Health and human services omnibus bills make good investments using wrong resources
When the House and Senate released their committee targets in March, we were surprised that the health and human services budget division was required to cut $150 million in the House and $153 million in the Senate. After years of reductions to critical services for Minnesota’s most vulnerable, including $1 billion in cuts in the 2011 Legislative Session, we believed this year would offer an opportunity to start making up lost ground investing in our state’s health and well-being. (more…)
Rural hospitals in Minnesota protest Blue Cross reimbursement cut
Minnesota’s largest health insurer seeks to reduce variations in what it pays different hospitals for the same services. Read more.
Hostile Welcome in Shakopee for Governor
Lee Larson from St. Gertrude’s Health and Rehabilitation Center in Shakopee was part of a challenging audience for the Governor with regard to the impact of tight state budgets on his employees. Read more.
State Health Insurance Exchange Bill Update
Abortion restrictions have been cut from a final version of the health insurance exchange bill that will impact how more than a million Minnesotans obtain health coverage, starting in October. (more…)
Governor Dayton’s Budget Proposal Part 5: Health and Human Services
Many Minnesotans have seen the value of public health and human services at some point in their lives, whether it’s child care assistance that enabled a friend to keep her job, nursing home care for an elderly parent, or affordable health insurance for a cousin with a chronic illness. These and other essential services improve the health and stability of Minnesota families throughout the state.
Governor Dayton’s budget proposal increases funding for health and human services by $128 million over forecasted spending for the FY 2014-15 biennium (or an eight percent increase from FY 2012-13). Despite the wide scope of this area of the state budget, the Governor manages to stretch limited dollars pretty far. The initiatives in his budget will improve the lives of thousands of Minnesotans and help the state provide services more efficiently. (more…)
Forecast Shows Small Improvement
The release of the February 2013 Economic Forecast means legislators can begin in earnest the challenge of setting a budget for the FY 2014-15 biennium. The good news from the forecast is that Minnesota’s economy is moving in a positive direction. However, the state continues to face structural deficits, meaning we haven’t found a sustainable way to meet the state’s needs and make investments that are critical for our future economic success.
More good news for the FY 2012-13 biennium. There is a $295 million positive balance for the current biennium, FY 2012-13. Of that, $290 million must be used to continue to buy back the school payment shift, bringing the total amount that has been repaid to schools to $1.9 billion, with $801 million left. The remaining $5 million of the positive balance will go into the state’s budget reserve, bringing the balance to $649 million.
Next biennium improves, but deficit remains. The November forecast predicted a $1.1 billion deficit for the FY 2014-15 biennium. Thanks to a combination of improved revenues and lower-than-anticipated spending, that deficit has been reduced to $627 million. This still leaves policymakers with the challenge of addressing the deficit without cutting vital services and undermining future economic growth.
After considering inflation, structural deficit continues in FY 2016-17. Although the economic improvements we see in the near future are expected to carry over into FY 2016-17, the state is still anticipating a nearly $1.5 billion deficit after including the impact of inflation.
There is always some level of uncertainty inherent in developing a forecast. In recent years, that task has become even more challenging due to unprecedented economic and political conditions. This forecast takes a cautious road, presuming that Minnesota would experience a “modest shock” from federal sequestration, but expecting Congress to eventually agree to a more targeted deficit-reduction plan. There is a 20 percent chance of sequestration cuts continuing the whole year and slowing economic growth, but still no strong risk of a recession.
We can all breathe a little sigh of relief that Minnesota’s economy is looking better, leading to an overall improvement in the state’s fiscal picture. But this is an important moment for policymakers. As we recognized yesterday, the Governor’s budget focuses on the goals of raising revenues fairly – ending the cycle of deficits, gimmicks and deep cuts – and recognizes the importance of securing future economic growth by investing in stronger, healthier and more educated communities. The Legislature should also pursue these goals as they begin to assemble their budget proposals.
During a press conference, Governor Dayton announced that he will release his supplemental budget during the week of March 11, which will include an increase in the property tax credit for low-income renters
Medical Assistance in Minnesota to be Expanded
More than 87,000 Minnesotans will have access to affordable and meaningful health insurance beginning in 2014, including 34,000 who currently have no insurance. That’s thanks to legislation to expand eligibility for Medicaid, known as Medical Assistance in Minnesota. House File 9 has passed both bodies of the Legislature and Governor Dayton is expected to sign the bill into law. (more…)
New Contraception Exemptions Still Fall Short, Bishops Say
The latest exemptions from the mandate requiring contraception be included in health plans still fall short, U.S. bishops say.
Obama Releases Revised Rules for HHS Mandate
Legal analysts are scrambling today to make sense of new regulations released by the Obama administration that purport to provide a broader opt-out for religious organizations opposed to the HHS birth control mandate…. Read more
Bishops welcome opportunity to study new HHS regulations. Read more.
CHA-USA is studying new rules. Read more.
The new proposed rule in its entirety. Visit here.
CHA enlists in Enroll America to Expand Health Insurance Coverage
Starting in October, low-income uninsured Americans will be eligible to sign up for Medicaid benefits or health insurance subsidies established in the Affordable Care Act. The insurance benefits take effect Jan. 1, and could potentially provide coverage for 32 million uninsured adults. But getting to that goal will take a massive education and enrollment campaign. Public opinion research shows that an alarmingly large majority of people who stand to gain from the law, know little or nothing about it. (more…)