HF 152

as introduced - 90th Legislature (2017 - 2018) Posted on 01/13/2017 10:10am

A bill for an act
relating to health; providing a premium subsidy for eligible individuals for calendar
year 2017; appropriating money.

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

Section 1. new text begin PREMIUM SUBSIDY.
new text end

new text begin The commissioner of management and budget shall establish and administer a premium
subsidy for eligible individuals to help to pay for health insurance premiums.
new text end

Sec. 2. new text begin DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For purposes of this act, the terms in this section have the meanings
given.
new text end

new text begin Subd. 2. new text end

new text begin Eligible individual. new text end

new text begin "Eligible individual" means a Minnesota resident who is
not receiving a premium tax credit under Code of Federal Regulations and is not receiving
public program coverage under Minnesota Statutes, section 256B.055 or 256L.04.
new text end

new text begin Subd. 3. new text end

new text begin Gross premium. new text end

new text begin "Gross premium" means the amount billed for a health plan
purchased by an eligible individual prior to receiving a state premium subsidy, as defined
in subdivision 5, in a calendar year.
new text end

new text begin Subd. 4. new text end

new text begin Net premium. new text end

new text begin "Net premium" means the gross premium less the subsidy
defined in subdivision 5.
new text end

new text begin Subd. 5. new text end

new text begin Premium subsidy. new text end

new text begin "Premium subsidy":
new text end

new text begin (1) is a payment made on behalf of eligible individuals under this state program, for the
promotion of general welfare, and is not compensation for any services;
new text end

new text begin (2) is equal to 25 percent of the monthly gross premium otherwise paid by or on behalf
of the eligible individual that covers the eligible individual and eligible individual's spouse
and dependents; and
new text end

new text begin (3) is excluded from any calculation used to determine eligibility for any Department
of Human Services program.
new text end

new text begin Subd. 6. new text end

new text begin Health carrier. new text end

new text begin "Health carrier" has the meaning given in Minnesota Statutes,
section 62A.011, subdivision 2.
new text end

new text begin Subd. 7. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of management and
budget.
new text end

new text begin Subd. 8. new text end

new text begin Individual market. new text end

new text begin "Individual market" means the market for health insurance
coverage offered to individuals other than in connection with a group health plan as defined
in Minnesota Statutes, section 62A.011, subdivision 5.
new text end

Sec. 3. new text begin PAYMENT TO HEALTH CARRIERS ON BEHALF OF ELIGIBLE
INDIVIDUALS.
new text end

new text begin Payments to health carriers are based on the premium subsidy available to eligible
individuals in the individual market, regardless of the cost of coverage purchased. Health
carriers seeking reimbursement from the state must submit an invoice and supporting
information to the commissioner in a form prescribed by the commissioner in order to be
eligible for payment. Payments are made on behalf of eligible individuals effectuating
coverage for calendar year 2017 and for the months in that year that the net premium amount
has been received by the health carriers for that individual. Total state payments to health
carriers are to be made within the scope of the available appropriation in section 4.
new text end

Sec. 4. new text begin AUDIT.
new text end

new text begin The Department of Commerce shall conduct audits of the health carriers' supporting
data, as prescribed by the commissioner, to determine whether payments align with criteria
established in sections 2 and 3. The Department of Human Services shall provide data as
necessary to the Department of Commerce to complete the audit. All data collected for that
purpose will be held as confidential and nonpublic. The commissioner shall withhold or
charge back payments to the health carriers to the extent they do not align with the criteria
established in sections 2 and 3, as determined by the Department of Commerce.
new text end

Sec. 5. new text begin GROSS PREMIUM EXEMPTIONS.
new text end

new text begin The gross premium is not exempt under Minnesota Statutes, section 297I.15 or 62V.05,
subdivision 2.
new text end

Sec. 6. new text begin APPROPRIATIONS.
new text end

new text begin (a) $311,645,000 in fiscal year 2017 is appropriated to Minnesota Management and
Budget from the health care access fund for purposes of making payments defined in section
3. The commissioner shall prorate payments to the health carriers if necessary so as not to
exceed the appropriation available. The appropriation is onetime and is available through
June 30, 2018.
new text end

new text begin (b) $300,000 in fiscal year 2017 is appropriated from the health care access fund to the
Department of Commerce for purposes of section 4 and to facilitate payments to health
carriers. The appropriation is available until expended.
new text end

Sec. 7. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 6 are effective the day following final enactment.
new text end