2006 Minnesota Statutes

CHAPTER 62R. HEALTH CARE COOPERATIVES

62R.01 STATEMENT OF LEGISLATIVE PURPOSE AND INTENT.
The legislature finds that the goals of containing health care costs, improving the quality
of health care, and increasing the access of Minnesota citizens to health care services reflected
under chapters 62J and 62N may be further enhanced through the promotion of health care
cooperatives. The legislature further finds that locally based and controlled efforts among health
care providers, local businesses, units of local government, and health care consumers, can
promote the attainment of the legislature's goals of health care reform, and takes notice of the long
history of successful operations of cooperative organizations in this state. Therefore, in order to
encourage cooperative efforts which are consistent with the goals of health care reform, including
efforts among health care providers as sellers of health care services and efforts of consumers as
buyers of health care services and health plan coverage, and to encourage the formation of and
increase the competition among health plans in Minnesota, the legislature enacts the Minnesota
Health Care Cooperative Act.
History: 1994 c 625 art 11 s 1

62R.02 CITATION.
This chapter may be cited as the "Minnesota Health Care Cooperative Act."
History: 1994 c 625 art 11 s 2

62R.03 APPLICABILITY OF OTHER LAWS.
    Subdivision 1. Minnesota Cooperative Law. A health care cooperative is subject to chapter
308A unless otherwise provided in this chapter. After incorporation, a health care cooperative
shall enjoy the powers and privileges and shall be subject to the duties and liabilities of other
cooperatives organized under chapter 308A, to the extent applicable and except as limited or
enlarged by this chapter. If any provision of this chapter conflicts with a provision of chapter
308A, the provision of this chapter takes precedence.
    Subd. 2. Health plan licensure and operation. A health care network cooperative must
be licensed as a health maintenance organization licensed under chapter 62D, a nonprofit health
service plan corporation licensed under chapter 62C, or a community integrated service network
licensed under chapter 62N, at the election of the health care network cooperative. The health care
network cooperative shall be subject to the duties and liabilities of health plans licensed pursuant
to the chapter under which the cooperative elects to be licensed, to the extent applicable and
except as limited or enlarged by this chapter. If any provision of any chapter under which the
cooperative elects to be licensed conflicts with the provisions of this chapter, the provisions of
this chapter take precedence. A health care network cooperative, upon licensure as provided in
this subdivision, is a contributing member of the Minnesota Comprehensive Health Association,
on the same basis as other entities having the same licensure.
    Subd. 3. Health provider cooperatives. A health provider cooperative shall not be
considered a mutual insurance company under chapter 60A, a health maintenance organization
under chapter 62D, a nonprofit health services corporation under chapter 62C, or a community
integrated service network under chapter 62N. A health provider network shall not be considered
to violate any limitations on the corporate practice of medicine. Health care service contracts
under section 62R.06 shall not be considered to violate section 62J.23.
History: 1994 c 625 art 11 s 3; 1997 c 225 art 2 s 62

62R.04 DEFINITIONS.
    Subdivision 1. Scope. For purposes of this chapter, the terms defined in this section have
the meanings given.
    Subd. 2. Health care cooperative. "Health care cooperative" means a health care network
cooperative or a health provider cooperative.
    Subd. 3. Health care network cooperative. "Health care network cooperative" means
a corporation organized under this chapter and licensed in accordance with section 62R.03,
subdivision 2 . A health care network cooperative shall not have more than 50,000 enrollees,
unless exceeding the enrollment limit is necessary to comply with guaranteed issue or guaranteed
renewal requirements of chapter 62L or section 62A.65.
    Subd. 4. Health provider cooperative. "Health provider cooperative" means a corporation
organized under this chapter and operated on a cooperative plan to market health care services to
purchasers of those services.
    Subd. 5. Commissioner. Unless otherwise specified, "commissioner" means the
commissioner of health for a health care network cooperative licensed under chapter 62D or
62N and the commissioner of commerce for a health care network cooperative licensed under
chapter 62C.
    Subd. 6. Health carrier. "Health carrier" has the meaning provided in section 62A.011.
    Subd. 7. Health care providing entity. "Health care providing entity" means a participating
entity that provides health care to enrollees of a health care cooperative.
History: 1994 c 625 art 11 s 4

62R.05 POWERS.
In addition to the powers enumerated under section 308A.201, a health care cooperative
shall have all of the powers granted a nonprofit corporation under section 317A.161, except to the
extent expressly inconsistent with the provisions of chapter 308A.
History: 1994 c 625 art 11 s 5

