1.1                          A bill for an act 
  1.2             relating to human services; including MinnesotaCare in 
  1.3             county-based purchasing; modifying provisions for 
  1.4             county-based purchasing; amending Minnesota Statutes 
  1.5             1998, section 256B.692, subdivisions 1, 2, 3, 4, 5, 
  1.6             and 6; repealing Minnesota Statutes 1998, section 
  1.7             256B.69, subdivision 5d. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1998, section 256B.692, 
  1.10  subdivision 1, is amended to read: 
  1.11     Subdivision 1.  [IN GENERAL.] County boards or groups of 
  1.12  county boards may elect to purchase or provide health care 
  1.13  services on behalf of persons eligible for medical assistance 
  1.14  and, general assistance medical care, and MinnesotaCare who 
  1.15  would otherwise be required to or may elect to participate in 
  1.16  the prepaid medical assistance or prepaid general assistance 
  1.17  medical care programs according to sections 256B.69 and 
  1.18  256D.03.  Counties that elect to purchase or provide health care 
  1.19  under this section must provide all services included in prepaid 
  1.20  managed care programs according to sections 256B.69, 
  1.21  subdivisions 1 to 22, and 256D.03, and 256L.03.  County-based 
  1.22  purchasing under this section is governed by section 256B.69, 
  1.23  unless otherwise provided for under this section. 
  1.24     Sec. 2.  Minnesota Statutes 1998, section 256B.692, 
  1.25  subdivision 2, is amended to read: 
  1.26     Subd. 2.  [DUTIES OF THE COMMISSIONER OF HEALTH.] (a) 
  2.1   Notwithstanding chapters 62D and 62N, a county that elects to 
  2.2   purchase medical assistance and, general assistance medical 
  2.3   care, and MinnesotaCare in return for a fixed sum without regard 
  2.4   to the frequency or extent of services furnished to any 
  2.5   particular enrollee is not required to obtain a certificate of 
  2.6   authority under chapter 62D or 62N.  
  2.7      (b) Except as provided in paragraph (e), a county that 
  2.8   elects to purchase medical assistance and, general assistance 
  2.9   medical care services, and MinnesotaCare under this section must 
  2.10  satisfy the commissioner of health that the requirements of 
  2.11  chapter 62D, applicable to health maintenance organizations, or 
  2.12  chapter 62N, applicable to community integrated service 
  2.13  networks, will be met.  
  2.14     (c) A county must also assure the commissioner of health 
  2.15  that the requirements of sections 62J.041; 62J.48; 62J.71 to 
  2.16  62J.73; 62M.01 to 62M.16; all applicable provisions of chapter 
  2.17  62Q, including sections 62Q.07; 62Q.075; 62Q.105; 62Q.1055; 
  2.18  62Q.106; 62Q.11; 62Q.12; 62Q.135; 62Q.14; 62Q.145; 62Q.19; 
  2.19  62Q.23, paragraph (c); 62Q.30; 62Q.43; 62Q.47; 62Q.50; 62Q.52 to 
  2.20  62Q.56; 62Q.58; 62Q.64; and 72A.201 will be met.  
  2.21     (d) All enforcement and rulemaking powers available under 
  2.22  chapters 62D, 62J, 62M, 62N, and 62Q are hereby granted to the 
  2.23  commissioner of health with respect to counties that purchase 
  2.24  medical assistance and, general assistance medical care, and 
  2.25  MinnesotaCare services under this section.  
  2.26     (e) Notwithstanding section 62D.06, the county board is the 
  2.27  governing body of a county-based purchasing program.  A 
  2.28  county-based purchasing program is exempt from the requirements 
  2.29  of sections 62D.041, 62D.042, 62D.045, 62D.08, 62N.28, 62N.29, 
  2.30  and 62N.31 and rules adopted thereunder.  The commissioner shall 
  2.31  adopt rules for county-based purchasing programs relating to 
  2.32  administrative and financial reporting that are specific to 
  2.33  county accounting systems.  The state auditor shall audit a 
  2.34  county-based purchasing program as part of the annual audit of 
  2.35  county records under section 6.48. 
