HF 2270

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to health; authorizing a farm co-op health plan pilot project; amending
Minnesota Statutes 2006, section 62H.02.

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

Section 1.

Minnesota Statutes 2006, section 62H.02, is amended to read:

62H.02 REQUIRED PROVISIONS.

new text begin (a) new text end A joint self-insurance plan must include aggregate excess stop-loss coverage and
individual excess stop-loss coverage provided by an insurance company licensed by the
state of Minnesota.

new text begin (b) new text end Aggregate excess stop-loss coverage must include provisions to cover incurred,
unpaid claim liability in the event of plan termination. deleted text begin In addition,
deleted text end

new text begin (c) new text end The plan of self-insurance must have participating employers fund an amount at
least equal to the point at which the excess or stop-loss insurer has contracted to assume
100 percent of additional liability.

new text begin (d) new text end A joint self-insurance plan must submit its proposed excess or stop-loss insurance
contract to the commissioner of commerce at least 30 days prior to the proposed plan's
effective date and at least 30 days subsequent to any renewal date. The commissioner shall
review the contract to determine if they meet the standards established by sections 62H.01
to 62H.08 and respond within a 30-day period.

new text begin (e) new text end Any excess or stop-loss insurance plan must contain a provision that the excess
or stop-loss insurer will give the plan and the commissioner of commerce a minimum of
180 days' notice of termination or nonrenewal. If the plan fails to secure replacement
coverage within 60 days after receipt of the notice of cancellation or nonrenewal, the
commissioner shall issue an order providing for the orderly termination of the plan.

new text begin (f) new text end The commissioner may waive the requirements of this section and of any rule
relating to the requirements of this section, if the commissioner determines that a joint
self-insurance plan has established alternative arrangements that fully fund the plan's
liability or incurred but unpaid claims. The commissioner may not waive the requirement
that a joint self-insurance plan have excess stop-loss coverage.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2. new text begin AGRICULTURAL COOPERATIVE HEALTH PLAN FOR FARMERS.
new text end

new text begin Subdivision 1. new text end

new text begin Pilot project requirements. new text end

new text begin The commissioner of commerce shall
authorize a joint self-insurance pilot project administered by a trust sponsored by one
or more agricultural cooperatives organized under Minnesota Statutes, chapter 308A,
or under a federal charter for the purpose of offering health coverage to members of
the cooperatives and their families, provided the project satisfies the requirements of
Minnesota Statutes, chapter 62H, except as follows:
new text end

new text begin (1) Minnesota Statutes, section 62H.02, subdivision 1, paragraph (b), does not apply;
new text end

new text begin (2) the notice period required under Minnesota Statutes, section 62H.02, subdivision
1, paragraph (e), is 90 days;
new text end

new text begin (3) the commissioner shall grant necessary waivers and approve an alternative
arrangement that fully funds the plan's liability or incurred but unpaid claims under
Minnesota Statutes, section 62H.02, subdivision 1, paragraph (f), unless the commissioner
provides evidence demonstrating that the insolvency protection proposed is substantially
less than that typically provided by self-insured group plans of a similar size in Minnesota;
new text end

new text begin (4) notwithstanding Minnesota Statutes, section 62H.04, paragraph (a), the joint
self-insurance plan shall be considered a large group and not subject to the small group
insurance requirements in Minnesota Statutes, chapter 62L, even if some employer
groups enrolled in the plan would be defined as small employers, except that the joint
self-insurance plan may elect to treat the sale of a health plan to or for an employer that
has only one eligible employee who has not waived coverage as the sale of an individual
health plan as allowed under Minnesota Statutes, section 62L.02, subdivision 26;
new text end

new text begin (5) Minnesota Statutes, section 297I.05, subdivision 12, paragraph (c), does not
apply; and
new text end

new text begin (6) the trust must pay the assessment for the Minnesota comprehensive health
association as provided under Minnesota Statutes, section 62E.11.
new text end

new text begin Subd. 2. new text end

new text begin Evaluation and renewal. new text end

new text begin The pilot project authorized under this section
is for a period of four years from the date of initial enrollment. The commissioner shall
grant an extension of four additional years if the trust provides evidence that it remains in
compliance with the requirements of this section and other applicable laws and rules. If the
commissioner determines that the operation of the trust has not improved access, expanded
health plan choices, or improved affordability of health coverage for farm families, or
that it has significantly damaged access, choice, or affordability for other consumers not
enrolled in the trust, the commissioner shall provide at least 180 days' advance written
notice to the trust and to the chairs of the senate and house finance and policy committees
with jurisdiction over health and insurance matters of the commissioner's intention not to
renew the pilot project at the expiration of a four-year period.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end