Statement on Medica money transfer: Elected officials must check the power of health insurance executives
Contact: Kenza Hadj-Moussa, 612-386-9556
October 20, 2017
NEWS STATEMENT
While Trump sabotages the ACA, Medica’s for-profit company benefits from chaos
(St. Paul)—On Thursday, the Star Tribune revealed that Medica has funneled $120 million in public-interest assets from its nonprofit entity to for-profit companies. The news set off a firestorm of anger, as health care problems mount in Minnesota.
This week, it became clear that Minnesota needs to brace itself for losing $369 million in federal funding for MinnesotaCare. The cuts came because of reinsurance: a no strings attached bailout for insurance companies—including Medica—passed by Republicans in the Legislature this year.
“Minnesota has lost its compass. In what other industry would we let this happen?” said Dan McGrath, executive director of TakeAction Minnesota. “President Trump is sabotaging the Affordable Care Act. Frankly, Medica is taking advantage of the chaos. Where are the elected officials saying we’ve had enough?”
Medica was able to funnel the money because of a new state law passed by Republicans and industry insiders this year.
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TakeAction Minnesota is a statewide, multi-racial people’s organization. We advance democracy and equity through organizing, political action, and policy campaigns.
