Minnesotans could save billions in health care costs, task force says

Gov. Tim Pawlenty said there's much he likes in the wide-ranging recommendations he received Tuesday from a task force he appointed to find ways to improve health care in Minnesota.

But he stopped short of endorsing some of the panel's recommendations, such as requiring Minnesotans to buy health insurance or raising the cigarette "health-impact fee" to discourage smoking.

"I think we've done enough to smokers for now" by banning smoking in most bars and restaurants and adding the 75-cent fee, he said. And requiring everyone to have insurance might "criminalize poor people" who can't afford it, he added.

Still, Pawlenty said the task force report "can be the framework for a significant health care reform initiative in Minnesota."

The broad range of recommendations would link doctors, hospitals, employers, patients, insurers, schools, communities and policy makers in initiatives aimed at paring $12.3 billion from health care costs otherwise projected to soar from about $30 billion now to $57.4 billion by 2015.

"Maybe we can do that without mandating health care coverage or the tobacco fee," said Rep. Tom Huntley, DFL-Duluth, co-chair of the task force.

"But we've got to start now," Huntley added. "Paying docs to keep people healthy and reducing the number of uninsured can make a huge difference."

But the task is daunting at a time when Minnesota faces a budget deficit and the Legislature will focus much of its attention on bridges and other transportation issues, Huntley and others said.

The task force recommendations are similar to those due later this week from a legislative commission. Both groups spent the summer analyzing the health care system and seeking ways to change how health care is delivered and paid for in Minnesota.

'Can't do this piecemeal'

"I'm hopeful we'll be able to get together [with the governor] on a plan, but we can't do this piecemeal," said Sen. Linda Berglin, DFL-Minneapolis, co-chair with Huntley of the legislative commission and a member of the task force.

Huntley said the most expensive immediate need is about $57 million for a public education campaign to reduce smoking and obesity, and to educate Minnesotans about the new system.

• Set statewide standards for physical activity in schools and require them to offer meals that exceed federal nutrition guidelines to fight obesity.

• Offer health-insurance subsidies to low-income people. For instance, a family of two earning less than about $3,400 a month -- three times the federal poverty guideline -- should pay no more than $238 monthly for insurance.

• Eliminate insurance premium variation based on health status, but allow differences based on age, smoking and where someone lives.

• Allow doctors and hospitals to set their own prices, but stop negotiating discounts with insurers so that a patient would pay the same regardless of insurance plan.

• Set up ways for consumers to easily compare costs of different providers, including costs of "baskets" of comprehensive maternity care and other conditions.