Franken on Senate Health Care Reform Bill

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Provisions Franken Fought for to Protect Minnesota Included

Washington, D.C. -- Nov 19, 2009 – Today, U.S. Senator Al Franken (D-Minn.) offered praise for the Patient Protection and Affordable Care Act introduced last night by Senate Majority Leader Harry Reid (D-Nev.). The Patient Protection and Affordable Care Act contains several measures that Sen. Franken has been fighting for specifically, including two key cost-saving insurance regulations, an important reform of Medicare payment rates that would help Minnesota, and a reduced medical device tax rate.

“This bill successfully addresses some of the very worst flaws in our health care system,” said Sen. Franken. “It ends discrimination by insurance companies, reduces the national deficit, and protects Minnesota interests. As we move forward, I will be working not just to protect the good foundation laid out last night, I will be working to make any improvements necessary to ensure that Minnesota families can afford and receive secure coverage and quality care.”

The bill incorporates provisions from Sen. Franken’s Fairness in Health Insurance Act that require health insurance companies to spend a set portion of their insurance premium dollars on actual health care services, as opposed to marketing campaigns, CEO salaries, and administrative costs. This portion of the dollar, known in the industry as “medical loss ratio,” has been set at 80 cents for group health plans and 75 cents for individual plans. Franken said he was encouraged by this inclusion, though he will press to raise the ratio to 90 cents, the level set out in his own legislation.

“Minnesota families need to know that when they send their health insurance premium dollars to their insurance companies, that money is being spent on making and keeping them healthy – not on bloated profits, bonuses, or advertising,” said Sen. Franken. “This was a common-sense solution I was proud to fight for and I’m thrilled to see it included in our Senate bill. It’s going to go a long way toward improving care and holding insurance companies accountable.”

Because of the complexity of health care in this country, there are billions of administrative transactions between health care providers, payers, intermediaries, and vendors. Right now, these systems are not standardized, resulting in an unnecessary and costly burden on providers and patients. The Patient Protection and Affordable Care Act includes measures Sen. Franken asked for to reduce paperwork and save money by establishing a uniform standard for insurance claims.

“Doctors and nurses should spend their time and resources dealing with patients, not paperwork,” said Sen. Franken. “Minnesota has been a leader in simplifying administrative processes and that’s why I fought to see our success included in the bill. If the rest of the nation follows our example, we can save this country billions.”

The “Value Index” provision, championed by both Sen. Franken and Sen. Amy Klobuchar (D-Minn.) was also included in the merged Senate bill. This would set Medicare reimbursement rates to reward health care providers for quality of care as opposed to quantity, more fairly compensating the high quality Minnesota providers.

“This is a huge win for Minnesota,” said Sen. Franken. “Our providers shouldn’t be punished for their effectiveness and with the inclusion of this measure, we know they won’t be.”

The Minnesota Senators also fought successfully to cut in half the $400 billion tax on medical device companies proposed in the Senate Finance Committee bill.

“The medical device industry creates jobs, fosters innovation, and saves lives,” said Sen. Franken. “It was important to make sure they weren’t unfairly burdened by national health care reform and I believe we’ve come to a good compromise.”

Source: Senator Al Franken