Health Care Reform deal reached
DFL Sen. Linda Berglin said Gov. Pawlenty and legislative leaders have signed off on a health care reform package.
Berglin said the plan will expand health care coverage for 12,000 Minnesotans (Seven thousand people will be enrolled in public programs. Five thousand on the private level). On the public level, they are expanding Minnesota Care coverage for people without children who earn up to 250% of the federal poverty level. That's $25,550 for a single person.
"It is steps toward reform but I think in the future we will need more reform but it's always good to be taking a few steps," Berglin said.
She also said five thousand people would have an easier time accessing health insurance coverage in the private sector. She said five thousand people would be eligible for a tax credit if they purchase health insurance on their tax forms. The individual would have to be uninsured for 12 months and be eligible for a 125 tax plan.
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Employers who are eligible for 125 plans are the ones who don't offer health insurance coverage but offer their employee a pretax sum \to buy their own insurance in the private marketplace. DFL Rep. Paul Thissen said the new bill would allow individuals to deduct 20% of what they pay for their premiums.
The tax credit would be a on a one time basis.
Berglin also said they would provide grants to employers to encourage them to sign up for the 125 plans.
Governor Pawlenty's spokesman Brian McClung also praised the deal. He focused on the reform factors in the medical marketplace.
"We believe that this package will make Minnesota the leading state in the nation when it comes to health care transparency," McClung said.
McClung said there would also be requirements for e-prescribing by 2011.
The health care reform package has been holding up negotiations in the past few days. Berglin said she expected an overall budget deal to be finalized soon.
"I believe this agreement will help them reach that agreement fairly quickly," Berglin said.
But McClung cautioned that the progress made on health care does not mean the bill will become law. He said it will only be considered as a part of the overall budget package.
"We are not doing these in isolation. We look at this entire package holistically. All of these pieces have to come together as one. This is a very important piece for setting that up," McClung said
McClung also said they will be watching how the language is drafted in the overall bill.