TakeAction Minnesota, a coalition of progressive groups, said that today's announcement of a 1 percent cap on profits for health plans doing business with the state is a good start but doesn't go far enough.

The cap doesn't address the profits accumulated over the years by the health plans — overpayments that amount to more than $2.5 billion, says TakeAction.

Said the group in a statement:

“Today, Governor Dayton has continued to demonstrate his commitment to making sure Minnesota’s taxpayer funds are spent wisely. On the heels of new figures released by Minnesota’s health plans last Friday — numbers which demonstrate substantial growth in health plan reserves — Governor Dayton has shown his commitment to the stewardship of taxpayer funds during the state’s massive budget crisis.

"But the new agreement stops short of addressing the years of overpayments into the state’s health plans, including the significant HMO profits reported for 2010. Years of overpayments have allowed the health plans to amass $2.5 billion in reserve funds. Today’s agreement leaves those funds untouched.

"Minnesota’s budget crisis is immediate, and calls for immediate solutions. Proposals currently on the table from the GOP leadership would cut thousands of Minnesotans off health care. No Minnesotan should lose their health coverage while millions of taxpayer funds are allowed to languish in HMO bank accounts.”