1.1                          A bill for an act 
  1.2             relating to insurance; regulating the Minnesota 
  1.3             comprehensive health association; modifying the 
  1.4             definition of contributing member; permitting 
  1.5             extensions of writing carrier contract period; 
  1.6             providing subsidies to reduce assessments borne by 
  1.7             individuals and small businesses; requiring reports; 
  1.8             providing for a study; appropriating money; amending 
  1.9             Minnesota Statutes 2000, sections 43A.31, subdivision 
  1.10            2; 62E.02, subdivision 23; 62E.10, subdivision 1; and 
  1.11            62E.13, subdivision 3. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13     Section 1.  Minnesota Statutes 2000, section 43A.31, 
  1.14  subdivision 2, is amended to read: 
  1.15     Subd. 2.  [COMMISSIONER REPORTS.] (a) The commissioner 
  1.16  shall transmit a report each biennium to the legislative 
  1.17  commission on employee relations concerning the operation of 
  1.18  sections 43A.22 to 43A.30, including a study of local and 
  1.19  statewide market trends regarding provider concentration, costs, 
  1.20  and other factors as they may relate to the state's health 
  1.21  benefits purchasing strategy.  The commissioner shall consult 
  1.22  with the commissioners of commerce and health in the conduct of 
  1.23  this study.  The commissioner shall also report the number, 
  1.24  type, and disposition of complaints relating to the insurance 
  1.25  programs offered by the commissioner.  
  1.26     (b) The commissioner shall provide an annual report to the 
  1.27  legislature describing the fiscal impact that any self-insured 
  1.28  hospital and medical plan offered under sections 43A.22 to 
  2.1   43A.31 has on the Minnesota comprehensive health association, 
  2.2   including, but not limited to, the distribution of the 
  2.3   association's annual losses. 
  2.4      Sec. 2.  Minnesota Statutes 2000, section 62E.02, 
  2.5   subdivision 23, is amended to read: 
  2.6      Subd. 23.  [CONTRIBUTING MEMBER.] "Contributing member" 
  2.7   means those companies regulated under chapter 62A and offering, 
  2.8   selling, issuing, or renewing policies or contracts of accident 
  2.9   and health insurance; health maintenance organizations regulated 
  2.10  under chapter 62D, including those owned or operated by entities 
  2.11  defined under section 62D.02, subdivision 11; nonprofit health 
  2.12  service plan corporations regulated under chapter 62C; community 
  2.13  integrated service networks regulated under chapter 62N; 
  2.14  fraternal benefit societies regulated under chapter 64B; the 
  2.15  state of Minnesota with respect to coverage offered under 
  2.16  sections 43A.22 to 43A.31 and under the Minnesota employees 
  2.17  insurance program established in section 43A.317, effective July 
  2.18  1, 1993; and joint self-insurance plans regulated under chapter 
  2.19  62H; and political subdivisions with respect to self-insurance 
  2.20  plans they sponsor under section 471.617, subdivisions 1 and 2.  
  2.21  For the purposes of determining liability of contributing 
  2.22  members pursuant to section 62E.11, payments received from or on 
  2.23  behalf of Minnesota residents for coverage by a health 
  2.24  maintenance organization or community integrated service network 
  2.25  and the total cost of self-insurance as defined in Minnesota 
  2.26  Rules, part 2740.0100, subpart 58, shall be considered to be 
  2.27  accident and health insurance premiums. 
  2.28     Sec. 3.  Minnesota Statutes 2000, section 62E.10, 
  2.29  subdivision 1, is amended to read: 
  2.30     Subdivision 1.  [CREATION; TAX EXEMPTION.] There is 
  2.31  established a comprehensive health association to promote the 
  2.32  public health and welfare of the state of Minnesota with 
  2.33  membership consisting of all insurers; self-insurers; 
  2.34  fraternals; joint self-insurance plans regulated under chapter 
  2.35  62H; political subdivisions with respect to self-insurance plans 
  2.36  they operate under section 471.617; the state of Minnesota with 
  3.1   respect to coverage offered under sections 43A.22 to 43A.31 and 
  3.2   under the Minnesota employees insurance program established in 
  3.3   section 43A.317, effective July 1, 1993; health maintenance 
  3.4   organizations regulated under chapter 62D, including those owned 
  3.5   or operated by entities defined under section 62D.02, 
  3.6   subdivision 11; and community integrated service networks, 
  3.7   licensed or authorized to do business in this state.  The 
  3.8   comprehensive health association is exempt from the taxes 
  3.9   imposed under chapter 297I, and any other laws of this state and 
  3.10  all property owned by the association is exempt from taxation. 
