Following negotiations, Governor Pawlenty and legislative leaders announced an agreement to provide continued health care for Minnesota’s low income population. The plan will replace General Assistance Medical Care (GAMC).
The agreement establishes substantial payment reforms to the state’s health care system.
Effective June 1, 2010, the plan creates a new hospital-based coordinated care delivery system in partnership with county agencies. Coordinating Care Organizations (CCO) will manage health care and provide medically necessary services for eligible Minnesota residents.  Capped block grants to CCO’s will be funded with $71 million from the state’s General Fund in FY 2010-11 and $131 million in FY 2012-13.
The Governor and legislators also agreed to establish a method to reimburse CCO’s for drug costs associated with medical care. Drug reimbursements would be capped at $45 million coming from the General Fund in FY 2010-11 and $83 million in FY 2012-13.
GAMC eligible individuals are low-income adults, ages 21-64, who have no dependent children and who do not qualify for federally funded health care programs.
Funding for the program was set to end April 1, 2010. When GAMC funding ended, enrollees were to be automatically moved to MinnesotaCare.
As it has become painfully obvious, the people of Minnesota are facing difficult times when it comes to health care, due to high unemployement and the cutbacks of small businesses.
The Governor’s attention to this issue is a step in the right direction until something is decided one way or another at the federal level.