Gov. Mark Dayton issued an executive order Wednesday that he says will help rein in the state's soaring cost of providing health care to more than 500,000 Minnesotans.
Facing an annual bill of about $3 billion to purchase coverage from private managed care plans, the order will for the first time require those providers to submit competitive bids to the state. According to Dayton's office, that will "ensure the state gets the best value for taxpayer dollars."
In addition, the order will establish a website where all publicly-available information on managed care programs will be posted.
Finally, providers will be audited annually to determine their administrative expenses, premium revenues and reimbursement rates.
In the words of Dayton's executive order, "the state needs greater disclosure and accountability of managed care plan spending on health care and long-term care services and administrative expenses for state spending programs."
Under the order, providers will be invited to propose ways in which they can more effectively emphasize patients' medical outcomes instead of medical procedures, a process that health care reform advocates have long said can curb costs.
Dayton took a swipe at his predecessor, saying the state's managed care contracts were "largely unchecked" under Gov. Tim Pawlenty.
In a news release announcing the order, Dayton's office continued:
