Budget and MNsure Updates

Dear Neighbors,

In this edition:

1) Budget Forecast: $1.1 billion surplus projected from new $2.4 billion tax and fee increase

2) MNsure Update: continuing problems, higher costs, fewer choices and privacy risks

1) Budget Forecast: $1.1 billion surplus projected from new $2.4 billion tax and fee increase

Every November state officials release a projected forecast for the next two-year budget cycle. Based on the recent $2.4 billion tax and fee increase signed into law by Gov. Dayton this spring, it’s no surprise that economists now project a $1.1 billion positive balance for 2014-15.

While some of the surplus is due to a growing economy, a large portion is due to tax increases. In other words, we’ve over-taxed Minnesotans and now may have extra money in our state’s bank account. This assumption is also based on the premise that the economy will react favorably to the new tax and fee increases. But as we know, a lot could happen between now and 2014-15.  

What will happen to the surplus? Assuming the revenue comes in as expected, after complete repayment of the K-12 school shift and other debts, the remaining positive balance will be $825 million.

My Republican colleagues and I will be urging Democrats in complete control of state government to not spend this extra money and instead give it back to hardworking Minnesotans who were over-taxed this year. We can also look toward eliminating some of the excessive taxes put in place on nearly everything from warehousing to equipment repairs to telecommunications and personal income.

Taking more than we needed through tax increases to fund government was the first mistake. Let’s not compound that mistake by spending the surplus instead of returning it to taxpayers.  

2) MNsure Update: continuing problems, higher costs, fewer choices and privacy risks

As I’m sure you’ve seen in the news, MNsure—Minnesota’s arm of the Affordable Care Act (Obamacare)—is still experiencing a wide range of problems since its Oct. 1 launch.

What we’ve seen over the last two months are higher costs and fewer choices for health insurance purchases, and privacy breeches and technical difficulties on the website.

Since MNsure is such a large topic, I’ve created a list below to help summarize issue areas related to cost, choice, privacy and enrollment.

·       Cost. The bottom line: For many individuals and families, insurance through MNsure is more expensive, or the plans that are affordable do not offer what they need.

·       KSTP: MNsure Options Fall Short for Some Families

·       Pioneer Press: Even with low MNsure health insurance rates, some will pay more 

·       Choice. The bottom line: As many as 280,000 Minnesotans who currently have insurance are being forced to give up their existing coverage and purchase more expensive plans as a result of the Affordable Care Act, which, it seems, is less than affordable for many. 

Despite promises that MNsure would work like Expedia or Travelocity, it still lacks the basic function to search if a current clinic or current doctor will be covered under any given plan.

·       Privacy. The bottom line: Due to insufficient and questionable data policies put in place by MNsure, the website remains vulnerable and current law is inadequate to protect from improper use. 

·       KSTP: Security Concerns Continue to Surround MNsure

·       Enrollment. The bottom line: 24,586 people are in the process of enrolling through MNsure, while zero have actually completed enrollment and received their policy documents. 

What we need:

·       1.3 million people to enroll by 2016 for MNsure to be financially sustainable

·       $76 million: the amount per year taxpayers will be on hook for if enrollment numbers aren’t met

·       Pioneer Press: MNsure helpline waits reach an hour

·       WCCO: Glitches continue

·       Pioneer Press: MNsure glitches prompt state to double check more than 30,000 applications

·       Pioneer Press: Insurers warn MNsure: Coverage delays possible

Prior to passage of Obamacare, about 9% of Minnesotans were uninsured, with almost 75% of those uninsured eligible for existing public assistance programs or private plans through their employer. That means our nation-leading health care system was replaced by MNsure to find solutions to insure around 125,000 of the state’s 5.4 million residents, roughly 2.5% of Minnesotans.

Folks around the state are disillusioned by MNsure, and understandably so. The frustration they feel is not unfounded when bad reports continue while legislators and state leaders don’t act to fix the problems.

MNsure was created by Gov. Dayton and Democratic leaders in the Senate and House this year. They gave the new government agency autonomous, unbridled power without any accountability to the Legislature or taxpayers. MNsure is one of the unfortunate consequences of one-party control.

During the entirety of Obamacare debates in committee meetings and on the House floor, my Republican colleagues and I offered hundreds of amendments that would help fix what we saw would be potential problems with MNsure. Unfortunately, a rare few were adopted. Minnesotans deserve better.

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As always, feel free to contact me at any time. I am honored to serve the people and priorities of Rogers, Dayton and Maple Grove.

Have a great weekend, 

Joyce

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