MinnesotaCare Up for Grabs at the Capitol

An estimated 100,000 Minnesotans rely on a state supported health care plan whose future is in doubt at the Capitol. MinnesotaCare provides quality, low-cost care for Minnesotans with moderate incomes who do not qualify for Medicaid. The plan has been modeled nationally, and is an integral part of Minnesota’s health care network.

Minnesota has been a leader in providing affordable health care options for low and moderate income families. Yet, under the recently introduced House Health Care budget, an estimated 100,000 people will lose their health care coverage through MinnesotaCare. Despite the state’s $2 billion budget surplus, House leaders have proposed eliminating state support for the program and transferring enrollees to the MNsure health care exchange where premiums are higher and benefits are less robust.

With almost 30 percent of MinnesotaCare enrollees over the age of 50, AARP MN is very concerned that these individuals may forgo their care; delay their care; or be forced to make expensive ER visits, adding to the financial burden for the individuals, local hospitals and increasing insurance costs for everyone.

AARP recently joined more than 70 Minnesota organizations in asking House leaders to reconsider eliminating MinnesotaCare:

 

March 27, 2015

Representative Kurt Daudt, Speaker of the House

Re: HF1665

Dear Speaker Daudt:

The undersigned 78 organizations are writing to urge you to oppose the elimination of MinnesotaCare, as proposed under HF1665.  MinnesotaCare has provided reliable, comprehensive, affordable public health coverage to Minnesota families for over 20 years.  Its elimination would harm over 90,000 Minnesotans who rely on it for affordable health care.

MinnesotaCare is an essential source of health coverage for working families across the state. Individuals are eligible for MinnesotaCare if they earn between $15,500 and $23,300 per year for a single individual – for example full-time workers earning $8 to $12 an hour. MinnesotaCare enrollees are parents and single adults who work in jobs that do not offer employer coverage.  They are retail employees, child care providers, janitors, and small business owners.  MinnesotaCare is a particularly important source of coverage in greater Minnesota.  The 25 counties with the highest percentage of MinnesotaCare enrollees per capita are all in greater Minnesota.

HF1665 would dramatically increase health care costs for MinnesotaCare families while also complicating enrollment, reducing critical benefits such as mental health services, and decreasing coverage stability.

Consider a 40 year-old single woman in Minnesota who earns $22,000 a year as a child care provider. On MinnesotaCare, she pays $43 a month plus a minimal deductible and co-pays for comprehensive, quality health coverage. Under HF1665, she would lose her coverage and be eligible to purchase private insurance. On MNsure her options would include one or more silver plans with tax credits and cost-sharing reductions as required under the ACA (referred to as MinnesotaCare II in HF 1665).  HF 1665 also proposes an unspecified amount of state-based premium assistance for MinnesotaCare II plans. Even with this assistance, her annual health care costs could double, triple, or worse. Even small costs sharing increases have significant impact on low-income workers, and the increases would be greatest for those with the greatest health needs.

Moreover, access to state-based premium assistance would be dependent on a timely build-out of MNsure functionality, and at best would only be available to consumers enrolling in a very limited number of silver plans. In this context, many consumers will opt to remain uninsured or select high-deductible Bronze plans, leaving them unable to actually access care.

HF1665 would undermine the economic well-being of thousands of Minnesota families across the state.  The elimination of MinnesotaCare would also put the health of thousands of Minnesotans at risk at a time when the state faces a $1.9 billion budget surplus, and the Health Care Access Fund alone has a surplus of $13 million.  We would urge you to consider these harmful consequences and join us in opposing the elimination of MinnesotaCare.

Sincerely,

AARP

African Immigrant Services (AIS)

AFSCME Council 5

AFSCME Council 65

American Cancer Society - Cancer Action Network

American Diabetes Association

American Heart Association

Amherst H. Wilder Foundation

The Arc Greater Twin Cities

The Arc Minnesota

Catholic Charities of St. Paul and Minneapolis

Center for Earth Spirituality and Rural Ministry of the School Sisters of the Notre Dame

Children's Defense Fund-Minnesota

Chinese Social Service Center

CHUM

ClearWay Minnesota SM

Community Action Duluth

Cultural Wellness Center

DMA Consulting LLC

Duluth LISC

Growth & Justice

HAPA Helping All People Achieve

Healing Virtue, LLC

Health Equity Working Committee

Heartland Girls Ranch

Hennepin County Medical Center

Immigrant Law Center of MN

ISAIAH

Jewish Community Action

Joint Religious Legislative Coalition

Lake Superior Community Health Center

Land Stewardship Project

Legal Services Advocacy Project

Mayflower United Church of Christ

Metropolitan Interfaith Council on Affordable Housing (MICAH)

Minneapolis Urban League

Minnesota Academy of Nutrition and Dietetics

Minnesota AIDS Project

Minnesota Association for Children's Mental Health

Minnesota Association of Community Health Centers

Minnesota Budget Project

Minnesota Citizens Federation Northeast

Minnesota Coalition for the Homeless

Minnesota Community Action Partnership

Minnesota Council of Child Caring Agencies

Minnesota Council of Nonprofits

Minnesota Farmers Union

Minnesota Housing Partnership

Minnesota National Farmers Organization

Minnesota Psychological Association

The Minnesota Public Interest Research Group

Minnesota Recovery Connection

MN Nurses Association

NAMI Minnesota

NARAL Pro-Choice Minnesota

National Association of Social Workers, Minnesota Chapter

National Multiple Sclerosis Society, Upper Midwest Chapter

Native American Community Clinic

Neighborhoods Organizing for Change (NOC)

Northland Healthcare Alliance

OutFront Minnesota

PICO Center for Health Organizing

Pillsbury United Communities

Planned Parenthood Minnesota North Dakota South Dakota

Portico Healthnet

The Safety Net Coalition

SEIU Healthcare Minnesota

SEIU Local 26

SEIU Local 284

SEIU Minnesota State Council

TakeAction Minnesota

Therapeutic Services Agency, Inc

UCare

UFCW 1189

Vietnamese Social Services

Westside Community Health Service

Working Minnesota

Youth Determined to Succeed, Inc.