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HF 3811

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

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to insurance; specifying maximum financial reserves for nonprofit health
plan companies; creating the Minnesota health fund; appropriating money;
proposing coding for new law in Minnesota Statutes, chapters 16A; 60A.

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

Section 1.

new text begin [16A.74] MINNESOTA HEALTH FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Creation of fund. new text end

new text begin A Minnesota health fund is created in the state
treasury. The fund is a direct appropriated special revenue fund. The commissioner shall
deposit to the credit of the fund money made available to the fund. Notwithstanding
section 11A.20, after June 30, 1997, all investment income and all investment losses
attributable to the investment of the Minnesota health fund not currently needed shall
be credited to the Minnesota health fund.
new text end

new text begin Subd. 2. new text end

new text begin Purpose of fund. new text end

new text begin The purpose of the Minnesota health fund is to provide
health care services that are not delivered nor in any way related to nonprofit health
services corporations and health maintenance organizations. Notwithstanding any law to
the contrary, funds shall be distributed from the Minnesota health fund as follows:
new text end

new text begin (a) Beginning January 1, 2010, funds in the Minnesota health fund are dedicated to
the commissioner of health for purposes of grants to community health boards to convene,
coordinate, and lead locally developed programs targeted at achieving measurable health
improvement goals. Funding to each community health board shall be distributed based
on a per capita formula, with a base allocation of $50,000 to each community health board
that receives funding. By January 15, 2012, the commissioner of health shall recommend
whether additional funding should be distributed to community health boards based on
health disparities demonstrated in the population served and shall recommend an ongoing
funding source for this purpose.
new text end

new text begin (b) Beginning January 1, 2012, and thereafter, funds in the Minnesota health fund
at the beginning of each calendar year shall be distributed as community reinvestment
in Minnesota health care programs, which may include provider rate enhancements or
increased benefits.
new text end

new text begin Subd. 3. new text end

new text begin Prohibition on nonhealth care transfers from fund. new text end

new text begin Notwithstanding
any law to the contrary, money in the Minnesota health fund shall be appropriated only for
purposes that are consistent with subdivision 2.
new text end

Sec. 2.

new text begin [60A.7671] LIMIT ON RESERVES OF CERTAIN HEALTH INSURERS.
new text end

new text begin (a) Notwithstanding any other law to the contrary, a nonprofit health services
corporation operating under chapter 62C and a health maintenance organization operating
under chapter 62D must not have reserves that exceed the product of its authorized control
level risk-based capital and 5.0 and administrative expenses in connection therewith,
during the most current calendar year. The amounts shall be determined from a financial
statement and certified audit filed annually and subject to verification of an examination
by the commissioner.
new text end

new text begin (b) For purposes of this section, "reserves" includes claims reserves, premium
reserves, and contact reserves as described in sections 60A.762 to 60A.766.
new text end

new text begin (c) If reserves exceeded the maximum required under this section by more than
$10,000 at any time during the previous calendar year, an entity regulated under this
chapter shall transfer all reserves in excess of the maximum to the Minnesota health fund
on January 2 of each calendar year pursuant to section 16A.74.
new text end

new text begin (d) Nothing in this section changes the requirements of county-based purchasing
for purposes of section 256B.692.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2009.
new text end

Sec. 3. new text begin APPROPRIATION.
new text end

new text begin (a) $....... is appropriated from the Minnesota health fund in fiscal year 2010 for the
University of Minnesota to investigate and report on the costs and savings to the state's
overall health care system of a single payer health plan in Minnesota.
new text end

new text begin (b) $....... is appropriated from the Minnesota health fund in fiscal year 2010
for administrative expenses incurred by the commissioners of health and commerce
in providing the University of Minnesota with any proprietary or otherwise protected
information on health insurance financing that is deemed necessary by the university for
the completion of its study of a single payer health plan in Minnesota.
new text end

new text begin (c) $....... is appropriated from the Minnesota health fund in fiscal year 2010 for a
five-year pilot program expansion of county-based purchasing in the counties of Big Stone,
Douglas, Grant, McLeod, Meeker, Pipestone, Pope, Renville, Stevens, and Traverse,
which conforms to the specific description of the program submitted to the commissioner
of health pursuant to Laws 2007, chapter 147, article 15, section 18, subdivision 2.
new text end