  2.36     Sec. 3.  Minnesota Statutes 1998, section 256B.692, 
  3.1   subdivision 3, is amended to read: 
  3.2      Subd. 3.  [REQUIREMENTS OF THE COUNTY BOARD.] A county 
  3.3   board that intends to purchase or provide health care under this 
  3.4   section, which may include purchasing all or part of these 
  3.5   services from health plans or individual providers on a 
  3.6   fee-for-service basis, or providing these services directly, 
  3.7   must demonstrate the ability to follow and agree to the 
  3.8   following requirements: 
  3.9      (1) purchase all covered services for a fixed payment from 
  3.10  the state that does not exceed the estimated state and federal 
  3.11  cost that would have occurred under the prepaid medical 
  3.12  assistance and general assistance medical care programs; 
  3.13     (2) ensure that covered services are accessible to all 
  3.14  enrollees and that enrollees have a reasonable choice of 
  3.15  providers, health plans, or networks when possible.  If the 
  3.16  county is also a provider of service, the county board shall 
  3.17  develop a process to ensure that providers employed by the 
  3.18  county are not the sole referral source and are not the sole 
  3.19  provider of health care services if other providers, which meet 
  3.20  the same quality and cost requirements are available; 
  3.21     (3) issue payments to participating vendors or networks in 
  3.22  a timely manner; 
  3.23     (4) establish a process to ensure and improve the quality 
  3.24  of care provided; 
  3.25     (5) provide appropriate quality and other required data in 
  3.26  a format required by the state; 
  3.27     (6) provide a system for advocacy, enrollee protection, and 
  3.28  complaints and appeals that is independent of care providers or 
  3.29  other risk bearers and complies with section 256B.69; 
  3.30     (7) for counties within the seven-county metropolitan area, 
  3.31  ensure that the implementation and operation of the Minnesota 
  3.32  senior health options demonstration project, authorized under 
  3.33  section 256B.69, subdivision 23, will not be impeded; 
  3.34     (8) ensure that all recipients that are enrolled in the 
  3.35  prepaid medical assistance or general assistance medical care 
  3.36  program will be transferred to county-based purchasing without 
  4.1   utilizing the department's fee-for-service claims payment 
  4.2   system; 
  4.3      (9) ensure that all recipients who are required to 
  4.4   participate in county-based purchasing are given sufficient 
  4.5   information prior to enrollment in order to make informed 
  4.6   decisions; and 
  4.7      (10) ensure that the state and the medical assistance and, 
  4.8   general assistance medical care, and MinnesotaCare recipients 
  4.9   will be held harmless for the payment of obligations incurred by 
  4.10  the county if the county, or a health plan providing services on 
  4.11  behalf of the county, or a provider participating in 
  4.12  county-based purchasing becomes insolvent, and the state has 
  4.13  made the payments due to the county under this section. 
  4.14     Sec. 4.  Minnesota Statutes 1998, section 256B.692, 
  4.15  subdivision 4, is amended to read: 
  4.16     Subd. 4.  [PAYMENTS TO COUNTIES.] The commissioner shall 
  4.17  pay counties that are purchasing or providing health care under 
  4.18  this section a per capita payment for all enrolled recipients.  
  4.19  Payments shall not exceed payments be equal to rates that 
  4.20  otherwise would have been paid to health plans under medical 
  4.21  assistance and, general assistance medical care, and 
  4.22  MinnesotaCare for that county or region.  The per capita 
  4.23  payments for MinnesotaCare enrollees eligible for the medical 
  4.24  assistance benefit set shall be equal to the medical assistance 
  4.25  per capita payments.  This payment is in addition to any 
  4.26  administrative allocation to counties for education, enrollment, 
  4.27  and advocacy.  The state of Minnesota and the United States 
  4.28  Department of Health and Human Services are not liable for any 
  4.29  costs incurred by a county that exceed the payments to the 
  4.30  county made under this subdivision.  A county whose costs exceed 
  4.31  the payments made by the state, or any affected enrollees or 
  4.32  creditors of that county, shall have no rights under chapter 61B 
  4.33  or section 62D.181.  A county may assign risk for the cost of 
  4.34  care to a third party. 
