HF 2167

as introduced - 91st Legislature (2019 - 2020) Posted on 03/07/2019 02:47pm

A bill for an act
relating to health insurance; establishing a premium subsidy program administered
by MNsure; providing a sunset for the Minnesota premium security plan; modifying
calculation of loss ratios to reflect reinsurance payments; appropriating money;
amending Minnesota Statutes 2018, sections 62A.021, by adding a subdivision;
62E.23, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter
62V; repealing Laws 2017, chapter 13, article 1, sections 1; 2; 3; 4; 5; 6.

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

Section 1.

Minnesota Statutes 2018, section 62A.021, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Minnesota premium security plan and loss ratio calculations. new text end

new text begin (a) When
demonstrating compliance with this section in its rate filing, a health carrier must subtract
from incurred claims or incurred health expenses all reinsurance payments applied for or
received under section 63E.23 for benefit years 2018 and 2019.
new text end

new text begin (b) When reviewing a health carrier rate filing, the commissioner must verify the health
carrier complies with this subdivision.
new text end

Sec. 2.

Minnesota Statutes 2018, section 62E.23, subdivision 1, is amended to read:

Subdivision 1.

Administration of plan.

(a) The association is Minnesota's reinsurance
entity to administer the state-based reinsurance program referred to as the Minnesota premium
security plan.

(b) The association may apply for any available federal funding for the plan. All funds
received by or appropriated to the association shall be deposited in the premium security
plan account in section 62E.25, subdivision 1. The association shall notify the chairs and
ranking minority members of the legislative committees with jurisdiction over health and
human services and insurance within ten days of receiving any federal funds.

(c) The association must collect or access data from an eligible health carrier that are
necessary to determine reinsurance payments, according to the data requirements under
subdivision 5, paragraph (c).

(d) The board must not use any funds allocated to the plan for staff retreats, promotional
giveaways, excessive executive compensation, or promotion of federal or state legislative
or regulatory changes.

(e) For each applicable benefit year, the association must notify eligible health carriers
of reinsurance payments to be made for the applicable benefit year no later than June 30 of
the year following the applicable benefit year.

(f) On a quarterly basis during the applicable benefit year, the association must provide
each eligible health carrier with the calculation of total reinsurance payment requests.

(g) By August 15 of the year following the applicable benefit year, new text begin through August 15,
2020, new text end the association must disburse all applicable reinsurance payments to an eligible health
carrier.

new text begin (h) The association must disburse applicable reinsurance payments for claims costs
incurred by eligible health carriers through December 31, 2019. Reinsurance payments are
not available to eligible health carriers for claims costs incurred after December 31, 2019.
new text end

Sec. 3.

new text begin [62V.12] 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 sections 62V.12 to 62V.15, the following terms
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 (a) "Eligible individual" means a Minnesota resident who:
new text end

new text begin (1) is not receiving an advance premium tax credit under Code of Federal Regulations,
title 26, section 1.36B-2, in a month in which the eligible individual's coverage is effective;
new text end

new text begin (2) is not enrolled in public program coverage under section 256B.055 or 256L.04;
new text end

new text begin (3) purchased a qualified health plan through MNsure; and
new text end

new text begin (4) has a household income that does not exceed 800 percent of the federal poverty
guidelines, calculated using a modified adjusted gross income methodology.
new text end

new text begin (b) "Eligible individual" includes a person required to repay an advanced premium tax
credit because the person's income was subsequently determined to exceed 400 percent of
the federal poverty guidelines, provided the person would have met the income limit in
paragraph (a), clause (4), during the time period when the advanced premium tax credit
must be repaid.
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 a premium subsidy 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 premium
subsidy.
new text end

new text begin Subd. 5. new text end

new text begin Premium subsidy. new text end

new text begin "Premium subsidy" means a payment:
new text end

new text begin (1) made on behalf of eligible individuals to promote general welfare and not as
compensation for any services; and
new text end

new text begin (2) equal to (i) 25 percent of the monthly gross premium otherwise paid by or on behalf
of the eligible individual for coverage purchased through MNsure, that covers the eligible
individual and the eligible individual's spouse and dependents, or (ii) the percentage
established by the commissioner under section 62V.13, subdivision 3, paragraph (c).
new text end

