Star Tribune
Ban hospitals, clinics from cutting off patients with unpaid medical bills
Gov. Tim Walz and DFL lawmakers want to reduce the pain of medical debt on Minnesotans by restricting collection activities and banning hospitals and clinics from denying non-emergency care to patients with substantial overdue bills.
Restrictions are needed to protect patients from suffering financial ruin on top of the severe or chronic diseases that necessitated their medical care, Walz said in a Capitol press conference Friday.
“Credit card debt to buy a television is one thing,” Walz said. “Debt because you have a heart attack or get hit by a car or have an illness is an entirely different thing. And the idea that we are charging massive interest on that or reporting it to a credit bureau and we’re destroying lives over it makes absolutely no sense.”
Hospitals already limit their collection activities through a voluntary agreement with the state Attorney General, but the legislation would make those limits permanent and expand them to clinics and outpatient facilities. Proposals include reducing interest on medical debts to 0%, preventing creditors from intercepting tax refunds from delinquent patients and relieving spouses from liability for their partners’ overdue bills.
Minneapolis-based Allina Health ended its practice of denying non-emergency care to patients with substantial unpaid debts after it faced public scrutiny, but other systems such as HealthPartners and Mayo Clinic have used it in limited circumstances. Minnesotans came to the rescue last summer of a pregnant woman in Glencoe, Minn., donating money to prevent her from losing access to local medical care because of unpaid bills.
The proposals could present challenges for an increasingly vulnerable network of hospitals and clinics in Minnesota, which is struggling with the costs of a nursing shortage and the boarding of patients who get stuck in inpatient beds because there is no space for them in nursing homes or rehab facilities.
Hospital operators collectively wrote off $475 million as bad or unpaid patient debts in 2022, according to newly released financial data. While that represents less than 1% of what they charged patients, it deepens financial concerns when considering that 41 of 128 hospitals in Minnesota operated at a loss that year.
Minnesota appears to have less of a problem with medical debts than other states, with the Urban Institute estimating that 2% of Minnesota adults have medical debts in collections, compared to 13% of adults nationwide. However, that widely-cited national figure is based on medical debts reported to credit rating agencies — and Minnesota hospitals don’t report debts to those agencies under their agreement with the attorney general.
DFL lawmakers want to ban all hospitals and clinics from reporting debts to agencies, arguing that medical debts are different from consumer debts because they involve surgeries or treatments over which patients often have no choice. Walz called that practice “unconscionable” and supported the ban in the legislation, titled the Medical Debt Fairness Act.
Walt Myers of Lakeville supported the provision that would prevent spousal liability for medical debt, having experienced this unusual allowance in Minnesota law that saddled him with thousands of dollars in unpaid bills from his late wife’s breast cancer treatment. It took months and stress to resolve $135,000 in debts, he said at the news conference. The legislation would have prevented that financial fight amid his grief.
“Unfortunately, I’m finding my story isn’t that uncommon,” he said.
The average medical debt lawsuit in Minnesota involved about $1,500, according to a review last fall of business-to-consumer cases filed since 2011. Attorney General Keith Ellison and the Minnesota State Bar Association revealed that finding, which suggests that the problem of medical debt goes beyond patients with extreme conditions such as cancer or major surgeries from traumatic accidents.
Many patients with unpaid debts can’t afford routine medical expenses, even if they have insurance, because the deductibles and cost-sharing requirements can be unaffordable, the report showed.
“If you borrow money, you should pay it back,” Ellison said at Friday’s announcement. “We all agree on that, but we should also agree we shouldn’t punish people for getting sick.”
One concern is that medical debts prompt Minnesotans to refrain from other forms of medical care they need, worsening their health and resulting in even more expensive emergency care and surgeries over time. Lt. Gov. Peggy Flanagan said she recalled as a child “feeling guilty” when she got sick at a time when medical bills drove her mother to file bankruptcy.
Medical providers sometimes write off debts entirely, or sell them at pennies on the dollar to collection agencies that then try to gain payment. A new option has emerged with RIP Medical Debt, a charitable organization that purchases debts at reduced cost from providers and then cancels them.
The organization has erased nearly $31 million in medical debts for almost 33,000 Minnesotans.
Star Tribune
Former Medtronic consultant gets 18 months federal prison for insider trading
A former Medtronic consultant received an 18-month prison sentence this week for his role in a scheme linked to the $1.6 billion acquisition of an Israeli medical device company in 2018.
A federal jury in February convicted Doron “Ron” Tavlin, 69, of Minneapolis, of one count of conspiracy to engage in insider trading and 10 additional counts related to securities fraud. That same jury found David Jay Gantman, 58, of Mendota Heights, not guilty of all charges against him. A third defendant — Afshin “Alex” Farahan, 57, of Los Angeles — pleaded guilty in 2022 and has yet to be sentenced.
