SF 2867

as introduced - 90th Legislature (2017 - 2018) Posted on 03/09/2018 09:29am

A bill for an act
relating to health; requiring review of transfers of assets by health maintenance
organizations and nonprofit health service plan corporations; requiring transfer
penalties to be assessed in certain circumstances; proposing coding for new law
in Minnesota Statutes, chapter 62Q.

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

Section 1.

new text begin [62Q.111] COMMISSIONER REVIEW OF SUBSTANTIAL TRANSFERS
OF ASSETS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this section.
new text end

new text begin (b) "Commissioner" means the commissioner of health for health maintenance
organizations and the commissioner of commerce for nonprofit health service plan
corporations.
new text end

new text begin (c) "Health maintenance organization" means an entity governed by chapter 62D.
new text end

new text begin (d) "Minnesota premium security plan" means the plan established under sections 62E.21
to 62E.25.
new text end

new text begin (e) "Nonprofit health service plan corporation" means an entity governed by chapter
62C.
new text end

new text begin (f) "Public health care programs" means the medical assistance program, the
MinnesotaCare program, and the state employee group insurance program.
new text end

new text begin (g) "Related organization" has the meaning given in section 317A.011, subdivision 18.
new text end

new text begin (h) "Substantial transfer of assets" means a transfer of assets in an amount that is equal
to or greater than the lesser of:
new text end

new text begin (1) $.......; or
new text end

new text begin (2) ....... percent of the health maintenance organization's or nonprofit health service
plan corporation's total assets for the preceding calendar year as reported to the commissioner.
new text end

new text begin Subd. 2. new text end

new text begin Annual report. new text end

new text begin (a) By April 1 of each year, a health maintenance organization
or nonprofit health service plan corporation must file a report with the commissioner and
the attorney general regarding all transfers of assets made in the preceding calendar year,
including any transfer to a related organization. A health maintenance organization or
nonprofit health service plan corporation is not required to report the following transactions
under this subdivision:
new text end

new text begin (1) payment for health care goods or services delivered to enrollees;
new text end

new text begin (2) payment for administrative, management, or financial services; or
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new text begin (3) the construction, lease, or purchase of equipment or facilities for the entity's business
operations or the delivery of health care goods or services to enrollees.
new text end

new text begin (b) The report must specify the amount of state funds the health maintenance organization
or nonprofit health service plan corporation received for public health care programs and
the Minnesota premium security plan in the five calendar years preceding the report. The
report must also include the following information for each transfer:
new text end

new text begin (1) the value of the assets transferred;
new text end

new text begin (2) the recipient of the assets;
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new text begin (3) whether the assets, following the transfer, were devoted to providing comprehensive
health care to Minnesota residents; and
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new text begin (4) any other information required by the commissioner or attorney general.
new text end

new text begin Subd. 3. new text end

new text begin Review; determinations; transfer penalty. new text end

new text begin (a) The commissioner shall review
the reports submitted according to subdivision 2 and shall conduct an analysis according to
paragraphs (b) to (e).
new text end

new text begin (b) The commissioner shall determine whether a health maintenance organization or
nonprofit health service plan corporation received more than a total of $....... in state funds
for public health care programs and the Minnesota premium security plan in the preceding
five calendar years.
new text end

new text begin (c) For each health maintenance organization or nonprofit health service plan corporation
identified in paragraph (b), the commissioner shall determine the number of asset transfers
made by that entity to a foreign or domestic corporation for a purpose other than the provision
of comprehensive health care to Minnesota residents.
new text end

new text begin (d) For each health maintenance organization or nonprofit health service plan corporation
identified in paragraph (b), the commissioner shall sum the value of the assets transferred
in asset transfers identified in paragraph (c).
new text end

new text begin (e) For each health maintenance organization or nonprofit health service plan corporation
identified in paragraph (b), if the amount determined under paragraph (d) constitutes a
substantial transfer of assets, the commissioner shall assess against the health maintenance
organization or nonprofit health service plan corporation a transfer penalty of three percent
of the amount determined under paragraph (d).
new text end

new text begin (f) All transfer penalties assessed under this subdivision shall be deposited in the health
care access fund established under section 16A.724.
new text end

new text begin Subd. 4. new text end

new text begin Review of commissioner's action. new text end

new text begin A health maintenance organization or
nonprofit health service plan corporation may contest a determination or penalty assessment
made by the commissioner under this section using the contested case procedures in chapter
14.
new text end

new text begin Subd. 5. new text end

new text begin Attorney general. new text end

new text begin The attorney general may review the reports submitted
according to subdivision 2 and act under any authority granted in section 8.31 or chapter
317A or 501B.
new text end