EBT and Healthcare

Minnesota Gov. Tim Pawlenty has unveiled his own healthcare reform package-and there may be a play for EBT in it.

The highlights of the governor's proposal include:

• Allowing Minnesotans for the first time to buy health insurance across state lines. As in many states a small number of insurers control a large part of the health insurance market. In Minnesota three insurers issue 80 percent of the policies. Many people think that allowing out-of-state insurers to sell policies in Minnesota will break this triopoly, leading to more competition and lower premiums.
• Creating an Interstate Health Insurance Compact that would create regulatory standards for selling policies across state lines.
• Mandating that the state's MinnesotaCare and Medicaid programs price care on quality and cost.

But most interesting to us is the proposal to include EBT in the healthcare reform package. Gov. Pawlenty is proposing creation of a higher-deductible insurance policy that would include a state subsidy deposited to an EBT account. It's unclear whether the existing Minnesota EBT card would be used, or whether the state would create a new healthcare EBT card.

Several states, including New York and Pennsylvania already use the EBT benefits card for Medicaid eligibility determination. But this would be the first time that an EBT card was used to actually transfer benefits to the card holder.

State lawmakers will be asked to consider the governor's healthcare proposal during its 2010 term.