Minnesota Governor Tim Pawlenty vetoed the Legislature’s bill that restores health care to our state’s poorest and sickest citizens at an overall cost savings. The legislative solution - which passed with overwhelming bi-partisan support on a vote of 125 – 9 restores General Assistance Medical Care (GAMC) to 85,000 Minnesotans for 16 months and represents the Minnesota values we hold most dear – compassion, common sense, and fiscal responsibility.
Unfortunately, said State Rep. Bobby Champion (DFL-58B), within hours, Pawlenty vetoed the bill. While negotiations continued with his office throughout the weekend, an agreement was not reached, and an attempt to override the veto in the House last Monday was unsuccessful when the 38 Republicans who originally supported the bipartisan reform proposal voted to uphold the Governor’s veto.
That means starting yesterday, more than 30,000 of our state’s poorest and sickest citizens will begin receiving notice that they will be enrolled in another program that costs the state more money and offers less coverage, and that another 20,000 people will lose their healthcare as a result of these changes.
“I will not rest until we find a solution to care for these people in a way that we can afford. I will not let months of hard work, compromise, and collaboration vanish due to the misguided priorities of Governor Pawlenty,” Champion said.
The GAMC program is scheduled to expire on April 1st and the Department of Human Services (DHS) is moving ahead, per the Governor’s instructions, to auto-enroll recipients in the ill-suited MinnesotaCare program, he said.
The legislative solution, Senate File 2168, was drafted after months of discussion and compromise with key advocates and interest groups. It restored the GAMC program for 16 months in a financially-responsible manner by instituting system reforms, including a coordinated care delivery option, mental health urgent care, and rapid access to psychiatry. Other cost-cutting measures, including the tightening of eligibility guidelines and provider rate cuts, made the temporary program less expensive to run. Hospitals and other providers recognize that action is needed and despite the difficulties presented by the funding mechanism were supportive of this model. Their support was based on the reality that the alternative -uncompensated care provided in emergency rooms -affects everyone in the form of higher health care premiums, higher medical costs, and higher property taxes, he said.
The Legislature’s solution is significantly less expensive and more cost-effective than Governor Pawlenty’s proposal to auto-enroll GAMC recipients into MinnesotaCare, Champion said.
The Governor’s plan would provide care to 21,000 Minnesotans per month at a cost of $937 per enrollee for six months, while the legislative solution would provide care to 38,000 per month at a cost of $457 per enrollee for sixteen months. More specifically, the Governor’s plan would impose a $10,000 cap on inpatient care, a four-month waiting period for coverage, and a monthly premium on a population that earns less than $8,000 per year.
“The Governor’s proposal is not a solution,” Champion said.
To paraphrase the bill's author, Representative Erin Murphy (DFL-64A), the state may be short on resources, but we're rich on conscience. Minnesotans who receive GAMC benefits all earn less than $8,000 per year. Eighty percent have mental health issues and 60 percent have chronic medical conditions. The House gallery on the day of our debate included several veterans, who are representative of the 8,000 veterans served by this program. This legislative solution was designed as a step in the direction of stable housing, employment, and health for a vulnerable portion of our population, he said.
Key House and Senate leaders are continuing negotiations with the Governor’s office and it is possible that outside organizations will mount legal efforts to try to stop the auto-enrollment process.