62R.06 HEALTH CARE SERVICE CONTRACTS.
    Subdivision 1. Provider contracts. A health provider cooperative and its licensed members
may execute marketing and service contracts requiring the provider members to provide some
or all of their health care services through the provider cooperative to the enrollees, members,
subscribers, or insureds, of a health care network cooperative, community integrated service
network, nonprofit health service plan, health maintenance organization, accident and health
insurance company, or any other purchaser, including the state of Minnesota and its agencies,
instruments, or units of local government. Each purchasing entity is authorized to execute
contracts for the purchase of health care services from a health provider cooperative in accordance
with this section. A contract between a provider cooperative and a purchaser may provide for
payment by the purchaser to the health provider cooperative on a capitated or similar risk-sharing
basis, by fee-for-service arrangements, or by other financial arrangements authorized under
state law. Each contract between a provider cooperative and a purchaser shall be filed by the
provider network cooperative with the commissioner of health and is subject to the provisions of
section 62D.19.
    Subd. 2. No network limitation. A health care network cooperative may contract with any
health provider cooperative and may contract with any other licensed health care provider to
provide health care services for its enrollees.
    Subd. 3. Restraint of trade. Subject to section 62R.08, a health care provider cooperative
is not a combination in restraint of trade, and any contracts or agreements between a health
care provider cooperative and its members regarding the price the cooperative will charge to
purchasers of its services, or regarding the prices the members will charge to the cooperative, or
regarding the allocation of gains or losses among the members, or regarding the delivery, quality,
allocation, or location of services to be provided, are not contracts that unreasonably restrain trade.
History: 1994 c 625 art 11 s 6; 1997 c 225 art 2 s 62; 1999 c 245 art 2 s 14

62R.07 RELICENSURE.
(a) A health care network cooperative licensed under chapter 62C or 62D may relinquish that
license and be granted a new license as a community integrated service network under chapter
62N in accordance with this section, provided that the cooperative meets all requirements for
licensure as a network under chapter 62N, to the extent not expressly inconsistent with the
provisions of chapter 308A.
(b) The relicensure shall be effective at the time specified in the plan of relicensure, which
must not be earlier than the date upon which the previous license is surrendered.
(c) Upon the relicensure of the cooperative as a community integrated service network:
(1) all existing group and individual enrollee benefit contracts in force on the effective date
of the relicensure shall continue in effect and with the same terms and conditions, notwithstanding
the cooperative's new licensure as a network, until the date of each contract's next renewal or
amendment, but no later than one year from the date of the relicensure. At this time, each benefit
contract then in force must be amended to comply with all statutory and regulatory requirements
for network benefit contracts as of that date; and
(2) all contracts between the cooperative and any health care providing entity, including a
health care provider cooperative, in force on the effective date of relicensure shall remain in
effect under the cooperative's new licensure as a network until the date of the next renewal or
amendment of that contract, but no later than one year from the date of relicensure.
(d) Except as otherwise provided in this section, nothing in the relicensure of a health care
network cooperative shall in any way affect its corporate existence or any of its contracts, rights,
privileges, immunities, powers or franchises, debts, duties or other obligations or liabilities.
History: 1994 c 625 art 11 s 7; 1997 c 225 art 2 s 62

62R.08 PROHIBITED PRACTICES.
(a) It shall be unlawful for any person, company, or corporation, or any agent, officer, or
employee thereof, to coerce or require any person to agree, either in writing or orally, not to
join or become or remain a member of, any health care provider cooperative, as a condition of
securing or retaining a contract for health care services with the person, firm, or corporation.
(b) It shall be unlawful for any person, company, or corporation, or any combination of
persons, companies, or corporations, or any agents, officers, or employees thereof, to engage in
any acts of coercion, intimidation, or boycott of, or any refusal to deal with, any health care
providing entity arising from that entity's actual or potential participation in a health care network
cooperative or health care provider cooperative.
(c) It shall be unlawful for any health care network cooperative, other than a health
care network cooperative operating on an employed, staff model basis, to require that its
participating providers provide health care services exclusively to or through the health care
network cooperative. It shall be unlawful for any health care provider cooperative to require
that its members provide health care services exclusively to or through the health care provider
cooperative.
(d) It shall be unlawful for any health care provider cooperative to engage in any acts of
coercion, intimidation, or boycott of, or any concerted refusal to deal with, any health plan
company seeking to contract with the cooperative on a competitive, reasonable, and nonexclusive
basis.
(e) The prohibitions in this section are in addition to any conduct that violates sections
325D.49 to 325D.66.
(f) This section shall be enforced in accordance with sections 325D.56 to 325D.65.
History: 1994 c 625 art 11 s 8

62R.17 [Expired]

62R.18 [Expired]

62R.19 [Expired]

62R.20 [Expired]

62R.21 [Expired]

62R.22 [Expired]

62R.23 [Expired]

62R.24 [Expired]

62R.25 [Expired]

62R.26 [Obsolete]