Health Care

Aligning incentives to deliver greater value 

Health care costs represent an enormous challenge for everyone in Minnesota – employers, individuals and state government. In fact, the growth in total health care spending in our state has increased from $20 billion in 2000, to nearly $30 billion in 2010 – and is expected to double in the next decade, reaching $76 billion by 2020.

Further, the challenges posed by the growth in health care spending are amplified by uncertainty in the market due to substantial policy changes associated with the Patient Protection and Affordable Care Act (ACA) as well as continuing state reforms.

Despite these challenges, Minnesota continues to be a national leader in health care. We have among the lowest rate of uninsured, a high rate of private insurance, and a relatively healthy population. Also, while health spending growth on a national level has been slowing, Minnesota has experienced a sharper decline in the growth rate. While the ACA makes progress on some reforms, Minnesota is still ahead of the nation in terms of bending the cost curve and providing high quality care to its citizens.

Minnesota must continue to pursue a balanced approach to reform in order to ensure a functioning, responsive health care marketplace that will achieve optimal health outcomes, reduce the cost of health care, reduce the rate of future cost increases and increase access to affordable care for all Minnesotans.

To create a sustainable system that provides higher quality care at a lower cost, the Minnesota Business Partnership advocates for comprehensive reforms that engage consumers, align purchasers and reorient providers and insurers to find and deliver market-driven efficiencies and permanent health savings.

Health Care Principles for Reform:

  • Identify the appropriate roles for both the private sector and government in our health care market.
  • Provide price and quality information that is relevant and actionable to enhance informed decisions by all stakeholders.
  • Pay for results and outcomes, not volume of procedures.
  • Restructure regulations and mandates that inhibit innovation in coverage and care delivery.
  • Develop, use and expand incentives for health and well-being.

A copy of the 2013 Health Policy Blueprint can be found here.

For more information, contact Health Policy Director Beth McMullen.