HF 236

as introduced - 91st Legislature (2019 - 2020) Posted on 01/24/2019 03:49pm

A bill for an act
relating to insurance; permitting certain entities to administer unified personal
health premium accounts; modifying availability of coverage provisions for the
small employer market; proposing coding for new law as Minnesota Statutes,
chapter 62W; repealing Minnesota Statutes 2018, sections 62A.303; 62L.12,
subdivisions 3, 4.

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

Section 1.

new text begin [62W.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope of definitions. new text end

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

new text begin Subd. 2. 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. 3. new text end

new text begin Dependent. new text end

new text begin "Dependent" means an individual's spouse or tax dependent.
new text end

new text begin Subd. 4. new text end

new text begin Health insurance. new text end

new text begin "Health insurance" means:
new text end

new text begin (1) individual health insurance; fully insured or self-insured group health coverage; and
individual and group policies that cover cancer, accidents, critical illness, hospital
confinement/medical bridge, short-term disability, long-term care, individual medical, and
high deductible health plans including those that are compatible with health savings accounts;
and
new text end

new text begin (2) any other coverages identified under sections 60A.06, subdivision 1, clause (5)(a);
62Q.01, subdivisions 4a and 6; and 62Q.188.
new text end

new text begin Subd. 5. new text end

new text begin Trustee. new text end

new text begin "Trustee" means an entity that has trust powers under state or federal
law.
new text end

new text begin Subd. 6. new text end

new text begin Unified personal health premium account or account. new text end

new text begin "Unified personal
health premium account" or "account" means a trust account created to receive funds from
multiple sources for the payment of, or reimbursement for, health insurance premiums.
new text end

new text begin Subd. 7. new text end

new text begin Unified personal health premium account administrator or
administrator. new text end

new text begin "Unified personal health premium account administrator" or "administrator"
means an entity that has the authority to administer a unified personal health premium
account.
new text end

Sec. 2.

new text begin [62W.02] REGISTRATION REQUIRED.
new text end

new text begin (a) Only a private-sector entity or individual registered with the commissioner as a
unified personal health premium account administrator may administer an account on behalf
of a resident of this state.
new text end

new text begin (b) To register under this section, a private sector entity or individual must be:
new text end

new text begin (1) a licensed insurance producer, as defined in section 60K.31, subdivision 6, under
the insurance authority described in section 60K.38, subdivision 1, paragraph (b), clause
(1), (2), or (5);
new text end

new text begin (2) a licensed vendor of risk management services or entity administering a self-insurance
or insurance plan under section 60A.23, subdivision 8; or
new text end

new text begin (3) a federally or state-chartered bank or credit union.
new text end

new text begin (c) An applicant to register under this section must pay a fee of $250 for an initial
registration and $50 for each three-year renewal.
new text end

Sec. 3.

new text begin [62W.03] REQUIREMENTS; UNIFIED PERSONAL HEALTH PREMIUM
ACCOUNT ADMINISTRATION.
new text end

new text begin Subdivision 1. new text end

new text begin Nature of arrangements. new text end

new text begin (a) A unified personal health premium account
administrator under contract with an employer must conduct business in accordance with
a written contract.
new text end

new text begin (b) An administrator may conduct business directly with individuals in accordance with
a written agreement.
new text end

new text begin (c) The written agreement between a unified personal health premium account
administrator and its customer must specify the services to be provided to the customer, the
payment for each service including administrative costs, and the timing and method of each
payment or type of payment.
new text end

new text begin (d) An administrator may administer unified personal health premium accounts separately
or in conjunction with other employee benefit services, including services that facilitate and
coordinate tax-preferred payments for health care and coverage under Internal Revenue
Code, sections 105, 106, and 125.
new text end

new text begin (e) An administrator must create and maintain records of receipts, payments, and other
transactions, sufficient to enable the individual to benefit from tax advantages available to
the individual under Internal Revenue Code, sections 105, 106, 125, and other relevant
sections, and under Minnesota income tax law, for health insurance paid by or on behalf of
the individual. The administrator must identify and notify the account holder and contributors
of any applicable tax subsidies and tax credits for which the account holder or contributor
qualifies in connection with the account or items paid for through the account. The records
and procedures must be capable of segregating funds to maintain restrictions on the funds
received from contributors.
new text end

