For over a year, Attorney General Mike Hatch conducted an audit of Allina Health Systems, alleging that the health care company overspent millions on administrative costs and wasted millions more on executive perks. But as lawmakers begin to hold hearings on Hatch's findings, employers and workers say they're more concerned with rising health insurance rates. Legislators say there's no easy answer to rein in health-care costs. They're looking at several ideas that might have an impact, but there's no consensus on what will work.
•The Problem
The state Health Department says premiums increased 16 percent in the last year on top of annual increases since 1997. Many experts say if the trend continues employers may stop offering coverage or look for alternatives to managed care.
•The Fix
Legislators say there's no easy answer to rein in health-care costs. They're looking at several ideas that might have an impact, but there's no consensus on what will work.
•The Alternatives
The University of Minnesota has offered its employees a variety of health insurance options in an effort to control costs while maintaining health care access.
Recent health care coverage from MPR
Senator wants more oversight of health care industry
Oct. 30, 2001 — The chairman of the state Senate Finance Committee is calling on state agencies to get tougher with the state's health care providers. The committee held a hearing Tuesday on Attorney General Mike Hatch's audit of Allina Health Systems. Senate Finance Chairman Doug Johnson says legislators need to meet with Gov. Ventura's staff to come up with a better way to monitor how HMOs spend their money. Meanwhile, officials at both Allina and Medica say they will lay off workers as a result of Hatch's investigation.
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Hatch releases Allina audit
Sept. 24, 2001 — Minnesota Attorney General Mike Hatch has released his year-and-a-half-long investigation into the state's largest health-care organization, Allina Health System. At the same time, Allina announced it's agreed to pay $16 million to settle a federal investigation into improper billing. The two actions end the state and federal probes into Allina, and the company says it's trying to move forward with new management and policies preventing wasteful spending.
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Local hospitals examine emergency preparedness
Sept. 18, 2001 — Emergency room physicians say hospitals throughout the state are re-examining their emergency plans after September's terrorist attacks. Doctors say a large patient load like those seen on the East Coast could stretch their resources.
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