Minnesota Legislature
HF 8
Conference Committee Report - 87th Legislature (2011 - 2012) Posted on 04/27/2012 09:38pm
KEY: stricken = removed, old language.
underscored = added, new language.
1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 8
1.3relating to human services; establishing the healthy Minnesota contribution
1.4program; requiring plan to redesign service delivery for lower-income
1.5MinnesotaCare enrollees; requiring the Minnesota Comprehensive Health
1.6Association to offer a high-deductible, basic plan; requiring the commissioner
1.7of human services to seek federal waivers;amending Minnesota Statutes 2010,
1.8sections 62E.08, subdivision 1; 62E.14, by adding a subdivision; 256B.04,
1.9subdivision 18; 256L.05, by adding a subdivision; proposing coding for new law
1.10in Minnesota Statutes, chapters 62E; 256L.
1.11April 27, 2012
1.12The Honorable Kurt Zellers
1.13Speaker of the House of Representatives
1.14The Honorable Michelle L. Fischbach
1.15President of the Senate
1.16We, the undersigned conferees for H. F. No. 8 report that we have agreed upon the
1.17items in dispute and recommend as follows:
1.18That the Senate recede from its amendment and that H. F. No. 8 be further amended
1.19as follows:
1.20Delete everything after the enacting clause and insert:
1.21 "Section 1. [62V.01] DEFINITIONS.
1.22 Subdivision 1. Scope of definitions. For purposes of this act, the terms defined
1.23in this section have the meanings given.
1.24 Subd. 2. Commissioner. "Commissioner" means the commissioner of commerce.
1.25 Subd. 3. Dependent. "Dependent" means an individual's spouse or tax dependent.
1.26 Subd. 4. Health insurance. "Health insurance" means an individual health plan, as
1.27defined in section 62A.011, subdivision 3, including coverage issued by the Minnesota
1.28Comprehensive Health Association under sections 62E.08 to 62E.19.
1.29 Subd. 5. Trustee. "Trustee" means an entity that has trust powers under state or
1.30federal law.
2.1 Subd. 6. Unified personal health premium account or account. "Unified personal
2.2health premium account" or "account" means a trust account created for the purpose of
2.3receiving funds from multiple sources for the payment of, or reimbursement for, health
2.4insurance premiums.
2.5 Subd. 7. Unified personal health premium account administrator or
2.6administrator. "Unified personal health premium account administrator" or
2.7"administrator" means an entity that has the authority to administer a unified personal
2.8health premium account.
2.9 Sec. 2. [62V.02] REGISTRATION REQUIRED.
2.10(a) Only a private-sector entity or individual registered with the commissioner as
2.11a unified personal health premium account administrator may administer an account on
2.12behalf of a resident of this state.
2.13(b) To register under this section, a private sector entity or individual must be:
2.14(1) a licensed insurance producer, as defined in section 60K.31, subdivision 6, under
2.15the insurance authority described in section 60K.38, subdivision 1, paragraph (b), clause
2.16(1), (2), or (5);
2.17(2) a licensed vendor of risk management services or entity administering a
2.18self-insurance or insurance plan under section 60A.23, subdivision 8; or
2.19(3) a federally or state-chartered bank or credit union.
2.20(c) An applicant for registration under this section shall pay a fee of $250 for initial
2.21registration and $50 for each three-year renewal.
2.22 Sec. 3. [62V.03] REQUIREMENTS; ADMINISTRATION OF UNIFIED
2.23PERSONAL HEALTH PREMIUM ACCOUNT.
2.24 Subdivision 1. Nature of arrangements. (a) Administrators of a unified personal
2.25health premium account under contract with an employer must conduct business in
2.26accordance with a written contract.
2.27(b) Administrators may conduct business directly with individuals in accordance
2.28with a written agreement.
2.29(c) The written agreement between a unified personal health premium account
2.30administrator and its customer must specify the services to be provided to the customer,
2.31the payment for each service including administrative costs, and the timing and method of
2.32each payment or type of payment.
3.1(d) An administrator must separately disclose to the beneficiary of the account in
3.2writing any payment from an insurer, financial institution, or other business entity received
3.3in connection with the administration of the account.
3.4(e) An administrator may administer unified personal health premium accounts
3.5separately or in conjunction with other employee benefit services, including services
3.6that facilitate and coordinate tax-preferred payments for health care and coverage under
3.7Internal Revenue Code, sections 105, 106, and 125.
