents to participate in the MinnesotaCare buy-in program "would reduce costs and improve access for an estimated 100,000 more Minnesotans who purchase their own health insurance on the individual market," according to a press release.

District 27A Rep. Peggy Bennett said though initially the plan seems to be a solid option, putting more people on MinnesotaCare would "decimate" private insurance and cause taxpayers to fund an unsustainable program.

Sparks, DFL-Austin, said unlike MinnesotaCare enrollees who receive subsidized coverage, individuals who choose the MinnesotaCare program "would pay their own way -- meaning the cost of their premiums would pay for their coverage."

"The lack of options for affordable, comprehensive health care in southern Minnesota is one of the top issues I hear about from constituents," Sparks said. "We have one insurance carrier and one provider, so people need more options as soon as possible. After taking a hard look at the MinnesotaCare buy-in proposal, I believe it is our best chance to do right by the people of southern Minnesota this year.

"There is no silver bullet when it comes to improving our health care system, but I think MinnesotaCare buy-in puts us in position to make a positive difference in a lot of lives."

Bennett, R-Albert Lea, said expanding MinnesotaCare would harm rural hospitals and clinics because the program provides even less reimbursement than Medicare or Medicaid.

"It will harm health care in the long run," she said.

Bennett said the Legislature passed legislation last year so farmers could form cooperatives so they could obtain cheaper health insurance, and she wants to see a similar program enacted for businesses. The Legislature also helped introduce more for-profit health insurance plans.

Sparks said the need for the program is evidenced by recent data that showed the number of uninsured Minnesotans increased 46 percent last year partially due to rising insurance costs, leaving approximately 349,000 Minnesotans without coverage in 2017.

"I have heard from farmers who pay more than $40,000 out-of-pocket before they get any help from their health insurance, while other farmers cannot afford any coverage at all," said Minnesota Farmers Union President Gary Wertish last week at a Capitol press conference. "A MinnesotaCare buy-in would provide another option to help ensure that farmers and other small business owners can get the quality health insurance coverage they need."

Enrollees in MinnesotaCare receive health care services through a health plan. The state-funded program is financed by a state tax on Minnesota hospitals and health care providers, basic health program funding and enrollee premiums and cost sharing.

Sparks said expanding the program would increase health insurance choices for families in Greater Minnesota.

"It is estimated that approximately 100,000 Minnesotans would enroll in MinnesotaCare buy-in if given the choice," Sparks said. "By leveraging the state's competitive bidding process, the state of Minnesota could strike a better bargain for these Minnesotans -- delivering lower health insurance costs for Minnesota families at no ongoing cost to taxpayers."

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