1.1                          A bill for an act 
  1.2             relating to health; restricting health plan premium 
  1.3             increases; requiring a report; amending Minnesota 
  1.4             Statutes 2002, section 62J.04, by adding a subdivision.
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2002, section 62J.04, is 
  1.7   amended by adding a subdivision to read: 
  1.8      Subd. 1b.  [RESTRICTION ON INCREASES IN PREMIUM 
  1.9   RATES.] Effective for health plans issued or renewed during the 
  1.10  2003 calendar year, no health plan company may increase premium 
  1.11  rates by more than five percent above the rate in effect during 
  1.12  the 2002 calendar year for the same or similar health plan 
  1.13  coverage issued by that health plan company.  Section 62A.02 
  1.14  applies to changes in premium rates made under this 
  1.15  subdivision.  A health plan company that wishes to increase 
  1.16  premium rates for a health plan for calendar year 2003 by more 
  1.17  than five percent may apply to the commissioner for the 
  1.18  authority to do so.  The commissioner may approve such an 
  1.19  application if the commissioner finds that an additional rate 
  1.20  increase is necessary to prevent insolvency of the health plan 
  1.21  company, or to permit adjustments to adverse events that have 
  1.22  affected the health plan and that the health plan company could 
  1.23  not reasonably have anticipated.  The commissioner's decision 
  1.24  regarding increases in premium rates is subject to appeal under 
  1.25  chapter 14.  For purposes of this subdivision, "health plan" has 
  2.1   the meaning given in section 62A.011, subdivision 3, but 
  2.2   includes the coverages described in section 62A.011, subdivision 
  2.3   3, clauses (7) and (10). 
  2.4      Sec. 2.  [RECOMMENDATIONS; LIMITING INCREASES IN PREMIUM 
  2.5   RATES.] 
  2.6      The commissioners of health and commerce shall develop a 
  2.7   schedule for limiting increases in health plan premium rates to 
  2.8   reasonable levels in calendar years 2004, 2005, and 2006.  This 
  2.9   schedule, recommendations on its implementation, and 
  2.10  recommendations for a process by which health plan companies may 
  2.11  apply to raise premium rates above the levels in the schedule 
  2.12  must be submitted to the legislature by January 15, 2003. 
  2.13     Sec. 3.  [EFFECTIVE DATES.] 
  2.14     Sections 1 and 2 are effective the day following final 
  2.15  enactment.