  4.35     Sec. 5.  Minnesota Statutes 1998, section 256B.692, 
  4.36  subdivision 5, is amended to read: 
  5.1      Subd. 5.  [COUNTY PROPOSALS.] (a) On or before September 1, 
  5.2   1997, a county board that wishes to purchase or provide health 
  5.3   care under this section must submit a preliminary proposal that 
  5.4   substantially demonstrates the county's ability to meet all the 
  5.5   requirements of this section in response to criteria for 
  5.6   proposals issued by the department on or before July 1, 1997.  
  5.7   Counties submitting preliminary proposals must establish a local 
  5.8   planning process that involves input from medical assistance and 
  5.9   general assistance medical care recipients, recipient advocates, 
  5.10  providers and representatives of local school districts, labor, 
  5.11  and tribal government to advise on the development of a final 
  5.12  proposal and its implementation.  
  5.13     (b) The county board must submit a final proposal on or 
  5.14  before July 1, 1998, that demonstrates the ability to meet all 
  5.15  the requirements of this section, including beginning enrollment 
  5.16  on January 1, 1999, unless a delay has been granted under 
  5.17  section 256B.69, subdivision 3a, paragraph (g).  
  5.18     (c) After January 1, 1999, for a county in which the 
  5.19  prepaid medical assistance program is in existence, the county 
  5.20  board must submit a preliminary proposal at least 15 months 
  5.21  prior to termination of health plan contracts in that county and 
  5.22  a final proposal six months prior to the health plan contract 
  5.23  termination date in order to begin enrollment after the 
  5.24  termination.  Nothing in this section shall impede or delay 
  5.25  implementation or continuation of the prepaid medical assistance 
  5.26  and general assistance medical care programs in counties for 
  5.27  which the board does not submit a proposal, or submits a 
  5.28  proposal that is not in compliance with this section. 
  5.29     (d) The commissioner is not required to terminate contracts 
  5.30  for the prepaid medical assistance and prepaid general 
  5.31  assistance medical care programs that begin on or after 
  5.32  September 1, 1997, in a county for which a county board has 
  5.33  submitted a proposal under this paragraph, until two years have 
  5.34  elapsed from the date of initial enrollment in the prepaid 
  5.35  medical assistance and prepaid general assistance medical care 
  5.36  programs. 
  6.1      (e) A county that submitted a final proposal under 
  6.2   paragraph (b) may elect to participate in MinnesotaCare by 
  6.3   filing an addendum, in a form prescribed by the commissioner, 
  6.4   within six months of the effective date of this act. 
  6.5      Sec. 6.  Minnesota Statutes 1998, section 256B.692, 
  6.6   subdivision 6, is amended to read: 
  6.7      Subd. 6.  [COMMISSIONER'S AUTHORITY.] The commissioner may: 
  6.8      (1) reject any preliminary or final proposal that 
  6.9   substantially fails to meet the requirements of this section, or 
  6.10  that the commissioner determines would substantially impair the 
  6.11  state's ability to purchase health care services in other areas 
  6.12  of the state, or would substantially impair an enrollee's choice 
  6.13  of care systems when reasonable choice is possible, or would 
  6.14  substantially impair the implementation and operation of the 
  6.15  Minnesota senior health options demonstration project authorized 
  6.16  under section 256B.69, subdivision 23; and 
  6.17     (2) assume operation of a county's purchasing of health 
  6.18  care for enrollees in medical assistance and, general assistance 
  6.19  medical care, and MinnesotaCare in the event that the contract 
  6.20  with the county is terminated. 
  6.21     Sec. 7.  [REPEALER.] 
  6.22     Minnesota Statutes 1998, section 256B.69, subdivision 5d, 
  6.23  is repealed.