Health Care

News Release - January 11th, 2007

While I was out on the campaign trail, the concern I heard repeated the most was the rising cost of health care. Skyrocketing premiums are stressing individuals, families, and businesses in our district and state, which is understandable, as the need for health care is central to many critical decisions we make in our daily lives.

I believe that a fiscally responsible solution to this health care crisis requires three approaches: reforming the health care system, passing cost savings onto premium payers, and increasing the number of insured Minnesotans.

Increasing the number of Minnesotans with health care coverage will not only ease the burden on those without it, but provide cost savings to those who currently have coverage. When people without coverage go to the emergency room, the providers and hospitals are not compensated. As a result, insurance premiums for those who have coverage increases to make up for this uncompensated care. As I see it, the more people who have health care coverage, the more everyone’s premiums will decrease.

A number of important health-care reforms and initiatives were recently introduced by the Senate. I am confident that these proposals, which are estimated to provide 20,000 new Minnesotans with health care coverage, would have positive results for families in our district and state:

• Increase MinnesotaCare eligibility for single adults without children.
  • By increasing eligibility standards, the number of covered adults will increase, resulting in savings and lower premiums across the board.
• Allow small businesses with less than 50 employees to purchase MinnesotaCare coverage for their employees.
  • This gives small businesses, the staple of our communities, an affordable opportunity to provide their employees with health coverage.
• Allow children to be covered by MinnesotaCare without going four months without other insurance coverage
  • Health care for children should not have to wait for administrative bureaucracy.
• Create a prescription drug discount program for families of four earning less than $60,000.
  • Allow working families to purchase prescription drugs at an affordable price.
• Expand the definition of “dependant coverage” to allow parents to keep unmarried children up to age 25 covered under their policy.
  • Many young adults do not have jobs that offer health coverage. Allowing them to be covered under their parents’ policies will significantly reduce the number of uninsured Minnesotans.
• Modify the definition of self-employed farmers by eliminating the requirement of adding back in the business’ depreciation.
  • Increase the number of farmers and families covered by MinnesotaCare.
• Place a cap on the annual increase in health care premiums.
  • The skyrocketing increases in health care costs must be contained.
• Eliminate MinnesotaCare premiums for members of the military and their families for up to 12 months.
  • Many military families face financial hardships during or after a family member is overseas. This proposal recognizes the sacrifices these soldiers gave on behalf of our country by waiving premium payments.
• Restore outreach programs for MinnesotaCare.
  • It is estimated that one out of three people who are eligible are not enrolled. The state needs to extend greater effort to inform these people that they are eligible for health care coverage.

Many components of this legislative package can be funded through surpluses in the Health Care Access Fund and others through the state General Fund with no tax increases necessary. I enthusiastically support these proposals and look forward to a legislative session where we can hold down health care costs for all Minnesotans, and help working families get the affordable health care coverage they deserve.

I encourage you to contact me with your questions or comments about these bills or any other issues. You may call me at (651)-296-5419, send an e-mail to sen.rick.olseen@senate.mn, or write to G-24 State Capitol, St. Paul, MN 55155.