ST. PAUL Minnesota already is on track to establish a new way for its residents to buy health insurance, and now legislators are poised to change how the state takes care of its elderly, disabled and poor.

Senators debated late Thursday night their plan to spend $11.2 billion in the next two years for health care, which is second only to public school funding in the $38 billion state budget.

The plan by Sen. Tony Lourey, DFL-Kerrick, builds on the federal Affordable Care Act, also known as Obamacare. State leaders this year established a federally required online health insurance sales program, which in several ways is tied to the Lourey bill.

Lourey said he was disappointed when handed a spending target $150 million less than in the current budget. It was much lower than I was hoping for.

However, he said, his committee was able to craft a bill that cuts no state-provided health care.

We raised some revenue in innovative ways, he said, including gaining $80 million by adding a surcharge on HMO revenues.

The bill would increase rates for nursing homes and other long-term care programs by 2 percent in 2015.

Republicans said Loureys bill does too little to help nursing homes and other long-term care programs.

The long-term care industry says it would be better off with current law, said Sen. Julie Rosen, R-Fairmont.

Some of the 115-plus nursing homes in financial crisis could be forced to close, Rosen said. Its going to be very, very tough.

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Lawmakers set to make more health care changes