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Projecting health care costs and measuring savings

By June 1, 2009, the Commissioner of Health is required to calculate and publish annual projected private and public health care spending for residents of Minnesota for 2008 and the next 10 years. The projections will be based on national projections from the Centers for Medicare and Medicaid Services, with adjustments to reflect demographics, health status, and other Minnesota-specific factors deemed necessary by the Commissioner. The Commissioner will contract with an actuarial consultant to make recommendations for the adjustments, and may adjust the projected baseline as necessary in the future. The projections will exclude Medicare and long-term care spending.

Beginning June 1, 2010, the Commissioner of Health must publish estimates for actual public and private health care spending for the calendar year two years prior to the current year. The spending estimates must be certified by an actuarial consultant. The Commissioner must also determine the difference between actual and projected spending, and calculate the percentage of any estimated aggregate savings accruing to state-administered health care programs.

When accumulated savings accruing to state-administered health care programs reach $50 million, the Commissioner of Finance must transfer $50 million from the general fund to the health care access fund.

Updated Tuesday, November 30, 2010 at 04:22PM