Minnesota

Status of reform effort: On February 8, 2008, The Health Care Transformation Task Force issued recommendations for developing a universal health care plan.  The state legislature passed health reform legislation, which was vetoed by Governor Pawlenty.

On January 11, 2007, Governor Tim Pawlenty (R) announced a new health care reform plan, Healthy Connections, to increase health insurance access for the uninsured, decrease costs, and improve quality.  As a first step in comprehensive state health reform, on May 29, 2007 Governor Pawlenty signed HF 1078 into law.  The legislation increased MinnesotaCare childless adult eligibility from 175 percent to 200 percent of the federal poverty level on January 1, 2008, and up to 215 percent of the federal poverty level on July 1, 2009.  In addition, it sought to improve public education, provide incentives for organizations who sign-up eligible individuals for MinnesotaCare, establish health promotion programs, and create a wellness benefit for Medicaid recipients with chronic health conditions.       

In another step, on May 25, 2007, the Governor signed into law the 2007 Omnibus Health and Human Services Appropriations Bill, which established funding for a study of how a Minnesota Health Insurance Exchange would operate.  The Minnesota Health Insurance Exchange is a connector model that would seek to improve affordability and access of private health care coverage for individuals and small employers. 

The 2007 Omnibus Appropriations Bill also provided funding for the Health Care Transformation Task Force, a panel of health care experts charged with exploring ways to reduce health care spending, improve quality, and ensure that Minnesota develops a universal health care plan by 2011.  On February 5, 2008, the Health Care Transformation Task Force issued its report.  The Task Force’s recommendations to improve health care coverage include:

• Establishing a Health Exchange where people can compare plans and purchase coverage;
• Requiring all residents to purchase health insurance by January 2011;
• Providing premium subsidies to help people afford health care coverage;
• Implementing insurance market reforms;
• Requiring all employers with more than 10 employees to establish a Section 125 plan that allows employees to pay for health insurance with pre-tax dollars.

In May 2008, the state legislature passed HF 3391.  The legislation would expand MinnesotaCare for children, families, and childless adults to 300% FPL, develop a Health Care Transformation Commission, seek to improve the quality of care, and manage rising health care costs.  On May 13, 2008, Governor Pawlenty vetoed the legislation because of the cost. *

* H.F. 1078. 2007 Legislative Session (Minnesota, 2007). For bill text see: http://www.revisor.leg.state.mn.us/bin/bldbill.php?bill=H1078.3.html&session=ls85. For Health Care Transformation Task Force recommendations see: http://www.health.state.mn.us/divs/hpsc/hep/transform/ttfreportfinal.pdf. H.F. 3391. 2008 Legislative Session (Minnesota, 2008). For bill text see: https://www.revisor.leg.state.mn.us/bin/bldbill.php?bill=ccrhf3391.html&session=ls85.