Sec. 4.

new text begin [62V.13] PAYMENT TO HEALTH CARRIERS ON BEHALF OF ELIGIBLE
INDIVIDUALS.
new text end

new text begin Subdivision 1. new text end

new text begin Program established. new text end

new text begin The board of directors of MNsure, in consultation
with the commissioners of commerce and human services, must establish and administer
the premium subsidy program authorized by this section to help eligible individuals pay for
coverage through MNsure, beginning January 1, 2020.
new text end

new text begin Subd. 2. new text end

new text begin Premium subsidy provided. new text end

new text begin (a) Health carriers must provide a premium
subsidy to each eligible individual who purchases a qualified health plan through MNsure
for each month the net premium is paid. An eligible individual must pay the net premium
amount to the health carrier.
new text end

new text begin (b) The premium subsidy must be excluded from any calculation used to determine
eligibility within any Department of Human Services programs.
new text end

new text begin Subd. 3. new text end

new text begin Payments to health carriers. new text end

new text begin (a) The board must make payments to health
carriers on behalf of eligible individuals effectuating coverage for a calendar year, for the
months in that year for which the individual has paid the net premium amount to the health
carrier. Payments to health carriers must be based on the premium subsidy available to
eligible individuals in the individual market, regardless of the cost of the coverage purchased.
The board must not withhold payments because a health carrier cannot prove an enrollee
is an eligible individual.
new text end

new text begin (b) In order to be eligible for payment, health carriers seeking reimbursement from the
board must submit an invoice and supporting information to the board, using a form
developed by the board. The board must finalize the form by November 1, 2019.
new text end

new text begin (c) Total state payments to health carriers must be made within the limits of the available
appropriation. The board must reimburse health carriers at the full requested amount up to
the level of the appropriation. The board, by July 15 of each calendar year, must determine
whether the available appropriation is sufficient to provide premium subsidies equal to 25
percent of the gross premium for the period September 1 through December 31 of the
calendar year. If the board determines the available appropriation is not sufficient, the board
must reduce the premium subsidy percentage, beginning September 1 and through the
remainder of the calendar year, by an amount sufficient to ensure that the total amount of
premium subsidies provided for the calendar year does not exceed the available appropriation.
The board must notify health carriers of any reduced premium subsidy percentage within
five days of making a determination. Health carriers must provide enrollees with at least
30 days' notice of any reduction in the premium subsidy percentage.
new text end

new text begin (d) The board must consider health carriers as vendors under section 16A.124, subdivision
3, and each monthly invoice must represent the completed delivery of the service.
new text end

new text begin (e) With each November forecast, the board must certify the extent to which
appropriations exceed forecast obligations under this subdivision.
new text end

new text begin Subd. 4. new text end

new text begin Retroactive payments to individuals. new text end

new text begin (a) The board must make retroactive
subsidy payments directly to individuals for any month the individual is required to repay
an advanced premium tax credit because the individual's income exceeded 400 percent of
the federal poverty guidelines. In order to qualify for retroactive subsidy payments for the
month, the individual must have met the income limit in section 62V.12, subdivision 2,
clause (4), for that month.
new text end

new text begin (b) Retroactive subsidy payments to individuals must be adjusted by the board to the
same extent that payments to health carriers are adjusted under subdivision 3.
new text end

new text begin Subd. 5. new text end

new text begin Data practices. new text end

new text begin (a) The definitions in section 13.02 apply to this subdivision.
new text end

new text begin (b) Government data on an enrollee or health carrier under this section are private data
on individuals or nonpublic data, except that the total reimbursement requested by a health
carrier and the total state payment to the health carrier are public data.
new text end

new text begin Subd. 6. new text end

new text begin Data sharing. new text end

new text begin (a) Notwithstanding any law to the contrary, government entities
are permitted to share or disseminate data as follows:
new text end

