Gov. Mark Dayton says 'nightmarish' federal reinsurance process could cut low-income health care

WASHINGTON – The millions of dollars that Minnesota wants to spend to limit rate hikes in the individual health insurance market could cost the state millions more in federal funding for low-income health care.

That news came as a nasty shock to the state officials who have waited months for the federal government to sign off on Minnesota’s reinsurance plan, and to Gov. Mark Dayton, who fired off a testy letter to Health and Human Services Secretary Tom Price on Tuesday.

Earlier this year, Minnesota lawmakers approved a “reinsurance” program with a goal of stabilizing the individual market, which is mainly geared to people without employer-provided insurance. The Legislature’s plan called for spending $542 million over two years, but is contingent on federal approval.

In his letter to Price, Dayton said state officials have learned that Minnesota’s request for a waiver “will soon be approved.” However, Dayton wrote, they also learned that Minnesota is in line for a corresponding reduction in federal funds for MinnesotaCare, which serves a group considered the “working poor.”

Read more: http://www.startribune.com/gov-mark-dayton-says-nightmarish-federal-reinsurance-process-could-cut-low-income-healthcare/445849893/