HF 1439

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/22/2021 02:35pm

A bill for an act
relating to state government; modifying contracting provision in certain health
insurance benefit plans; amending Minnesota Statutes 2020, section 43A.23,
subdivision 1.

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

Section 1.

Minnesota Statutes 2020, section 43A.23, subdivision 1, is amended to read:

Subdivision 1.

General.

(a) The commissioner is authorized to request proposals or to
negotiate and to enter into contracts with parties which in the judgment of the commissioner
are best qualified to provide service to the benefit plans. Contracts entered into are not
subject to the requirements of sections 16C.16 to 16C.19. The commissioner may negotiate
premium rates and coverage. The commissioner shall consider the cost of the plans,
conversion options relating to the contracts, service capabilities, character, financial position,
and reputation of the carriers, and any other factors which the commissioner deems
appropriate. Each benefit contract must be for a uniform term of at least one year, but may
be made automatically renewable from term to term in the absence of notice of termination
by either party. A carrier licensed under chapter 62A is exempt from the taxes imposed by
chapter 297I on premiums paid to it by the state.

(b) All self-insured hospital and medical service products must comply with coverage
mandates, data reporting, and consumer protection requirements applicable to the licensed
carrier administering the product, had the product been insured, including chapters 62J,
62M, and 62Q. Any self-insured products that limit coverage to a network of providers or
provide different levels of coverage between network and nonnetwork providers shall comply
with section 62D.123 and geographic access standards for health maintenance organizations
adopted by the commissioner of health in rule under chapter 62D.

(c) Notwithstanding paragraph (b), a self-insured hospital and medical product offered
under sections 43A.22 to 43A.30 is required to extend dependent coverage to an eligible
employee's child to the full extent required under chapters 62A and 62L. Dependent child
coverage must, at a minimum, extend to an eligible employee's dependent child to the
limiting age as defined in section 62Q.01, subdivision 2a, disabled children to the extent
required in sections 62A.14 and 62A.141, and dependent grandchildren to the extent required
in sections 62A.042 and 62A.302.

(d) Beginning January 1, 2010, the health insurance benefit plans offered in the
commissioner's plan under section 43A.18, subdivision 2, and the managerial plan under
section 43A.18, subdivision 3, deleted text begin must deleted text end new text begin may new text end include an option for a health plan that is compatible
with the definition of a high-deductible health plan in section 223 of the United States
Internal Revenue Code.