3.8(f) An administrator shall create and maintain records of receipts, payments, and
3.9other transactions, sufficient to enable the individual to benefit from tax advantages
3.10available to the individual under Internal Revenue Code, sections 105, 106, 125, and other
3.11relevant sections, and under Minnesota income tax law, for health insurance paid by or on
3.12behalf of the individual. The administrator shall identify and notify the account holder and
3.13contributors of any applicable tax subsidies and tax credits for which the account holder or
3.14contributor qualifies in connection with the account or items paid for through the account.
3.15The records and procedures must be capable of segregating funds to maintain restrictions
3.16on the funds received from contributors.
3.17(g) Individual insurance market products paid for through the account under this
3.18section are not an employer-sponsored plan subject to state or federal group insurance
3.19market requirements.
3.20 Subd. 2. Trust account requirements. (a) Contributions to an individual's account
3.21may be made by the individual, the individual's employer or former employer, the
3.22individual's family members or dependents, charitable organizations, or any other source.
3.23(b) Tax-preferred contributions under Internal Revenue Code, sections 105 and 106,
3.24must be maintained in a separate account.
3.25(c) A trust created and trustees appointed under this act shall:
3.26(1) have the powers granted under, and shall comply with, the provisions of chapter
3.27501B that are relevant to a trust created for purposes of this act;
3.28(2) allow for financial contributions from multiple sources;
3.29(3) make funds available for the payment of premiums on any type of health
3.30insurance included in section 62V.01, subdivision 4, from any insurance company, subject
3.31to any restriction under paragraph (b);
3.32(4) permit the administrator to draw funds from the account for the payment or
3.33reimbursement of health insurance premiums under a written agreement with the owner
3.34of the account;
3.35(5) segregate funds to maintain restrictions on the funds received from contributors;
3.36and
4.1(6) guarantee that funds contributed by an employer will remain available to the
4.2account holder after the account holder's term of employment with the employer ends.
4.3 Sec. 4. REPEALER.
4.4Minnesota Statutes 2010, section 62L.12, subdivisions 3 and 4, are repealed.
4.5 Sec. 5. EFFECTIVE DATE.
4.6This act is effective the day following final enactment."
4.7Delete the title and insert:
4.9relating to insurance; permitting certain entities to administer unified personal
4.10health premium accounts;proposing coding for new law as Minnesota Statutes,
4.11chapter 62V; repealing Minnesota Statutes 2010, section 62L.12, subdivisions
4.123, 4."
1.3relating to human services; establishing the healthy Minnesota contribution
1.4program; requiring plan to redesign service delivery for lower-income
1.5MinnesotaCare enrollees; requiring the Minnesota Comprehensive Health
1.6Association to offer a high-deductible, basic plan; requiring the commissioner
1.7of human services to seek federal waivers;amending Minnesota Statutes 2010,
1.8sections 62E.08, subdivision 1; 62E.14, by adding a subdivision; 256B.04,
1.9subdivision 18; 256L.05, by adding a subdivision; proposing coding for new law
1.10in Minnesota Statutes, chapters 62E; 256L.
1.11April 27, 2012
1.12The Honorable Kurt Zellers
1.13Speaker of the House of Representatives
1.14The Honorable Michelle L. Fischbach
1.15President of the Senate
1.16We, the undersigned conferees for H. F. No. 8 report that we have agreed upon the
1.17items in dispute and recommend as follows:
1.18That the Senate recede from its amendment and that H. F. No. 8 be further amended
1.19as follows:
1.20Delete everything after the enacting clause and insert:
1.21 "Section 1. [62V.01] DEFINITIONS.
1.22 Subdivision 1. Scope of definitions. For purposes of this act, the terms defined
1.23in this section have the meanings given.
1.24 Subd. 2. Commissioner. "Commissioner" means the commissioner of commerce.
1.25 Subd. 3. Dependent. "Dependent" means an individual's spouse or tax dependent.
1.26 Subd. 4. Health insurance. "Health insurance" means an individual health plan, as
1.27defined in section 62A.011, subdivision 3, including coverage issued by the Minnesota
1.28Comprehensive Health Association under sections 62E.08 to 62E.19.
1.29 Subd. 5. Trustee. "Trustee" means an entity that has trust powers under state or
1.30federal law.
2.1 Subd. 6. Unified personal health premium account or account. "Unified personal
2.2health premium account" or "account" means a trust account created for the purpose of
2.3receiving funds from multiple sources for the payment of, or reimbursement for, health
2.4insurance premiums.