new text begin (1) the commissioner of human services must share data on public program enrollment
under sections 256B.055 and 256L.04 with the board; and
new text end

new text begin (2) the board must disseminate data on an enrollee's public program coverage enrollment
under sections 256B.055 and 256L.04 to health carriers to the extent the board determines
is necessary to determine the enrollee's eligibility for the premium subsidy program
authorized by this section.
new text end

new text begin (b) Data shared under this subdivision may be collected, stored, or used only to administer
the premium subsidy program authorized by this section, and must not be further shared or
disseminated except as otherwise provided by law.
new text end

new text begin Subd. 7. new text end

new text begin Intent. new text end

new text begin The legislature intends to repeal sections 62V.12 to 62V.15 upon the
enactment of future legislation to stabilize the individual insurance market and ensure
premium affordability in that market. Repeal of these sections is effective only if the sections
are repealed through the enactment of future legislation.
new text end

Sec. 5.

new text begin [62V.14] AUDITS.
new text end

new text begin (a) The legislative auditor must annually audit the health carriers' supporting data, as
prescribed by the board, to determine whether payments align with criteria established in
sections 62V.12 and 62V.13. The commissioner of human services must provide data as
necessary to the legislative auditor to complete the audit. The board must withhold or charge
back payments to the health carriers to the extent they do not align with the criteria
established in sections 62V.12 and 62V.13, as determined by the audit.
new text end

new text begin (b) The legislative auditor must annually audit the extent to which health carriers provided
premium subsidies to persons meeting the residency and other eligibility requirements
specified in section 62V.12, subdivision 2. The legislative auditor must report to the board
the amount of premium subsidies provided by each health carrier to persons not eligible for
a premium subsidy. The board, in consultation with the commissioners of commerce and
human services, must develop and implement a process to recover from health carriers the
premium subsidies received for enrollees the legislative auditor determines are ineligible
for premium subsidies.
new text end

new text begin (c) The legislative auditor must annually audit the extent to which the board provided
retroactive subsidy payments to individuals meeting the eligibility requirements specified
in section 62V.12, subdivision 2, and 62V.13, subdivision 3. The legislative auditor must
report to the board the amount of retroactive subsidy payments provided by the board to
persons that are not eligible for retroactive subsidy payments. The board, in consultation
with the commissioners of commerce and human services, must develop and implement a
process to recover from individuals the amount of retroactive subsidy payments that were
incorrectly provided.
new text end

Sec. 6.

new text begin [62V.15] APPLICABILITY OF GROSS PREMIUM.
new text end

new text begin Notwithstanding premium subsidies provided under section 62V.13, subdivision 2, the
premium base to calculate any applicable premium taxes under chapter 297I is the gross
premium for health plans purchased by eligible individuals in the individual market.
new text end

Sec. 7. new text begin TRANSFER.
new text end

new text begin Effective August 16, 2020, any remaining balance in the premium security plan account
established under Minnesota Statutes, section 62E.25, is transferred to the general fund.
new text end

Sec. 8. new text begin APPROPRIATIONS.
new text end

new text begin (a) $....... is appropriated from the general fund to the board for the biennium beginning
July 1, 2019, for premium assistance under Minnesota Statutes, section 62V.13.
new text end

new text begin (b) $....... is appropriated from the general fund to the legislative auditor for the biennium
beginning July 1, 2019, for audits under Minnesota Statutes, section 62V.14.
new text end

Sec. 9. new text begin REPEALER.
new text end

new text begin Laws 2017, chapter 13, article 1, sections 1; 2; 3; 4; 5; and 6, new text end new text begin are repealed effective
August 16, 2020.
new text end

APPENDIX

Repealed Minnesota Session Laws: 19-4233

Laws 2017, chapter 13, article 1, section 1

Section 1.

Minnesota Statutes 2016, section 62E.10, subdivision 2, is amended to read:

Subd. 2.

Board of directors; organization.

