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DFL and GOP legislators have reached a deal with the governor's office on extending the General Assistance Medical Care (GAMC) program and stopping the auto-enrollment of former GAMC recipients into MinnesotaCare.

Deal reached on GAMC extension

DFL and GOP legislators have reached a deal with the governor’s office on extending the General Assistance Medical Care (GAMC) program and stopping the auto-enrollment of former GAMC recipients into MinnesotaCare.

There will be a 4:30 press avail in the governor’s office to discuss details, but here are the outlines:

  • The deal assures no disruption in the continuity of the GAMC program, and will prevent its ill and indigent clientele from being transferred to MinnesotaCare, an insurance program for working adults whose employers don’t offer insurance. Thus it also takes off the table Gov. Tim Pawlenty‘s proposal for booting many single working adults off of MnCare.
  • The package, which comes with a reported price tag of $165-$170 million, will cover the period from March 1 of this year through the end of fiscal year 2011 next June for a general fund price of $71 million, and extend the coverage through the 2012-13 budget period for $131 million.
  • Bridge coverage through May 2010 will be funded with $28 million from the Health Care Access Fund.
  • The plan creates “coordinated care organizations” to administer services.
  • Provider payments, as reported at PIM yesterday, take extremely deep cuts–reportedly around 75 percent.
  • Prescription drug reimbursements are also cut in the plan, which caps those costs at $45 million for the remainder of the 2010-11 biennium and at $83 million for 2012-13.

“It’s good in that the coverage continues,” a senior DFL staffer tells PIM. “And stopping auto-enrollment means that a lot of other people won’t get kicked out of MinnesotaCare. But it might be best viewed as a down-payment on a real fix. Certainly a lot of people are going to be disappointed in the provider reimbursement rates.”


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