“His crime was cynical and brazen. It was also reckless,” Assistant U.S. Attorney Matthew Ebert wrote in a memo calling for a 3-year prison term. “Tavlin’s conduct had the potential to blow up a deal that a team of executives and financial advisers had been diligently negotiating for months.”
Tavlin is now scheduled to self-surrender Jan. 5 to begin his prison term, which will be followed by 320 hours of community service.
According to the evidence presented at trial, Tavlin learned about a secret, pending acquisition by Medtronic of Mazor Robotics, where he worked as vice president of business development, in 2018. Tavlin also previously worked as a consultant to the Ireland-based Medtronic, which also has a headquarters in Fridley.
Tavlin illegally tipped off Farahan, his friend, about news of the imminent acquisition and told him to keep the news secret. Farahan knew the deal would likely result in a boost to Mazor’s stock price and quickly bought more than $1 million of the company’s stock throughout August and September 2018. Medtronic announced plans to acquire Mazor, which specialized in robotics for spinal procedures, in September 2018 and the deal closed three months later.
Prosecutors said Farahan netted more than $245,000, and Gantman made $255,000 in profit by selling the securities quickly after the deal was publicized. Farahan paid Tavlin for the secret information about the pending deal — including a $25,000 kickback about a year later —according to prosecutors.
U.S. District Judge Donovan Frank, who sentenced Tavlin Monday, also ordered Tavlin to pay a special assessment fee of $1,100 – or $100 per each count. Frank did not impose a fine.
Star Tribune
Charges detail assault in Minneapolis that led to shooting rampage, killing one in Kandiyohi County
Another friend of the ex-girlfriend arrived to help. He pulled up in a car as the group exited the apartment and Matariyeh immediately pointed a gun at him before pounding on the windshield with the gun. Everyone fled as Matariyeh ran back inside the apartment.
The two men met in a parking lot before attempting to return to the apartment. That’s when they looked up and saw Matariyeh on the balcony. Matariyeh immediately began firing multiple shots at them as they took cover behind parked cars.
It was around this time that Minneapolis police officers arrived and made contact with Matariyeh’s ex-girlfriend. She believed he was still inside the apartment, but officers later learned that he had fled. They reached him on the phone. He told officers he was going to kill innocent people if he couldn’t speak with his ex-girlfriend or see his daughter, who was at daycare at the time. He later told police negotiators that “he wanted to go out by ‘suicide by cop.’”
All the while, Matariyeh was speeding westbound.
Police officers pursued him near Cosmos in Meeker County after being alerted that Matariyeh might have stolen another vehicle at gunpoint in Carver County.
Around 2 p.m. he pulled into the rural driveway of Peter Mayerchak in Lake Lillian. Mayerchak, who was in his yard placing hay over his septic mound, went and greeted Matariyeh, who shot him in the chest.
Star Tribune
DFL’s last-minute push to keep their trifecta
Mixing progressive dreams with dire warnings, a group of DFL leaders riled up a group of volunteers in St. Paul on Thursday morning, urging them to push on through the day’s freezing rain and fatigue in the remaining days before the election.
Several elected officials including Lt. Gov. Peggy Flanagan and U.S. Sen. Amy Klobuchar told the group of about 150 campaign staffers, volunteers and union members about how meaningful their work is to keeping DFL control of the Legislature, as the electeds start a statewide bus tour to turn out votes.
“We are here to keep our trifecta here in Minnesota,” U.S. Rep. Ilhan Omar told volunteers on Thursday. “We’ve got five days, people!”
On the Republican side, House Minority Leader Lisa Demuth, R-Cold Spring, said earlier this month that the House Republican Campaign Committee had raised a record $2.7 million ahead of the election and she said Republicans have also set records in volunteering and door-knocking as they work to break DFL control.
Minnesota Democrats hold a rally before starting a bus tour around the state to get voters excited, including Rep Ilhan Omar, Sen Amy Klobuchar, Lt. Gov. Peggy Flanagan, House Speaker Melissa Hortman, Senate Majority Leader Erin Murphy, Rep Betty McCollum and Sen Tina Smith on Thursday. (Glen Stubbe/The Minnesota Star Tribune)
“Republicans have the momentum and resources heading into the final stretch to win the majority and restore balance to Minnesota,” Demuth said in a statement. “Minnesotans are ready to move on from the expensive two years of Democrat one-party rule.”
House Speaker Melissa Hortman, DFL-Brooklyn Park, said she thought voters preferred action to the gridlock of divided government. “They’re looking for people who can get things done,” she said.
These last-minute get-out-the-vote efforts come as Democrats around the country push to keep control of state legislative chambers and try to flip a few statehouses that Republicans hold by just a few seats.
The Democratic Legislative Campaign Committee, the arm of the national Democratic party that works on statehouse races across the country, has spent $500,000 on Minnesota races this year, including House races and the state Senate contest.