SF 1707

as introduced - 89th Legislature (2015 - 2016) Posted on 03/27/2015 09:22am

A bill for an act
relating to insurance; establishing a state reinsurance program for the individual
and small group markets; requiring an assessment; establishing a health
reinsurance account; appropriating money; proposing coding for new law in
Minnesota Statutes, chapter 62A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [62A.67] STATE REINSURANCE PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner shall establish a state reinsurance
program for the individual and small group markets that is a continuation of the federal
reinsurance program implemented under section 1341 of the Affordable Care Act (Public
Laws 111-148 and 111-152). The state reinsurance program must be implemented
beginning January 1, 2016. In designing the state reinsurance program, the commissioner,
to the extent feasible, shall incorporate the operating procedures, criteria, and timelines of
the federal reinsurance program.
new text end

new text begin Subd. 2. new text end

new text begin Assessment and payment parameters for the 2016 benefit year. new text end

new text begin For the
benefit year beginning January 1, 2016, the commissioner shall assess all health carriers
an annual uniform reinsurance contribution rate of $....... per enrollee. This assessment
is in addition to the assessment required under section 1341 of the Affordable Care Act.
The assessment must be used to modify the payment parameters of the federal reinsurance
program for the 2016 benefit year, so that for reinsurance coverage in Minnesota:
new text end

new text begin (1) the attachment point is set at $70,000;
new text end

new text begin (2) the reinsurance cap is set at $250,000; and
new text end

new text begin (3) the coinsurance rate is set at 50 percent.
new text end

new text begin Subd. 3. new text end

new text begin Assessment and payment parameters for the 2017 benefit year. new text end

new text begin For
the benefit year beginning January 1, 2017, the commissioner shall assess all health plan
companies an annual uniform reinsurance contribution rate of $....... per enrollee. The
assessment must be used to fund the state reinsurance program for the 2017 benefit year,
so that for reinsurance coverage in Minnesota:
new text end

new text begin (1) the attachment point is $70,000;
new text end

new text begin (2) the reinsurance cap is $250,000; and
new text end

new text begin (3) the coinsurance rate is 50 percent.
new text end

new text begin Subd. 4. new text end

new text begin Future benefit years. new text end

new text begin The commissioner shall set the annual uniform
reinsurance contribution rate and the payment parameters for each benefit year. The
commissioner shall notify health plan companies and interested parties of the annual
uniform reinsurance contribution rate and payment parameters that apply to a new benefit
year by September 1 of the previous benefit year.
new text end

new text begin Subd. 5. new text end

new text begin Health reinsurance account. new text end

new text begin All annual uniform reassessment
contributions must be deposited into a health reinsurance account within the state general
fund. Money in the account is appropriated to the commissioner to fund the state
reinsurance program under this section.
new text end

new text begin Subd. 6. new text end

new text begin Supplemental assessment. new text end

new text begin The commissioner shall annually determine
the health reinsurance account balance at the end of each benefit year by February 1 of
the following benefit year. The commissioner shall address any shortfall in funding for a
benefit year by requiring health carriers to pay a supplemental per enrollee assessment
during the next benefit year that is separate from, and in addition to, the uniform
reinsurance contribution rate set for the next benefit year.
new text end