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| Date: | December 12, 2012 | | Contact Name: | Amy Strenge | | Contact Phone: | 651-296-5252 | | Contact Email: | amy.hulstein@senate.mn | | For Immediate Release | |
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| SEN. THOMPSON, REP. SWEDZINSKI LEGISLATION SAVES STATE $4 MILLION |
ST. PAUL – A new law chief-authored by State Senator Dave Thompson (R-Lakeville) and co-authored by State Representative Chris Swedzinski (R-Marshall) has led to $4 million in savings to Minnesota taxpayers.
The legislation directed the Minnesota Management and Budget (MMB) Office to request state employees to verify eligible dependents that were receiving state-paid medical benefits.
“The hard work is paying off. Just last week we learned that we had a $2.5 billion budget surplus this biennium and a significantly improved outlook for the next biennium. Now we’re seeing even more results from reforms enacted during the last two years. By finding efficiencies and prioritizing spending without raising taxes, we can make government work smarter for Minnesotans instead of making Minnesotans work harder for government,” said Sen. Thompson.
The MMB report estimated $4 billion in medical plan savings for calendar year 2012 after considering the cost of the audit. This savings is attributed to all funds that support the cost of an employee and all participating entities. The General Fund dollars represent approximately 32 percent of contributions to the programs.
The report found that 4,218 dependents of state workers were not eligible to receive health benefits, though some may be reinstated because state employees didn't submit the appropriate paperwork by the audit's deadline.
“The goal of the proposal was to identify any ineligible dependents and ensure Minnesota’s tax dollars were being spent wisely,” Rep. Swedzinski said. “$4 million in savings is certainly welcome news and proof that the program works.”
