Health Care Reform in Minnesota

Abstract

Discusses Minnesota health care reforms enacted April 1992.In 1989 governor created Health Care Access Commission. It found that 9% of state's population were uninsured. Identified insurance practices which hindered proper insuring of consumers. Final report 1991. Commission recommended universal requirement that consumers purchase insurance. (designed to eliminate adverse selection which pushes up rates.) Vetoed by new governor. New commission has targeted costs for a 10% decrease in the rate of increase. Creates many regulator controls. Establishes MinnesotaCare, a voluntary, state subsidized health insurance program. $382/month premium. Sliding scale. Eligibility expands over next 2 years, funding permitting. Financed by cigarette tax, tax on hospitals and providers, and insurers' gross revenues. Approach designed to prevent insurers/providers from evading costs.