1.1 	A bill for an act
1.2 	relating to health; appropriating money for a cost analysis on health care reform 
1.3 	plans.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. APPROPRIATION.
 1.6 	$300,000 is appropriated in fiscal year 2009 from the health care access fund to 
1.7 	the University of Minnesota for the Department of Public Health, Health Policy and 
1.8 	Management Division, to conduct an economic analysis of costs and benefits of various 
1.9 	health care reform plans.
1.10 	The analysis of each proposal should measure the impact on total public and private 
1.11 	health care spending in Minnesota that would result from each plan, including whether 
1.12 	there are savings or additional costs due to:
1.13 	(1) increased or reduced insurance, billing, underwriting, marketing, and other 
1.14 	administrative functions;
1.15 	(2) timely and appropriate use of medical care;
1.16 	(3) market-driven or negotiated prices on medical services and products, including 
1.17 	pharmaceuticals;
1.18 	(4) shortage or excess capacity of medical facilities and equipment;
1.19 	(5) savings or costs due to increased utilization, better health outcomes, increased 
1.20 	wellness due to prevention, early intervention, and health-promoting activities;
1.21 	(6) increases or decreases in administrative expenses and health care expenses 
1.22 	due to payment reforms;
1.23 	(7) increases or decreases in administrative expenses and health care expenses due 
1.24 	to coordination of care;
2.1 	(8) increases or decreases in upfront and long-term utilization due to access to 
2.2 	comprehensive medically necessary benefits, including dental care, mental health care, 
2.3 	prescription drugs, and other health care; and
2.4 	(9) nonhealth care impacts on state and local expenditures such as reduced 
2.5 	out-of-home placement or crime costs due to mental health or chemical dependency 
2.6 	coverage.