HF 4035

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

A bill for an act
relating to commerce; reforming no-fault auto insurance; prohibiting an injured
person from collecting noneconomic damages in certain circumstances;
modifying arbitration procedures; prohibiting balance billing by health care
providers; clarifying civil liability with respect to recovery of medical and health
care expenses; amending Minnesota Statutes 2006, sections 65B.44, subdivision
2; 65B.51, subdivisions 1, 3; 65B.525, subdivision 1; 65B.54, by adding a
subdivision; 604.01, by adding a subdivision; 604.02, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2006, section 65B.44, subdivision 2, is amended to read:

Subd. 2.

Medical expense benefits.

(a) Medical expense benefits shall reimburse
all reasonable expenses for necessary:

(1) medical, surgical, x-ray, optical, dental, chiropractic, and rehabilitative services,
including prosthetic devices;

(2) prescription drugs;

(3) ambulance and all other transportation expenses incurred in traveling to receive
other covered medical expense benefits;

(4) sign interpreting and language translation services, other than such services
provided by a family member of the patient, related to the receipt of medical, surgical,
x-ray, optical, dental, chiropractic, hospital, extended care, nursing, and rehabilitative
services; and

(5) hospital, extended care, and nursing services.

(b) Hospital room and board benefits may be limited, except for intensive care
facilities, to the regular daily semiprivate room rates customarily charged by the institution
in which the recipient of benefits is confined.

(c) Such benefits shall also include necessary remedial treatment and services
recognized and permitted under the laws of this state for an injured person who relies
upon spiritual means through prayer alone for healing in accordance with that person's
religious beliefs.

(d) Medical expense loss includes medical expenses accrued prior to the death of a
person notwithstanding the fact that benefits are paid or payable to the decedent's survivors.

(e) Medical expense benefits for rehabilitative services shall be subject to the
provisions of section 65B.45.

new text begin (f) In addition to any other limitation under law, medical expense benefits are
limited to the amount actually paid or actually incurred by or on behalf of the claimant,
whichever amount is lower.
new text end

Sec. 2.

Minnesota Statutes 2006, section 65B.51, subdivision 1, is amended to read:

Subdivision 1.

Deduction of basic economic loss benefits.

With respect to a
cause of action in negligence accruing as a result of injury arising out of the operation,
ownership, maintenance or use of a motor vehicle with respect to which security has
been provided as required by sections 65B.41 to 65B.71, the court shall deduct from any
recovery the value of basic or optional economic loss benefits new text begin actually new text end paid deleted text begin or deleted text end new text begin , actually new text end
payable, or which would be new text begin actually new text end payable but for any applicable deductible. In any
case where the claimant is found to be at fault under section 604.01, the deduction for
basic economic loss benefits must be made before the claimant's damages are reduced
under section 604.01, subdivision 1.

Sec. 3.

Minnesota Statutes 2006, section 65B.51, subdivision 3, is amended to read:

Subd. 3.

Limitation of damages for noneconomic detriment.

In an action
described in subdivision 1, no person shall recover damages for noneconomic detriment
unless:

(a) The sum of the following exceeds $4,000:

(1) reasonable medical expense benefits new text begin actually new text end paid, new text begin actually new text end payable new text begin , new text end or new text begin actually
new text end payable but for any applicable deductible, plus

(2) the value of free medical or surgical care or ordinary and necessary nursing
services performed by a relative of the injured person or a member of the injured person's
household, plus

(3) the amount by which the value of reimbursable medical services or products
exceeds the amount of benefit paid, payable, or payable but for an applicable deductible
for those services or products if the injured person was charged less than the average
reasonable amount charged in this state for similar services or products, minus

(4) the amount of medical expense benefits new text begin actually new text end paid, new text begin actually new text end payable, or
new text begin actually new text end payable but for an applicable deductible for diagnostic X-rays and for a procedure
or treatment for rehabilitation and not for remedial purposes or a course of rehabilitative
occupational training; or

(b) the injury results in:

(1) permanent disfigurement;

(2) permanent injury;

(3) death; or

(4) disability for 60 days or more.

(c) For the purposes of clause (a) evidence of the reasonable value of medical
services and products shall be admissible in any action brought in this state.

