Week in Review - February 2015

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MNsure

In light of issues MNsure has encountered during its first year, Sen. Tony Lourey (D-Kerrick), Senate Health and Human Services Budget Committee Chair, wants more accountability. His bill eliminates the Board of Directors, and designates MNsure as a separate State agency. It also creates parity for MNCare and Medicaid enrollees with respect to compensation paid by MNsure to navigators and in-person assistors to align with insurance producers, and requires MNsure to establish and maintain an agreement with MN.IT for IT services. Lourey’s bill was passed by the Senate State and Local Government Committee on Wednesday, the first of several stops along the way.

Sen. Julie Rosen (R-Vernon Center) has a bill that would preserve MNsure’s current structure, but make some key changes, including allowing insurance executives to sit on the board. Those who helped create MNsure say having an industry executive on the board presents a conflict of interest. But others, including the business community, have long argued that someone who knows the ins and outs of the insurance enrollment process may have prevented some of MNsure’s technological glitches.

Rep. Joe Atkins (DFL-Inver Grove Heights) authored the MNsure bill in the Minnesota House two years ago, says he’s concerned about doing away with the board and is not ready to make big changes.

House Health and Human Services Reform Committee Chair Rep. Tara Mack (R-Apple Valley) introduced a bill last month to cap pay for MNsure’s top officials and require the State to seek waivers making federal subsidies for health insurance available to anyone, whether they buy insurance on or off the exchange.

Governor Dayton says he is open to the discussion.

Mental Health

Gov. Mark Dayton is calling for a $35 million boost in funding for mental health services throughout the State — a plan mental health advocacy groups are applauding.

In broad terms, it pumps new money into prevention and early intervention programs, improves access to treatment and expands community support for recovery. The Governor’s plan would establish a single statewide emergency phone number for crisis services. It creates a new psychiatric residential program for children, and expands the number of community treatment teams.

Funding would be increased for adult housing services, community mental health centers and family care. The plan also includes a study of State payment rates to mental health care providers.

Rep. Matt Dean (R-Dellwood), Chair of the House Health and Human Services Finance Committee, was reserving judgment on the mental health proposal until he learns more about it.

Transportation

While the Governor and the new House Republican majority have both said a big transportation spending boost is one of their top legislative priorities this year, the two parties are far apart on how to pay for it.

Dayton has made it clear that a successful transportation deal must establish permanent new money streams for transportation projects. The Republican approach has been more modest, resting largely on using a slice of the projected budget surplus to escalate road and bridge spending over the next four years, utilizing efficiency savings at the Department of Transportation, and issuing bonds for more road and bridge building.

House Speaker Kurt Daudt (R-Crown) insists he is optimistic that this legislative session could produce a transportation bill to make both Democrats and Republicans happy, but does not think the public is ready for a gas tax. House Transportation Chair Tim Kelly (R-Red Wing) said he would like to see the Legislature pass a more modest plan this year, and wait until next year to tackle a more comprehensive funding solution. But his Senate counterpart, DFL Sen. Scott Dibble (DFL-Minneapolis) said a final reckoning with the size of the need should not be delayed. Senate Majority Leader Tom Bakk (DFL-Cook) agrees.

Broadband

Minnesota’s Department of Employment and Economic Development has awarded nearly $20 million in State grant funding to 17 projects aimed at increasing broadband Internet access in underserved rural areas. The grant money, which was allocated last session by the State Legislature as part of the Border-to-Border Broadband initiative, will be matched with $25.8 million in private investment.

Ebola

Lawmakers are considering a request for $2 million to help defray the millions of dollars spent by four Minnesota hospitals designated to treat Ebola cases. Mayo Clinic Hospital-Saint Mary’s Campus is one of those four designated centers, and has spent more than $1 million preparing to treat Ebola cases. Of that money, roughly $785,000 was related to the hospital being a designated Ebola treatment center.

In total, the four designated hospitals spent more than $4 million, according to information submitted to the Minnesota Department of Health. Supporters of the aid say these hospitals stepped up during a potential health crisis and should not have to bear all of the costs.

The three other hospitals designated as Ebola treatment centers are Unity Hospital in Fridley, Children’s Hospital and Clinics in St. Paul and the University of Minnesota Medical Center in Minneapolis. The House Health and Human Service Finance Committee amended a bill for $2 million in grant funding to help the hospitals recoup some of their costs. On Monday, Senate Finance Committee Chairman Dick Cohen (DFL-St. Paul) decided to divvy up the $2 million based on the percentage of the total Ebola preparation costs spent by each hospital. It is expected to be taken up on the Senate floor shortly. The House Ways and Means Committee was to take up the bill on Thursday, but rescheduled the meeting for Monday, citing the need for further negotiation.

Measles

A measles case reported at the University of Minnesota is eliciting discussion about Minnesota vaccination laws and prompting health officials to remind parents that it remains a contagious and dangerous disease. The debate has also sparked attention at the national level among presidential candidates, with some controversial remarks made about the effectiveness/health risks of vaccines. Current Minnesota law allows parents to opt out of vaccinations for medical or philosophical reasons, but Rep. Mike Freiberg (DFL-Golden Valley) introduced a bill to require parents to talk to a doctor first before opting out. As measles continues to be an issue across the country and in Minnesota, this may be something the legislature delves into.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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