Minnesota Gov. Pawlenty Proposes State Health Care System Changes, Including Tax Credits, HSAs

Minnesota Gov. Tim Pawlenty (R) on Tuesday said that legislation being considered to overhaul the state's health care system should include health savings accounts and tax credits as a way to reduce costs for residents who purchase private health insurance, the Minneapolis Star Tribune reports. The measures are similar to those that
presumptive Republican presidential nominee Sen. John McCain (Ariz.) proposed on Monday under his health care plan, which aims to expand health care through "market-based competition," the Star Tribune reports. Pawlenty proposed the measures to a legislative conference committee that is trying to resolve differences between similar versions of a health care bill approved by the state House and Senate.

Brian McClung, a spokesperson for Pawlenty, said that the tax credits would be offered to individual residents and small-business owners as an alternative to expanding public health programs, such as MinnesotaCare. Pawlenty also proposed offering HSAs to state employees. However, Jim Monroe, executive director of the Minnesota Association of Professional Employees, said that idea "won't fly very far with unions."

Conference committee co-chairs Rep. Tom Huntley (D) and Sen. Linda Berglin (D) were divided on how Pawlenty's proposals are helping to shape the health care legislation. Huntley said, "I'm very optimistic. I think we're moving much closer to a bill that we can pass and the governor will sign." However, Berglin said, "An awful lot is pretty vague," adding, "A tax credit sounds fine but won't really help people much" (Wolfe, Minneapolis Star Tribune, 4/30).