HF 2824

as introduced - 91st Legislature (2019 - 2020) Posted on 04/05/2019 10:28am

A bill for an act
relating to insurance; authorizing a health carrier to offer a reference-based pricing
health plan in the individual and small group markets; proposing coding for new
law in Minnesota Statutes, chapter 62K.

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

Section 1.

new text begin [62K.16] REFERENCE-BASED PRICING HEALTH PLAN.
new text end

new text begin Subdivision 1. new text end

new text begin General. new text end

new text begin Notwithstanding any law to the contrary and upon any necessary
federal approval, a health carrier may offer in the individual and small group market a
reference-based pricing health plan that meets the requirements of this section.
new text end

new text begin Subd. 2. new text end

new text begin Provider participation. new text end

new text begin (a) An enrollee of a reference-based pricing health
plan may access any health care provider who has agreed to a reimbursement rate specified
in this section and any other terms and conditions offered by the health carrier. Any terms
and conditions offered by the health carrier must be the same for all health care providers
who agree to participate in the health plan.
new text end

new text begin (b) A health carrier may require a participating provider to meet reasonable data,
utilization review, and quality assurance requirements.
new text end

new text begin (c) A provider who agrees to participate must provide services to all enrollees of the
health plan.
new text end

new text begin Subd. 3. new text end

new text begin Reimbursement rates. new text end

new text begin (a) The reimbursement rates offered to providers who
agree to participate in a reference-based pricing health plan must be based on a percentage
relative to the rates defined by the most recent Medicare reimbursement schedules as
promulgated by the Centers for Medicare and Medicaid Services.
new text end

new text begin (b) For services that do not have a corresponding Medicare reimbursement value, the
health carrier must negotiate the rates based on other fee schedules used within the health
care market.
new text end

new text begin (c) If a reference-based pricing health plan's reimbursement rate is at least 120 percent
above the Medicare rate and the health plan is offered in all counties throughout the state,
the health plan is exempt from the geographic and network adequacy requirements under
section 62K.10.
new text end

new text begin (d) A provider who agrees to participate in the health plan agrees to accept the negotiated
rate as payment in full under the terms of the health plan in accordance with section 62K.11.
new text end

new text begin Subd. 4. new text end

new text begin Conditions. new text end

new text begin (a) Nothing in this section requires a provider to participate in a
reference-based pricing health plan. No health carrier shall require, as a condition of
participation in any other health plan, product, or other arrangement offered by the health
carrier, new text end new text begin that the provider participate in a reference-based pricing health plan.
new text end

new text begin (b) Nothing in this section shall be construed to require a health carrier to provide
coverage for a service or treatment that is not covered under the enrollee's health plan.
new text end

new text begin (c) A reference-based pricing health plan may impose cost-sharing requirements including
co-payments, deductibles, and coinsurance and reasonable referral and prior authorization
requirements.
new text end

new text begin Subd. 5. new text end

new text begin Definitions. new text end

new text begin For purposes of this section, "provider" has the meaning given in
section 62J.03, subdivision 8.
new text end