  3.11     Sec. 4.  Minnesota Statutes 2000, section 62E.13, 
  3.12  subdivision 3, is amended to read: 
  3.13     Subd. 3.  [DUTIES OF WRITING CARRIER.] The writing carrier 
  3.14  shall perform all administrative and claims payment functions 
  3.15  required by this section.  The writing carrier shall provide 
  3.16  these services for a period of three years, unless a request to 
  3.17  terminate is approved by the commissioner.  The three-year 
  3.18  contract period may be renewed for a second three-year period 
  3.19  without a competitive bidding process upon the approval of the 
  3.20  commissioner of commerce and the consent of the association and 
  3.21  the writing carrier.  The renewal may include amendments agreed 
  3.22  to by the association and the writing carrier and approved by 
  3.23  the commissioner.  At any time, either the writing carrier or 
  3.24  the association may submit a request to terminate to the 
  3.25  commissioner.  The commissioner shall approve or deny a request 
  3.26  to terminate within 90 days of its receipt.  A failure to make a 
  3.27  final decision on a request to terminate within the specified 
  3.28  period shall be deemed to be an approval.  Six months prior to 
  3.29  the expiration of each three-year period, the association shall 
  3.30  invite submissions of policy forms from members of the 
  3.31  association, including the writing carrier.  The association 
  3.32  shall follow the provisions of subdivision 2 in selecting a 
  3.33  writing carrier for the subsequent three-year period. 
  3.34     Sec. 5.  [REPORTS.] 
  3.35     The commissioners of health, commerce, employee relations, 
  3.36  and human services shall each report to the legislature by 
  4.1   January 15, 2002, on a plan for ongoing financial and 
  4.2   programmatic participation in the Minnesota comprehensive health 
  4.3   association. 
  4.4      Sec. 6.  [APPROPRIATIONS.] 
  4.5      Subdivision 1.  [DEPARTMENT OF COMMERCE; MINNESOTA 
  4.6   COMPREHENSIVE HEALTH ASSOCIATION OFFSET.] $14,750,000 in fiscal 
  4.7   year 2002 and $15,000,000 in fiscal year 2003 is appropriated 
  4.8   from the health care access fund to the commissioner of 
  4.9   commerce.  This appropriation is for a grant to the Minnesota 
  4.10  comprehensive health association and shall be made available on 
  4.11  January 1 of each fiscal year to be used to offset the annual 
  4.12  assessments for calendar years 2002 and 2003 that are required 
  4.13  to be paid by each contributing member in accordance with 
  4.14  Minnesota Statutes, section 62E.11.  This appropriation shall 
  4.15  not become part of the base for the 2004-2005 biennium. 
  4.16     Subd. 2.  [DEPARTMENT OF HEALTH; STUDY OF INDIVIDUAL 
  4.17  INSURANCE MARKET.] (a) $250,000 in fiscal year 2002 is 
  4.18  appropriated from the health care access fund to the 
  4.19  commissioner of health for an actuarial and policy study of the 
  4.20  feasibility and cost impact of establishing a private insurance 
  4.21  access pool for the individual health insurance market. 
  4.22     (b) The commissioner of health shall provide a written 
  4.23  report and recommendations to the legislature, in compliance 
  4.24  with Minnesota Statutes, section 3.195, no later than February 
  4.25  1, 2002. 
  4.26     Sec. 7.  [EFFECTIVE DATE.] 
  4.27     Sections 1, 4, and 5 are effective immediately.  Sections 2 
  4.28  and 3 are effective July 1, 2005.