In Brief: Minnesota Blues Delays Payment Cuts To Rural Hospitals; Large Majority of Minnesotans Support Big Raise In Tobacco Tax

Minnesota Blues Delays Payment Cuts To Rural Hospitals

Blue Cross and Blue Shield of Minnesota have delayed the implementation of a plan that would cut payments to dozens of rural hospitals by hundreds of thousands of dollars.

The insurer had announced earlier this year that it was shifting from a system of negotiated discounts with the state's rural, critical access hospitals to a system that would be based more on what it said were the needs of the patient. The plan was originally slated to go into effect on May 1.

In addition to the delay, officials with the Minnesota Blues said they would meet with operators of the hospitals, help pay their software licensing fees, and provide a “safety net” for those more financially precarious institutions by making sure they received payments that covered the cost of care for patients.

“Critical access hospitals play a vital role in Minnesota's healthcare delivery system, providing important services to the communities they serve every day. Blue Cross remains committed to continuing the challenging, but necessary conversation about the connection between escalating health care prices and the affordability of insurance coverage,” the Minnesota Blues said in a statement.

Large Majority of Minnesotans Support Big Raise In Tobacco Tax

Two-thirds of Minnesotans say they support raising the tobacco tax by $1.50 per pack to close the state's deficit and expand current smoking prevention programs.

The poll of 625 Minnesotans, which was conducted by Decision Resources Ltd. On behalf of the Raise It For Health Coalition, found bipartisan support for raising the tax.

"There is broad agreement among Minnesotans on this issue," said Decision Resources President Bill Morris. "Unlike the results we see for many other tax questions, a solid majority from virtually every demographic group in the state including gender, age, income level and geography supports raising the tax by $1.50."

According to the Campaign for Tobacco Free Kids and the American Cancer Society Cancer Action Network, a $1.50 per pack increase in the state's cigarette tax would prevent 47,700 Minnesota kids from becoming addicted adults, help 36,600 current smokers quit and save 27,700 Minnesotans from premature smoking-related deaths.

Gov. Mark Dayton included a cigarette tax increase in his current budget proposal, and proposed Senate and House bills include a hike on the tobacco tax.