For the purposes of this subdivision disability means the inability to engage in
substantially all of the injured person's usual and customary daily activities.

new text begin (d) Except as provided in paragraph (f), in any action to recover damages arising out
of the operation or use of a motor vehicle, a person shall not recover noneconomic losses
to compensate for pain, suffering, inconvenience, physical impairment, disfigurement, and
other nonpecuniary damages if any of the following applies:
new text end

new text begin (1) the injured person was at the time of the accident operating the vehicle in
violation of sections 169A.20 to 169A.27 and was convicted of that offense;
new text end

new text begin (2) the injured person was the owner of a vehicle involved in the accident and the
vehicle was not insured as required by the financial responsibility laws of this state; or
new text end

new text begin (3) the injured person was the operator of a vehicle involved in the accident and
the operator cannot establish their financial responsibility as required by the financial
responsibility laws of this state.
new text end

new text begin (e) Except as provided in paragraph (f), an insurer shall not be liable, directly or
indirectly, under a policy of liability or uninsured motorist insurance to indemnify for
noneconomic losses of a person injured as described in paragraph (d).
new text end

new text begin (f) In the event a person described in paragraph (d), clause (2), was injured by
a motorist who at the time of the accident was operating their vehicle in violation of
sections 169A.20 to 169A.27 and was convicted of that offense, the injured person shall
not be barred from recovering noneconomic losses to compensate for pain, suffering,
inconvenience, physical impairment, disfigurement, and other nonpecuniary damages.
new text end

Sec. 4.

Minnesota Statutes 2006, section 65B.525, subdivision 1, is amended to read:

Subdivision 1.

Mandatory submission to binding arbitration new text begin of nonconsolidated
claims new text end .

Except as otherwise provided in section 72A.327, the Supreme Court and the
several courts of general trial jurisdiction of this state shall by rules of court or other
constitutionally allowable device, provide for the mandatory submission to binding
arbitration of all cases at issue where new text begin claims have not been consolidated and new text end the claim at
the commencement of arbitration is in an amount of $10,000 or less against any insured's
reparation obligor for no-fault benefits or comprehensive or collision damage coverage. new text begin
Consolidated claims shall not be submitted to binding arbitration unless all parties or their
counsel have signed a written agreement referring the case to binding arbitration. new text end

Sec. 5.

Minnesota Statutes 2006, section 65B.54, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Balance billing by health care providers prohibited. new text end

new text begin (a) This subdivision
applies to charges for medical expense benefits as defined in section 65B.44, subdivision
2, to the extent that a reparation obligor has rejected them under subdivision 5 on the basis
that the health care was not medically necessary or on the basis that the charges exceed the
usual and customary rate.
new text end

new text begin (b) If a reparation obligor rejects, in whole or in part, a claim for health care
provided to the claimant by a health care provider, for reasons specified in paragraph (a),
the claimant is not obligated to pay the health care provider for the rejected charges.
new text end

new text begin (c) The health care provider shall not bill the claimant for those charges or otherwise
attempt to collect them from the claimant after they have been rejected by the insurer.
new text end

new text begin (d) A health care provider whose charges are rejected, in whole or in part, under this
section by a reparation obligor, is the party at interest and has standing to commence and
pursue a claim for payment as a claimant against the reparation obligor in an arbitration
proceeding under section 65B.525. In such a proceeding, the insured may be required
to attend the arbitration proceeding by either the reparation obligor or the health care
provider, subject to the conditions provided in section 65B.56, subdivision 2.
new text end

new text begin (e) A health care provider shall not require an insured to waive any provision of this
section, and any such attempted waiver is void and unenforceable.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2009, and applies to
medical expense benefits provided on or after that date.
new text end

Sec. 6.

Minnesota Statutes 2006, section 604.01, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Limitation. new text end

new text begin In addition to any other limitation under law, recovery of
medical or health care expenses is limited to the amount actually paid or actually incurred
by or on behalf of the claimant, whichever amount is lower.
new text end

Sec. 7.

Minnesota Statutes 2006, section 604.02, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Limitation. new text end

new text begin In addition to any other limitation under law, recovery of
medical or health care expenses is limited to the amount actually paid or actually incurred
by or on behalf of the claimant, whichever amount is lower.
new text end