Minnesota Gov. Tim Pawlenty (R) on Monday said that legislation being considered by lawmakers to overhaul the state's health care system could lead to higher costs by further expanding eligibility for state health programs, the Minneapolis Star Tribune reports. Pawlenty met with members of a legislative conference committee that is working to resolve differences in the state House and Senate versions of the legislation.

Under both bills, health clinics in the state could qualify for higher reimbursement by establishing themselves as "health care homes" that provide comprehensive and coordinated care, particularly for residents with chronic health conditions.

Pawlenty has criticized the cost and scope of both measures, saying lawmakers first should focus on lowering the cost of care for insured residents before expanding state health programs as a way to achieve universal coverage. The governor requested that lawmakers simplify the health care home concept and that lawmakers identify ways to fund the changes proposed by the legislation without using the state's Health Care Access Fund. The legislation would cost an estimated $40 million to $60 million annually.

Pawlenty is seeking to bridge a projected budget shortfall by extracting $250 million from the Health Care Access Fund -- a fund that helps pay for the state's subsidized health care program MinnesotaCare -- to finance state-funded health care programs that usually are financed through state tax revenue. Democrats oppose the move.

State Sen. Linda Berglin (D) said Pawlenty expressed concern about whether savings from the proposed changes would go back to private businesses to further lower health care costs, adding that is "exactly what the Senate bill envisions" (Wolfe/Lopez, Minneapolis Star Tribune, 4/21).

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