1.1                          A bill for an act 
  1.2             relating to commerce; clarifying that a small employer 
  1.3             alternative benefit plan may exclude maternity 
  1.4             benefits; amending Minnesota Statutes 2000, section 
  1.5             62L.055. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 62L.055, is 
  1.8   amended to read: 
  1.9      62L.055 [SMALL EMPLOYER ALTERNATIVE BENEFIT PLANS; PILOT 
  1.10  PROJECT.] 
  1.11     (a) Notwithstanding any provision of this chapter or other 
  1.12  law to the contrary, the commissioner of commerce shall develop 
  1.13  a pilot project by January 1, 2000, to authorize health carriers 
  1.14  to offer alternative health benefit plans to small employers if 
  1.15  the following requirements are satisfied: 
  1.16     (1) the health carrier is assessed less than three percent 
  1.17  of the total amount assessed by the Minnesota comprehensive 
  1.18  health association; 
  1.19     (2) the health plans must be offered in compliance with 
  1.20  this chapter, except as otherwise permitted in this section; 
  1.21     (3) the health plans to be offered must be designed to 
  1.22  enable employers and covered persons to better manage costs and 
  1.23  coverage options through the use of copays, deductibles, and 
  1.24  other cost-sharing arrangements; 
  1.25     (4) the health plans must be issued and administered in 
  2.1   compliance with sections 62E.141; 62L.03, subdivision 6; and 
  2.2   62L.12, subdivisions 3 and 4, relating to prohibitions against 
  2.3   enrolling in the Minnesota comprehensive health association 
  2.4   persons eligible for employer group coverage; 
  2.5      (5) the health plans must meet a 71 percent loss ratio for 
  2.6   small employers with fewer than ten employees, and a 75 percent 
  2.7   loss ratio for all other plans; 
  2.8      (6) the health plans may alter or eliminate coverages that 
  2.9   would otherwise be required by law, other than the requirement 
  2.10  that care provided for covered services by osteopaths, 
  2.11  optometrists, and chiropractors, or registered nurses meeting 
  2.12  the requirements of section 62A.15, subdivision 3a, be 
  2.13  reimbursed on a nondiscriminatory basis; and 
  2.14     (7) each health plan must be approved by the commissioner 
  2.15  of commerce. 
  2.16     (b)(i) The definitions in section 62L.02 apply to this 
  2.17  section as modified by this section. 
  2.18     (ii) Notwithstanding section 363.03, a health plan 
  2.19  authorized under this section may exclude maternity benefit 
  2.20  coverage.  The commissioner of commerce shall not fail to 
  2.21  approve a health plan under this section based solely on the 
  2.22  fact that the plan excludes maternity benefits. 
  2.23     (c) This section expires August 1, 2003.