Minnesota Farmers Union leaders are monitoring state lawmakers as they work to address escalating health insurance costs in the state. Both Governor Mark Dayton and lawmakers agree that $300 million in state support is needed to help solve the problem. However, Farmers Union Government Relations Director Thom Petersen says the two sides disagree on a plan to get there.

The Republican plan would dole out the $300 million based upon income. Plus, there would be a 30-percent cut to monthly premiums for families who make three times the poverty level and those making more than that would see a reduction of 25-percent or less. The Governor’s plan would give the $300 million directly to health insurance companies. Petersen says it’s essential they agree on the amount needed.

He says the cost of health insurance is a problem that effects mostly rural Minnesota.

Governor Dayton says the Republican plan is too cumbersome. He says it could cost up to $20 million to implement and it would take a whole year to get off the ground and start sending out payments.