Minnesota Plans to Slash Funds for Low-Income Program, Transfer it to Hospitals

Minnesota Gov. Tim Pawlenty and state legislators have reached an agreement to reduce funds for a state-funded program for low-income adults and transfer it to hospitals serving these patients, according to a report by the Minnesota Daily.

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Under the plan, the state’s General Assistance Medical Care plan would be shut down and 17 hospitals in the state serving 80 percent of people in GAMC would form “coordinating care organizations.”

The CCOs would receive about one-quarter the of the funding of the current GAMC program to treat the same patients, requiring them to reduce treatment costs and patients to outside services such as veteran’s assistance, where possible.

The governor vetoed two bills to keep GAMC going, and without the current agreement its patients would have been folded into MinnesotaCare, the other state program for the poor. The new CCO plan was unveiled only hours after a county judge refused to hear a motion to stop the GAMC shutdown.

Read Minnesota Daily’s report on General Assistance Medical Care.

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