1.1                          A bill for an act 
  1.2             relating to insurance; requiring an affirmative 
  1.3             provider consent to participate in a network under a 
  1.4             category of coverage; requiring disclosure of changes 
  1.5             in a provider's contract; amending Minnesota Statutes 
  1.6             2000, section 62Q.74, subdivisions 2, 3, and 4; 
  1.7             proposing coding for new law in Minnesota Statutes, 
  1.8             chapter 62Q.  
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 2000, section 62Q.74, 
  1.11  subdivision 2, is amended to read: 
  1.12     Subd. 2.  [PROVIDER CONSENT REQUIRED.] (a) No network 
  1.13  organization shall require a health care provider to participate 
  1.14  in a network under a category of coverage that differs from the 
  1.15  category or categories of coverage to which the existing 
  1.16  contract between the network organization and the provider 
  1.17  applies, without the affirmative consent of the provider 
  1.18  obtained under subdivision 3.  
  1.19     (b) This section does not apply to situations in which the 
  1.20  network organization wishes the provider to participate in a new 
  1.21  or different plan or other arrangement within a category of 
  1.22  coverage that is already provided for in an existing contract 
  1.23  between the network organization and the provider. 
  1.24     (c) Compliance with this section may not be waived in a 
  1.25  contract or otherwise. 
  1.26     Sec. 2.  Minnesota Statutes 2000, section 62Q.74, 
  1.27  subdivision 3, is amended to read: 
  2.1      Subd. 3.  [CONSENT PROCEDURE.] (a) The network 
  2.2   organization, if it wishes to apply an existing contract with a 
  2.3   provider to a different category of coverage, shall first notify 
  2.4   the provider in writing.  The written notice must include at 
  2.5   least the following: 
  2.6      (1) the network organization's name, address, and telephone 
  2.7   number, and the name of the specific network, if it differs from 
  2.8   that of the network organization; 
  2.9      (2) a description of the proposed new category of coverage; 
  2.10     (3) the names of all payers expected by the network 
  2.11  organization to use the network for the new category of 
  2.12  coverage; 
  2.13     (4) the approximate number of current enrollees of the 
  2.14  network organization in that category of coverage within the 
  2.15  provider's geographical area; 
  2.16     (5) a disclosure of all contract terms of the proposed new 
  2.17  category of coverage, including the discount or reduced fees, 
  2.18  care guidelines, utilization review criteria, prior 
  2.19  authorization process, and dispute resolution process; 
  2.20     (6) a form for the provider's convenience in accepting or 
  2.21  declining participation in the proposed new category of 
  2.22  coverage, provided that the provider need not use that form in 
  2.23  responding; and 
  2.24     (7) a statement informing the provider of the provisions of 
  2.25  paragraph (b). 
  2.26     (b) If the provider does not decline participation within 
  2.27  30 days after the postmark date of the notice, the provider is 
  2.28  deemed to have accepted the proposed new category of 
  2.29  coverage Unless the provider has affirmatively agreed to 
  2.30  participate within 60 days after the postmark date of the 
  2.31  notice, the provider is deemed to have not accepted the proposed 
  2.32  new category of coverage. 
  2.33     Sec. 3.  Minnesota Statutes 2000, section 62Q.74, 
  2.34  subdivision 4, is amended to read: 
  2.35     Subd. 4.  [CONTRACT TERMINATION RESTRICTED.] (a) A network 
  2.36  organization must not terminate an existing contract with a 
  3.1   provider, or fail to honor the contract in good faith, based 
  3.2   solely on the provider's decision not to accept a proposed new 
  3.3   category of coverage.  The most recent agreed-upon contractual 
  3.4   obligations remain in force until the existing contract's 
  3.5   renewal or termination date. 
  3.6      (b) If a provider declines to participate in a category of 
  3.7   coverage, the network organization must permit the provider the 
  3.8   opportunity to participate in that category of coverage when the 
  3.9   organization determines a demographic or geographic need. 
  3.10     Sec. 4.  [62Q.745] [PROVIDER CONTRACT AMENDMENT 
  3.11  DISCLOSURE.] 
  3.12     (a) Any amendment or change in the terms of an existing 
  3.13  contract between a network organization and a health care 
  3.14  provider must be disclosed to the provider. 
  3.15     (b) Any amendment or change in the contract that alters the 
  3.16  financial reimbursement or performance requirements must be 
  3.17  disclosed to the provider before the amendment or change is 
  3.18  deemed to be in effect. 
  3.19     (c) For purposes of this section, "network organization" 
  3.20  and "health care provider" or "provider" have the meanings given 
  3.21  in section 62Q.74.