Minnesota Chamber of Commerce Priorities & Grassroots

Minnesota takes great pride in its health care industry – and we should. Our doctors and hospitals are world renowned, our medical companies are on the cutting edge of medical devices and procedures, we have the lowest number of uninsured individuals among all states, and until recently we were the healthiest state in the nation. (Vermont just became #1) Still, our national health care system is facing increasing problems and Minnesota is not immune. Simply put: Rising costs of health care are making our current system unsustainable.

Value = Quality Care + Reasonable Cost
Insurance is expensive because health care is expensive. In the United States, we continue to pay far more for health care than our peer countries. Yet, in many cases, the results fail to be better. The Institute of Medicine estimates that 50,000 to 100,000 people die every year from medical mistakes in hospitals. A RAND study found that only 50 percent of patients received the recommended care regardless of socioeconomic status. According to a report released by the McKinsey Global Institute in January 2007, our health care system is higher in cost and lower in quality than most other Organization for Economic Co-operation and Development (OECD) countries. We spend $477 billion more than peer countries on health care, even after adjusting for our higher per-capita income. We need to demand better value for our health care dollars.

A Concern for Employers and Employees
More than 60 percent of Minnesota businesses – and almost 90 percent of Minnesota Chamber members – provide some kind of health insurance for their employees. That is one of the reasons why Minnesota has the lowest rate of uninsured people in the country. It does not mean that their employees are not affected by higher insurance premiums. As health care costs continue to increase, employers will be forced to make difficult decisions. Some employers may pass health care costs on to their employees through reductions in wage increases, health benefits or increased co-payments; others may eliminate health benefits altogether. Either way, this is a situation in which neither employers nor employees want to find themselves.

A Prescription That Works
The current health care system needs significant improvement - the good news is that we can make changes that will have an impact on the cost and quality. Minnesota, in particular, is in a unique situation to lead these reforms. Our network of doctors, hospitals and insurance plans has naturally consolidated in a way that makes meaningful reform very possible. The Minnesota Chamber is working with leaders in health care and public policy to develop a market-based plan that will improve the quality of care, make it more affordable, and give patients greater power in purchasing products and services.

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Health Care Reform
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