SF 3573

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to health; authorizing a computer-based model to assess the impact of
health care reform proposals; requiring a study of changes to state budgeting
approaches; appropriating money.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin GLOBAL MODELING OF HEALTH CARE REFORMS.
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new text begin Subdivision 1. new text end

new text begin Reform modeling tool. new text end

new text begin To the extent of available appropriations,
the commissioner of health shall award a grant to the University of Minnesota School
of Public Health, health policy and management division, to develop a model that will
assess the impact of proposed health care reforms or major health care-related legislation
on all sectors of the health care system, including access to the full range of health care,
public health, public and private health insurance coverage, long-term and continuing
care, programs for persons with disabilities, social services and other sectors related to
Minnesotans' health. The model must be:
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new text begin (1) developed with safeguards to make sure that the model and its assumptions and
formulas are based on valid and objective data, research, and expert opinions;
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new text begin (2) designed to enable policy makers and state agencies to enter into the model and
study each component of health care reform, including access to all aspects of health care
services, health care homes, payment reforms, population-wide prevention, health status
of Minnesotans, and incidence of chronic disease;
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new text begin (3) capable of assessing the interaction of different legislative and policy changes
to determine the net effect on costs, access, and health status within sectors of the health
care system, and the net overall impact across all sectors;
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new text begin (4) designed to identify risks of unpredictable or unintended consequences, cost
shifting between or within sectors of the health care system, and opportunities to make
changes in one sector that will produce a benefit to other sectors; and
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new text begin (5) capable of being adjusted based on both the proposed changes and the resulting
impact in the following areas:
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new text begin (i) access to all aspects of health care services;
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new text begin (ii) health status of Minnesotans, including the incidence of chronic disease, health
disparities, and risk factors such as obesity and smoking;
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new text begin (iii) utilization of preventive care services such as screenings, immunizations, and
physical examinations; and
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new text begin (iv) costs and cost distribution, including costs to individuals and families,
businesses, and government, including for total cost of health care, health-related services,
and social services.
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new text begin Subd. 2. new text end

new text begin Fiscal notes on health care reform legislation. new text end

new text begin (a) The University of
Minnesota model shall be available to state agencies and the legislature to:
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new text begin (1) conduct a global impact assessment of major health policy changes proposed
in legislation;
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new text begin (2) measure the impact of the proposed legislation on health and well-being; and
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new text begin (3) quantify the costs and savings in every part of the state's budget, in local
government budgets, and for individuals and businesses.
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new text begin (b) The commissioners of human services, finance, and health, in consultation with
the chairs of the senate and house health care policy and finance committees, shall develop
recommendations for the governor and the legislature on changes to state budgeting
approaches and legislative processes that will bridge across traditional budget boundaries
in order to both assess the impact of proposed legislative changes across these boundaries
and to allow the reallocation of resources across boundaries. These approaches shall also
cover a time period longer than the existing two-year budgeting cycle so that longer
term return-on-investment projections can be considered when making short-term budget
decisions.
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Sec. 2. new text begin ECONOMIC ANALYSIS OF HEALTH CARE REFORM PLANS.
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new text begin (a) To the extent of available appropriations, the commissioner of health shall
award a grant to the University of Minnesota School of Public Health, health policy and
management division, to conduct a study and economic analysis of costs and benefits
of various health care reform proposals, including an analysis of the recommendations
of the Legislative Health Care Access Commission, the governor's transformation task
force, and a single statewide plan.
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new text begin (b) The analysis of each proposal should measure the impact on total public and
private health care spending in Minnesota that would result from each proposal, including
whether there are savings or additional costs due to:
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new text begin (1) increased or reduced insurance, billing, underwriting, marketing, and other
administrative functions;
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new text begin (2) timely and appropriate use of medical care;
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new text begin (3) market-driven or negotiated prices on medical services and products, including
pharmaceuticals;
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new text begin (4) a shortage or excess capacity of medical facilities and equipment;
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new text begin (5) increased utilization, better health outcomes, increased wellness due to
prevention, early intervention, and health-promoting activities;
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new text begin (6) increases or decreases in administrative expenses and health care expenses
due to payment reforms;
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new text begin (7) increases or decreases in administrative expenses and health care expenses due
to coordination of care;
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new text begin (8) increases or decreases in up-front and long-term utilization due to access to
comprehensive medically necessary benefits, including dental care, mental health care,
prescription drugs, and other health care; and
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new text begin (9) nonhealth care impacts on state and local expenditures such as reduced
out-of-home placement or crime costs due to mental health or chemical dependency
coverage.
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new text begin (c) The study should also analyze for each proposal the number of Minnesotans
without access to health care, including those lacking access to certain types of medical
care, such as dental care, mental health care, and prescription drugs.
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Sec. 3. new text begin EFFECTIVE DATE.
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new text begin Sections 1 and 2 are effective the day following final enactment.
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