A preliminary audit of the state’s Medicaid rates released on March 1 determined that they were “actuarially sound.” That’s the finding that Minnesota Department of Human Services Commissioner Lucinda Jesson repeatedly stressed during a phone call with reporters the day the report was released.

Department of Human Services Commissioner Lucinda Jesson set off a potential landmine last week when she revealed that the federal government is investigating the state’s Medicaid program. Roughly 600,000 poor people receive medical coverage through the program with the state and federal government splitting the $7B tab.

If you only read the first paragraph of the Wednesday page one Strib story about Gov. Tim Pawlenty's executive order on federal health care money, you could be excused for thinking something actually happened.

A coalition that advocates for a single-payer health insurance system set up a “free clinic” outside Gov. Tim Pawlenty’s office on Tuesday.

Officials at Hennepin County Medical Center have reportedly rejected the "coordinated care organization" contract proffered by the state Department of Human Services in conjunction with the much-maligned General Assistance Medical Care (GAMC) compromise bill passed by the Legislature earlier this session.

Slightly more than three weeks ago, on March 26, Gov. Tim Pawlenty signed a compromise bill that kept alive the general assistance medical care (GAMC) program.

The 2,400 page federal health care bill will likely take state budget officials months to parse thoroughly. Nobody knows at this point exactly how much money will will ultimately trickle down to Minnesota's coffers. But it seems highly likely that additional potential revenue streams will be discovered as the legislation is reviewed.

It will be some time before anyone at the Capitol complex can claim an authoritative grasp of what the new federal laws mean for Minnesota's near- and long-term general fund budget troubles. But in the meantime, legislative fiscal analysts suggest the truth is different from the early claims of both Democrats and Republicans.

State GOP pols don't want the federal health care proposal to wash up on Minnesota's shores. DFLers in the Legislature, however, said there's $3 billion in reasons the state needs the bill to pass.

"It really depends on how you look at it," one lobbyist sighed. "It's true that the cuts are huge. But as a provider, I'm looking at getting a quarter of a loaf when the plate is empty otherwise. I'm getting enough to eat and survive for the next 15 months."