The board of directors of the association shall be made up of deleted text begin eleven deleted text end new text begin 13 new text end members as follows: six directors selected by contributing members, subject to approval by the commissioner, one of which must be a health actuary; new text begin two directors selected by the commissioner of human services, one of whom must represent hospitals and one of whom must represent health care providers; new text end five public directors selected by the commissioner, at least two of whom must be deleted text begin plan enrollees, two of whom are covered under an individual plan subject to assessment under section 62E.11 or group plan offered by an employer subject to assessment under section 62E.11, deleted text end new text begin enrollees in the individual market new text end and one of whom must be a licensed insurance agent. At least two of the public directors must reside outside of the seven-county metropolitan area. In determining voting rights at members' meetings, each member shall be entitled to vote in person or proxy. deleted text begin The vote shall be a weighted vote based upon the member's cost of self-insurance, accident and health insurance premium, subscriber contract charges, health maintenance contract payment, or community integrated service network payment derived from or on behalf of Minnesota residents in the previous calendar year, as determined by the commissioner. deleted text end In approving directors of the board, the commissioner shall consider, among other things, whether all types of members are fairly represented. Directors selected by contributing members may be reimbursed from the money of the association for expenses incurred by them as directors, but shall not otherwise be compensated by the association for their services. deleted text begin The costs of conducting meetings of the association and its board of directors shall be borne by members of the association. deleted text end

Laws 2017, chapter 13, article 1, section 2

Sec. 2.

new text begin [62E.21] DEFINITIONS. new text end

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin For the purposes of sections 62E.21 to 62E.25, the terms defined in this section have the meanings given them. new text end

new text begin Subd. 2. new text end

new text begin Affordable Care Act. new text end

new text begin "Affordable Care Act" means the federal act as defined in section 62A.011, subdivision 1a. new text end

new text begin Subd. 3. new text end

new text begin Attachment point. new text end

new text begin "Attachment point" means an amount as provided in section 62E.23, subdivision 2, paragraph (b). new text end

new text begin Subd. 4. new text end

new text begin Benefit year. new text end

new text begin "Benefit year" means the calendar year for which an eligible health carrier provides coverage through an individual health plan. new text end

new text begin Subd. 5. new text end

new text begin Board. new text end

new text begin "Board" means the board of directors of the Minnesota Comprehensive Health Association created under section 62E.10. new text end

new text begin Subd. 6. new text end

new text begin Coinsurance rate. new text end

new text begin "Coinsurance rate" means the rate as provided in section 62E.23, subdivision 2, paragraph (c). 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 commerce. new text end

new text begin Subd. 8. new text end

new text begin Eligible health carrier. new text end

new text begin "Eligible health carrier" means all of the following that offer individual health plans and incur claims costs for an individual enrollee's covered benefits in the applicable benefit year: new text end

new text begin (1) an insurance company licensed under chapter 60A to offer, sell, or issue a policy of accident and sickness insurance as defined in section 62A.01; new text end

new text begin (2) a nonprofit health service plan corporation operating under chapter 62C; or new text end

new text begin (3) a health maintenance organization operating under chapter 62D. new text end

new text begin Subd. 9. new text end

new text begin Individual health plan. new text end

new text begin "Individual health plan" means a health plan as defined in section 62A.011, subdivision 4, that is not a grandfathered plan as defined in section 62A.011, subdivision 1b. new text end

new text begin Subd. 10. new text end

new text begin Individual market. new text end

new text begin "Individual market" has the meaning given in section 62A.011, subdivision 5. new text end

new text begin Subd. 11. new text end

new text begin Minnesota Comprehensive Health Association or association. new text end

new text begin "Minnesota Comprehensive Health Association" or "association" has the meaning given in section 62E.02, subdivision 14. new text end

new text begin Subd. 12. new text end

new text begin Minnesota premium security plan or plan. new text end

new text begin "Minnesota premium security plan" or "plan" means the state-based reinsurance program authorized under section 62E.23. new text end

new text begin Subd. 13. new text end

new text begin Payment parameters. new text end

new text begin "Payment parameters" means the attachment point, reinsurance cap, and coinsurance rate for the plan. new text end

new text begin Subd. 14. new text end

new text begin Reinsurance cap. new text end

new text begin "Reinsurance cap" means the threshold amount as provided in section 62E.23, subdivision 2, paragraph (d). new text end

new text begin Subd. 15. new text end

new text begin Reinsurance payments. new text end

new text begin "Reinsurance payments" means an amount paid by the association to an eligible health carrier under the plan. new text end