new text begin (f) Individual insurance market products paid for through the account under this section
are not an employer-sponsored plan subject to state or federal group insurance market
requirements.
new text end

new text begin Subd. 2. new text end

new text begin Trust account requirements. new text end

new text begin (a) Contributions to an individual's account may
be made by the individual, the individual's employer or former employer, the individual's
family members or dependents, charitable organizations, or any other source.
new text end

new text begin (b) A contributor to the account may restrict the use of funds the contributor contributes
to the payment of premiums for one or more of the types of health insurance included in
section 62W.01, subdivision 4.
new text end

new text begin (c) A trust created and trustees appointed under this chapter must:
new text end

new text begin (1) have the powers granted under, and must comply with, the provisions of chapter
501B that are relevant to a trust created for purposes of this chapter;
new text end

new text begin (2) allow for financial contributions from multiple sources, including tax-preferred
contributions from individuals and employers and non-tax-preferred contributions from
individuals and other sources;
new text end

new text begin (3) restrict funds to be used exclusively for the benefit of the individual account holder
or the individual's tax dependents;
new text end

new text begin (4) make funds available for the payment of premiums on any type of health insurance
included in section 62W.01, subdivision 4, from any insurance company, subject to any
restriction under paragraph (b);
new text end

new text begin (5) grant the unified personal health premium account administrator authority to direct
payments to insurance companies or to reimburse account owners for qualified health
insurance premium expenses;
new text end

new text begin (6) segregate funds to maintain restrictions on the funds received from contributors; and
new text end

new text begin (7) guarantee that funds contributed by an employer remain available to the account
holder after the account holder's term of employment with the employer ends.
new text end

Sec. 4.

new text begin [62W.04] COORDINATION WITH HEALTHY MINNESOTA PROGRAM.
new text end

new text begin The commissioner of human services must enter into agreements under which unified
personal health premium account administrators may receive public funds for use as subsidies
toward payment of premiums for health coverage provided to eligible individuals who have
a trust account for that purpose.
new text end

Sec. 5. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2018, sections 62A.303; and 62L.12, subdivisions 3 and 4, new text end new text begin are
repealed.
new text end

Sec. 6. new text begin EFFECTIVE DATE.
new text end

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

APPENDIX

Repealed Minnesota Statutes: 19-1119

62A.303 PROHIBITION; SEVERING OF GROUPS.

Section 62L.12, subdivisions 3 and 4, apply to all employer group health plans, as defined in section 62A.011, regardless of the size of the group.

62L.12 PROHIBITED PRACTICES.

Subd. 3.

Agent's licensure.

An agent licensed under chapter 60K or section 62C.17 who knowingly and willfully breaks apart a small group for the purpose of selling individual health plans to eligible employees and dependents of a small employer that meets the participation and contribution requirements of section 62L.03, subdivision 3, is guilty of an unfair trade practice and subject to disciplinary action, including the revocation or suspension of license, under section 60K.43 or 62C.17. The action must be by order and subject to the notice, hearing, and appeal procedures specified in section 60K.43. The action of the commissioner is subject to judicial review as provided under chapter 14. This section does not apply to any action performed by an agent that would be permitted for a health carrier under subdivision 2.

Subd. 4.

Employer prohibition.

A small employer shall not encourage or direct an employee or applicant to:

(1) refrain from filing an application for health coverage when other similarly situated employees may file an application for health coverage;

(2) file an application for health coverage during initial eligibility for coverage, the acceptance of which is contingent on health status, when other similarly situated employees may apply for health coverage, the acceptance of which is not contingent on health status;

(3) seek coverage from another health carrier, including, but not limited to, MCHA; or

(4) cause coverage to be issued on different terms because of the health status or claims experience of that person or the person's dependents.