JESSICA HARPER ERIN JOHNSON T.W. BUDIG
Former Minneapolis mayor joins Eagan firm 2A Thomson Reuters campus gets greener 9A Senate debates proposed nuclear plant bill 10A
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DATE ##, 2009 APRIL 1, 2010
VOLUME 31, 30, NUMBER NUMBER 5 # VOLUME
Dakota County Tribune Since 1884
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Health insurers, providers express mixed feelings on new law Both welcome influx of insured citizens but disappointed by tax increases and Medicare cuts by Jessica Harper DAKOTA COUNTY TRIBUNE
As local health care insurers and providers prepare for changes created by the federal health care law, many say they have mixed feelings. “Initially, the bill was really termed health-care reform but quickly turned into health-insurance reform,” said Phil Stalboerger, vice president of policy and legislative affairs for Blue Cross and Blue Shield of Minnesota. Stalboerger said he was pleased that the legislation mandates all citizens to purchase health insurance, but was disappointed by the incremental tax increases on health insurance companies. The requirement for all citizens to have insurance will help Blue Cross spread its costs across more people, making it easier to cover those with pre-existing conditions, Stalboerger said. It also prevents people from picking up insurance only when they are sick and dropping it later, he said.
However, the increased fees will present a burden, he said. “The fact that we are nonprofit – our margins are razor thin,” he said. Stalboerger said the company currently operates on a 0.5 to 1 percent margin. “To come up with $20 (million), $30 (million) or $40 million in one given year would be tough. So that’s going to be the biggest impact financially right out of the gate,” he said. Stalboerger said he hopes Blue Cross and Blue Shield of Minnesota will be exempt from the tax increase due to its nonprofit status. According to David Durenberger, chairman of the National Institute of Health Policy, a think tank at the University of St. Thomas, Blue Cross and other nonprofit insurers probably will not be exempt. Durenberger said he thinks the legislation will make health insurance companies and hospitals run more efficiently as See Law, Page 9A
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& Photo by Jessica Harper
Photo by Jessica Harper
Apple Valley Medical Center Administrator Adam Berry said he thinks the new federal health-care law will affect the industry both positively and negatively. On the positive side, clinics will see more insured patients. But he fears Medicare cuts will hurt providers.
Phil Stalboerger, vice president of policy and legislative affairs for Blue Cross and Blue Shield of Minnesota, said he is glad the federal health-care law will require all citizens to purchase health insurance, but is disappointed that health insurance companies will see increased taxes.
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