Laws 2017, chapter 13, article 1, section 3

Sec. 3.

new text begin [62E.22] DUTIES OF COMMISSIONER. new text end

new text begin The commissioner shall require eligible health carriers to calculate the premium amount the eligible health carrier would have charged for the benefit year if the Minnesota premium security plan had not been established. The eligible health carrier must submit this information as part of its rate filing. The commissioner must consider this information as part of the rate review. new text end

Laws 2017, chapter 13, article 1, section 4

Sec. 4.

new text begin [62E.23] MINNESOTA PREMIUM SECURITY PLAN. new text end

new text begin Subdivision 1. new text end

new text begin Administration of plan. new text end

new text begin (a) The association is Minnesota's reinsurance entity to administer the state-based reinsurance program referred to as the Minnesota premium security plan. new text end

new text begin (b) The association may apply for any available federal funding for the plan. All funds received by or appropriated to the association shall be deposited in the premium security plan account in section 62E.25, subdivision 1. The association shall notify the chairs and ranking minority members of the legislative committees with jurisdiction over health and human services and insurance within ten days of receiving any federal funds. new text end

new text begin (c) The association must collect or access data from an eligible health carrier that are necessary to determine reinsurance payments, according to the data requirements under subdivision 5, paragraph (c). new text end

new text begin (d) The board must not use any funds allocated to the plan for staff retreats, promotional giveaways, excessive executive compensation, or promotion of federal or state legislative or regulatory changes. new text end

new text begin (e) For each applicable benefit year, the association must notify eligible health carriers of reinsurance payments to be made for the applicable benefit year no later than June 30 of the year following the applicable benefit year. new text end

new text begin (f) On a quarterly basis during the applicable benefit year, the association must provide each eligible health carrier with the calculation of total reinsurance payment requests. new text end

new text begin (g) By August 15 of the year following the applicable benefit year, the association must disburse all applicable reinsurance payments to an eligible health carrier. new text end

new text begin Subd. 2. new text end

new text begin Payment parameters. new text end

new text begin (a) The board must design and adjust the payment parameters to ensure the payment parameters: new text end

new text begin (1) will stabilize or reduce premium rates in the individual market; new text end

new text begin (2) will increase participation in the individual market; new text end

new text begin (3) will improve access to health care providers and services for those in the individual market; new text end

new text begin (4) mitigate the impact high-risk individuals have on premium rates in the individual market; new text end

new text begin (5) take into account any federal funding available for the plan; and new text end

new text begin (6) take into account the total amount available to fund the plan. new text end

new text begin (b) The attachment point for the plan is the threshold amount for claims costs incurred by an eligible health carrier for an enrolled individual's covered benefits in a benefit year, beyond which the claims costs for benefits are eligible for reinsurance payments. The attachment point shall be set by the board at $50,000 or more, but not exceeding the reinsurance cap. new text end

new text begin (c) The coinsurance rate for the plan is the rate at which the association will reimburse an eligible health carrier for claims incurred for an enrolled individual's covered benefits in a benefit year above the attachment point and below the reinsurance cap. The coinsurance rate shall be set by the board at a rate between 50 and 80 percent. new text end

new text begin (d) The reinsurance cap is the threshold amount for claims costs incurred by an eligible health carrier for an enrolled individual's covered benefits, after which the claims costs for benefits are no longer eligible for reinsurance payments. The reinsurance cap shall be set by the board at $250,000 or less. new text end

new text begin (e) The board may adjust the payment parameters to the extent necessary to secure federal approval of the state innovation waiver request in article 1, section 8. new text end

new text begin Subd. 3. new text end

new text begin Operation. new text end

new text begin (a) The board shall propose to the commissioner the payment parameters for the next benefit year by January 15 of the year before the applicable benefit year. The commissioner shall approve or reject the payment parameters no later than 14 days following the board's proposal. If the commissioner fails to approve or reject the payment parameters within 14 days following the board's proposal, the proposed payment parameters are final and effective. new text end

