Why GAMC transition to MNCare Won't Work

Earlier this month JRLC sent a letter to Commissioner Ludeman of the MN Department of Human Services pleading for action on what we called the looming 35K Disaster — the ending of health care coverage for 35,000 very poor, homeless, and disabled folks this coming March 1st (see JRLC Blog). A few days ago the administration announced that they would automatically move enrollees of General Assistance Medical Care (GAMC) into Transitional MinnesotaCare. Unfortunately, this plan delays the loss of coverage for thousands of vulnerable Minnesotans by only a matter of months. It also fails to solve the significant and expensive long-term problems that were created by the governor’s line-item veto of General Assistance Medical Care. Here's what we and other advocates are saying:

• Many Minnesotans relying on General Assistance Medical Care will still lose their
  health care coverage – now at a slightly later date. Transitional MinnesotaCare is only
  available to someone for up to six months. After that time, everyone must apply for a
  renewal to move to regular MinnesotaCare. Historically, less than 25% of GAMC enrollees
  have been able to successfully transition to MinnesotaCare.
• The Health Care Access Fund, which finances MinnesotaCare, will go into deficit
  earlier. Moving GAMC enrollees into MinnesotaCare will destabilize the Health Care Access
  Fund and could jeopardize the health care coverage of 100,000+ Minnesotans who currently
  rely on MinnesotaCare.
• Patients and hospitals still confront the expensive problem of inadequate hospital
  coverage. MinnesotaCare has a $10,000 cap on hospital care. Half the people turning to
  GAMC have serious chronic and multiple health problems, which in many instances result in
  expensive medical care. This subjects individuals to medical debt far beyond their means
  and will leave hospitals facing millions of dollars in uncompensated care costs.
• Thousands of Minnesotans who benefit from this program but are not enrolled in
  GAMC when the program ends March 1 of next year may not be able to access other
  affordable health coverage. The Department transfer plan provides up to six months of
  coverage via transitional MinnesotaCare only to those individuals enrolled in GAMC before
  March 1, 2010. This will leave out thousands of additional men and women who would have
  enrolled in GAMC after that date, leaving them struggling to find other health coverage.

The DHS decision is a stop-gap measure that does not eliminate any of the urgency around
redesigning GAMC to ensure comprehensive, stable health care coverage for this population,
and raising the revenues necessary to achieve that goal. The Legislature must address this
issue as its first and immediate priority in 2010.