2.5 Subd. 7. Unified personal health premium account administrator or
2.6administrator. "Unified personal health premium account administrator" or
2.7"administrator" means an entity that has the authority to administer a unified personal
2.8health premium account.
2.9 Sec. 2. [62V.02] REGISTRATION REQUIRED.
2.10(a) Only a private-sector entity or individual registered with the commissioner as
2.11a unified personal health premium account administrator may administer an account on
2.12behalf of a resident of this state.
2.13(b) To register under this section, a private sector entity or individual must be:
2.14(1) a licensed insurance producer, as defined in section 60K.31, subdivision 6, under
2.15the insurance authority described in section 60K.38, subdivision 1, paragraph (b), clause
2.16(1), (2), or (5);
2.17(2) a licensed vendor of risk management services or entity administering a
2.18self-insurance or insurance plan under section 60A.23, subdivision 8; or
2.19(3) a federally or state-chartered bank or credit union.
2.20(c) An applicant for registration under this section shall pay a fee of $250 for initial
2.21registration and $50 for each three-year renewal.
2.22 Sec. 3. [62V.03] REQUIREMENTS; ADMINISTRATION OF UNIFIED
2.23PERSONAL HEALTH PREMIUM ACCOUNT.
2.24 Subdivision 1. Nature of arrangements. (a) Administrators of a unified personal
2.25health premium account under contract with an employer must conduct business in
2.26accordance with a written contract.
2.27(b) Administrators may conduct business directly with individuals in accordance
2.28with a written agreement.
2.29(c) The written agreement between a unified personal health premium account
2.30administrator and its customer must specify the services to be provided to the customer,
2.31the payment for each service including administrative costs, and the timing and method of
2.32each payment or type of payment.
3.1(d) An administrator must separately disclose to the beneficiary of the account in
3.2writing any payment from an insurer, financial institution, or other business entity received
3.3in connection with the administration of the account.
3.4(e) An administrator may administer unified personal health premium accounts
3.5separately or in conjunction with other employee benefit services, including services
3.6that facilitate and coordinate tax-preferred payments for health care and coverage under
3.7Internal Revenue Code, sections 105, 106, and 125.
3.8(f) An administrator shall create and maintain records of receipts, payments, and
3.9other transactions, sufficient to enable the individual to benefit from tax advantages
3.10available to the individual under Internal Revenue Code, sections 105, 106, 125, and other
3.11relevant sections, and under Minnesota income tax law, for health insurance paid by or on
3.12behalf of the individual. The administrator shall identify and notify the account holder and
3.13contributors of any applicable tax subsidies and tax credits for which the account holder or
3.14contributor qualifies in connection with the account or items paid for through the account.
3.15The records and procedures must be capable of segregating funds to maintain restrictions
3.16on the funds received from contributors.
3.17(g) Individual insurance market products paid for through the account under this
3.18section are not an employer-sponsored plan subject to state or federal group insurance
3.19market requirements.
3.20 Subd. 2. Trust account requirements. (a) Contributions to an individual's account
3.21may be made by the individual, the individual's employer or former employer, the
3.22individual's family members or dependents, charitable organizations, or any other source.
3.23(b) Tax-preferred contributions under Internal Revenue Code, sections 105 and 106,
3.24must be maintained in a separate account.
3.25(c) A trust created and trustees appointed under this act shall:
3.26(1) have the powers granted under, and shall comply with, the provisions of chapter
3.27501B that are relevant to a trust created for purposes of this act;
3.28(2) allow for financial contributions from multiple sources;
3.29(3) make funds available for the payment of premiums on any type of health
3.30insurance included in section 62V.01, subdivision 4, from any insurance company, subject
3.31to any restriction under paragraph (b);
3.32(4) permit the administrator to draw funds from the account for the payment or
3.33reimbursement of health insurance premiums under a written agreement with the owner
3.34of the account;
3.35(5) segregate funds to maintain restrictions on the funds received from contributors;
3.36and
4.1(6) guarantee that funds contributed by an employer will remain available to the
4.2account holder after the account holder's term of employment with the employer ends.
4.3 Sec. 4. REPEALER.
4.4Minnesota Statutes 2010, section 62L.12, subdivisions 3 and 4, are repealed.
4.5 Sec. 5. EFFECTIVE DATE.
4.6This act is effective the day following final enactment."
4.7Delete the title and insert:
4.9relating to insurance; permitting certain entities to administer unified personal
4.10health premium accounts;proposing coding for new law as Minnesota Statutes,
4.11chapter 62V; repealing Minnesota Statutes 2010, section 62L.12, subdivisions
4.123, 4."