new text begin (b) If the amount in the premium security plan account in section 62E.25, subdivision 1, is not anticipated to be adequate to fully fund the approved payment parameters as of July 1 of the year before the applicable benefit year, the board, in consultation with the commissioner and the commissioner of management and budget, shall propose payment parameters within the available appropriations. The commissioner must permit an eligible health carrier to revise an applicable rate filing based on the final payment parameters for the next benefit year. new text end

new text begin Subd. 4. new text end

new text begin Calculation of reinsurance payments. new text end

new text begin (a) Each reinsurance payment must be calculated with respect to an eligible health carrier's incurred claims costs for an individual enrollee's covered benefits in the applicable benefit year. If the claims costs do not exceed the attachment point, the reinsurance payment is $0. If the claims costs exceed the attachment point, the reinsurance payment shall be calculated as the product of the coinsurance rate and the lesser of: new text end

new text begin (1) the claims costs minus the attachment point; or new text end

new text begin (2) the reinsurance cap minus the attachment point. new text end

new text begin (b) The board must ensure that reinsurance payments made to eligible health carriers do not exceed the total amount paid by the eligible health carrier for any eligible claim. "Total amount paid of an eligible claim" means the amount paid by the eligible health carrier based upon the allowed amount less any deductible, coinsurance, or co-payment, as of the time the data are submitted or made accessible under subdivision 5, paragraph (c). new text end

new text begin Subd. 5. new text end

new text begin Eligible carrier requests for reinsurance payments. new text end

new text begin (a) An eligible health carrier may request reinsurance payments from the association when the eligible health carrier meets the requirements of this subdivision and subdivision 4. new text end

new text begin (b) An eligible health carrier must make requests for reinsurance payments in accordance with any requirements established by the board. new text end

new text begin (c) An eligible health carrier must provide the association with access to the data within the dedicated data environment established by the eligible health carrier under the federal risk adjustment program under United States Code, title 42, section 18063. Eligible health carriers must submit an attestation to the board asserting compliance with the dedicated data environments, data requirements, establishment and usage of masked enrollee identification numbers, and data submission deadlines. new text end

new text begin (d) An eligible health carrier must provide the access described in paragraph (c) for the applicable benefit year by April 30 of each year of the year following the end of the applicable benefit year. new text end

new text begin (e) An eligible health carrier must maintain documents and records, whether paper, electronic, or in other media, sufficient to substantiate the requests for reinsurance payments made pursuant to this section for a period of at least six years. An eligible health carrier must also make those documents and records available upon request from the commissioner for purposes of verification, investigation, audit, or other review of reinsurance payment requests. new text end

new text begin (f) An eligible health carrier may follow the appeals procedure under section 62E.10, subdivision 2a. new text end

new text begin (g) The association may have an eligible health carrier audited to assess the health carrier's compliance with the requirements of this section. The eligible health carrier must ensure that its contractors, subcontractors, or agents cooperate with any audit under this section. If an audit results in a proposed finding of material weakness or significant deficiency with respect to compliance with any requirement of this section, the eligible health carrier may provide a response to the proposed finding within 30 days. Within 30 days of the issuance of a final audit report that includes a finding of material weakness or significant deficiency, the eligible health carrier must: new text end

new text begin (1) provide a written corrective action plan to the association for approval; new text end

new text begin (2) implement the approved plan; and new text end

new text begin (3) provide the association with written documentation of the corrective action once taken. new text end

new text begin Subd. 6. new text end

new text begin Data. new text end

new text begin Government data of the association under this section are private data on individuals, or nonpublic data, as defined under section 13.02, subdivisions 9 or 12. new text end

Laws 2017, chapter 13, article 1, section 5

Sec. 5.

