1.1                          A bill for an act 
  1.2             relating to health; permitting small employers to 
  1.3             purchase coverage under the MinnesotaCare program for 
  1.4             eligible employees; repealing the small employer 
  1.5             alternative health benefit plan pilot project; 
  1.6             proposing coding for new law in Minnesota Statutes, 
  1.7             chapter 256L; repealing Minnesota Statutes 1999 
  1.8             Supplement, section 62L.055. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  [256L.19] [OPTION FOR SMALL EMPLOYERS.] 
  1.11     Subdivision 1.  [DEFINITIONS.] For purposes of this 
  1.12  section, the following definitions apply: 
  1.13     (1) "eligible employee" means an employee who meets the 
  1.14  definition of employee as defined in section 62L.02, subdivision 
  1.15  13a, and who has satisfied all employer participation and 
  1.16  eligibility requirements; 
  1.17     (2) "small employer" has the same meaning as given in 
  1.18  section 62L.02, subdivision 26; and 
  1.19     (3) "dependent" has the same meaning as given in section 
  1.20  62L.02, subdivision 11. 
  1.21     Subd. 2.  [OPTION.] A small employer may purchase coverage 
  1.22  under the MinnesotaCare program for all eligible employees and 
  1.23  their dependents.  The cost of the premium for each eligible 
  1.24  employee and the employee's dependents must equal the maximum 
  1.25  premium as defined in section 256L.15, subdivision 2, paragraph 
  1.26  (b). 
  1.27     Subd. 3.  [EXEMPTION.] Upon payment of the premium, the 
  2.1   eligible employee and the employee's dependents shall be 
  2.2   enrolled in the MinnesotaCare program regardless of income or 
  2.3   assets.  The barriers established under section 256L.07, 
  2.4   subdivision 2 or 3, shall not apply to enrollees eligible under 
  2.5   this section. 
  2.6      Subd. 4.  [COPAYMENTS.] (a) The inpatient hospital annual 
  2.7   benefit limit described in section 256L.03, subdivision 3, and 
  2.8   the copayments and coinsurance described in section 256L.03, 
  2.9   subdivision 5, shall not apply to enrollees eligible under this 
  2.10  section. 
  2.11     (b) The following copayments and coinsurance shall apply to 
  2.12  enrollees eligible under this section: 
  2.13     (1) ten percent of the paid charges for inpatient hospital 
  2.14  services for adult enrollees, subject to an annual inpatient 
  2.15  out-of-pocket maximum of $1,000 per individual and $3,000 per 
  2.16  family; 
  2.17     (2) $3 per prescription for adult enrollees; 
  2.18     (3) $25 for eyeglasses for adult enrollees; and 
  2.19     (4) 50 percent of the fee-for-service rate for adult dental 
  2.20  care services other than preventive care services. 
  2.21     Sec. 2.  [REPEALER.] 
  2.22     Minnesota Statutes 1999 Supplement, section 62L.055, is 
  2.23  repealed. 
  2.24     Sec. 3.  [EFFECTIVE DATE.] 
  2.25     Section 1 is effective on January 1, 2001.  Section 2 is 
  2.26  effective the day following final enactment.