Cutting MinnesotaCare: Quick fix with long-term consequences

  • Article by: JIM HUMPHREY
  • Updated: May 12, 2009 - 7:42 AM

Instead, we should help people focus on prevention, and we need to manage costs. We can look to private business for examples.

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Gov. Tim Pawlenty's current budget recommendation would cut eligibility for MinnesotaCare for up to 55,000 people. The state needs to find a better way.

If we've learned anything from the economic meltdown, it's that too much focus on short-term results can have catastrophic long-term consequences. Taking away health-care coverage for thousands of Minnesotans may provide a quick fix, but it will have far greater costs in the future. Cutting care would actually drive up the long-term cost of health care by forcing more people into emergency care, which is already overcrowded and very expensive. As an example, treating a bronchial infection in a doctor's office costs between $85 and $145; the cost for an emergency room visit is $450 to $650.

It would also drive up the costs of uncompensated care, which has risen 132 percent over the last five years. Minnesota hospitals already have unrecovered costs of more than $600 million a year for patients who can't pay -- and those costs are recouped through higher premiums to businesses and individuals who are insured.

As the governor and legislators look for ways to bail the state out of our financial crisis, they might ask themselves: What would private business do? As the chief executive officer of one of Minnesota's largest companies, I'd like to offer a perspective that might interest both fiscal conservatives and social progressives. In just four years at Andersen Corp., working with our employees and their families, we've been able to significantly reduce our health-care costs while providing tools and support to our employees that have resulted in their improved health.

The first step is to stabilize costs in the existing health-care plans by learning what is driving the majority of the expense and addressing those issues through plan design -- not elimination. Then regroup to develop a long-term strategy that focuses on preventive measures, manages rising medical costs and increases personal accountability and responsibility for individual health and health care. Ask for guidance from business leaders who have already taken steps to manage this issue, and draw upon the best practices that will work for our state.

Minnesota has a history of creating a culture of health; let's leverage that to build a better understanding about the cost of health care, how to use the health-care system and how to take better care of ourselves. Minnesota has been a national model in emphasizing prevention and for providing coverage. Even in these tough economic times, it's worth preserving that great tradition. It's smart business.

Jim Humphrey is chairman, president and chief executive officer of Andersen Corp. and is a board member of Regions Hospital Foundation.

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