new text begin [62E.24] ACCOUNTING, REPORTS, AND AUDITS OF THE ASSOCIATION. new text end

new text begin Subdivision 1. new text end

new text begin Accounting. new text end

new text begin The board must keep an accounting for each benefit year of all: new text end

new text begin (1) funds appropriated for reinsurance payments and administrative and operational expenses; new text end

new text begin (2) requests for reinsurance payments received from eligible health carriers; new text end

new text begin (3) reinsurance payments made to eligible health carriers; and new text end

new text begin (4) administrative and operational expenses incurred for the plan. new text end

new text begin Subd. 2. new text end

new text begin Reports. new text end

new text begin The board must submit to the commissioner and make available to the public a report summarizing the plan operations for each benefit year by posting the summary on the Minnesota Comprehensive Health Association Web site and making the summary otherwise available by November 1 of the year following the applicable benefit year or 60 calendar days following the final disbursement of reinsurance payments for the applicable benefit year, whichever is later. new text end

new text begin Subd. 3. new text end

new text begin Legislative auditor. new text end

new text begin The Minnesota premium security plan is subject to audit by the legislative auditor. The board must ensure that its contractors, subcontractors, or agents cooperate with the audit. new text end

new text begin Subd. 4. new text end

new text begin Independent external audit. new text end

new text begin (a) The board must engage and cooperate with an independent certified public accountant or CPA firm licensed or permitted under chapter 326A to perform an audit for each benefit year of the plan, in accordance with generally accepted auditing standards. The audit must at a minimum: new text end

new text begin (1) assess compliance with the requirements of sections 62E.21 to 62E.25; and new text end

new text begin (2) identify any material weaknesses or significant deficiencies and address manners in which to correct any such material weaknesses or deficiencies. new text end

new text begin (b) The board, after receiving the completed audit, must: new text end

new text begin (1) provide the commissioner the results of the audit; new text end

new text begin (2) identify to the commissioner any material weakness or significant deficiency identified in the audit and address in writing to the commissioner how the board intends to correct any such material weakness or significant deficiency in compliance with subdivision 5; and new text end

new text begin (3) make public the results of the audit, to the extent the audit contains government data that is public, including any material weakness or significant deficiency and how the board intends to correct the material weakness or significant deficiency, by posting the audit results on the Minnesota Comprehensive Health Association Web site and making the audit results otherwise available. new text end

new text begin Subd. 5. new text end

new text begin Actions on audit findings. new text end

new text begin (a) If an audit results in a finding of material weakness or significant deficiency with respect to compliance by the association with any requirement under sections 62E.21 to 62E.25, the board must: new text end

new text begin (1) provide a written corrective action plan to the commissioner for approval within 60 days of the completed audit; new text end

new text begin (2) implement the corrective action plan; and new text end

new text begin (3) provide the commissioner with written documentation of the corrective actions taken. new text end

new text begin (b) By December 1 of each year, the board must submit a report to the standing committees of the legislature having jurisdiction over health and human services and insurance regarding any finding of material weakness or significant deficiency found in an audit. new text end

Laws 2017, chapter 13, article 1, section 6

Sec. 6.

new text begin [62E.25] ACCOUNTS. new text end

new text begin Subdivision 1. new text end

new text begin Premium security plan account. new text end

new text begin The premium security plan account is created in the special revenue fund of the state treasury. Funds in the account are appropriated annually to the commissioner of commerce for grants to the Minnesota Comprehensive Health Association for the operational and administrative costs and reinsurance payments relating to the start-up and operation of the Minnesota premium security plan. Notwithstanding section 11A.20, all investment income and all investment losses attributable to the investment of the premium security plan account shall be credited to the premium security plan account. new text end

new text begin Subd. 2. new text end

new text begin Deposits. new text end

new text begin Except as provided in subdivision 3, funds received by the commissioner of commerce or other state agency pursuant to the state innovation waiver request in article 1, section 8, shall be deposited in the premium security plan account in subdivision 1. new text end

new text begin Subd. 3. new text end

new text begin Basic health plan trust account. new text end

new text begin Funds received by the commissioner of commerce or other state agency pursuant to the state innovation waiver request in article 1, section 8, that are attributable to the basic health program shall be deposited in the basic health plan trust account in the federal fund. new text end