1.1                          A bill for an act 
  1.2             relating to insurance; expanding the availability and 
  1.3             quality of long-term care insurance; establishing a 
  1.4             legislative task force; amending Minnesota Statutes 
  1.5             2002, sections 43A.318, subdivision 1; 62A.48, by 
  1.6             adding a subdivision; 62S.05, by adding a subdivision; 
  1.7             proposing coding for new law in Minnesota Statutes, 
  1.8             chapters 62A; 62S. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 2002, section 43A.318, 
  1.11  subdivision 1, is amended to read: 
  1.12     Subdivision 1.  [DEFINITIONS.] (a)  [SCOPE.] For the 
  1.13  purposes of this section, the terms defined have the meaning 
  1.14  given them. 
  1.15     (b)  [ADVISORY COMMITTEE; COMMITTEE.] "Advisory committee" 
  1.16  or "committee" means the committee created under subdivision 3. 
  1.17     (c)  [COMMITTEE MEMBER; MEMBER.] "Committee member" or 
  1.18  "member" means a person serving on the advisory committee 
  1.19  created under subdivision 3. 
  1.20     (d)  [ELIGIBLE PERSON.] "Eligible person" means: 
  1.21     (1) a person who is eligible for insurance and benefits 
  1.22  under section 43A.24 or for insurance and benefits provided to 
  1.23  employees of a political subdivision of this state; 
  1.24     (2) a person who at the time of separation from employment 
  1.25  was eligible to purchase coverage at personal expense under 
  1.26  section 43A.27, subdivision 3, regardless of whether the person 
  1.27  elected to purchase this coverage; 
  2.1      (3) a spouse of a person described in clause (1) or (2), 
  2.2   regardless of the enrollment status in the program of the person 
  2.3   described in clause (1) or (2); or 
  2.4      (4) a parent of a person described in clause (1), 
  2.5   regardless of the enrollment status in the program of the person 
  2.6   described in clause (1). 
  2.7      (e)  [PROGRAM.] "Program" means the statewide public 
  2.8   employees long-term care insurance program created under 
  2.9   subdivision 2. 
  2.10     (f)  [QUALIFIED VENDOR.] "Qualified vendor" means an entity 
  2.11  licensed or authorized to underwrite, provide, or administer 
  2.12  group long-term care insurance benefits in this state. 
  2.13     Sec. 2.  Minnesota Statutes 2002, section 62A.48, is 
  2.14  amended by adding a subdivision to read: 
  2.15     Subd. 12.  [GUARANTEED ISSUE TO PERSONS WITH CHRONIC 
  2.16  ILLNESSES.] Insurers offering long-term care policies in this 
  2.17  state must offer coverage to applicants who have a preexisting 
  2.18  condition and are not receiving long-term care.  The coverage 
  2.19  may impose a waiting period for benefits related to the 
  2.20  preexisting condition not to exceed the maximum waiting period 
  2.21  permitted by law.  The premium charged must not be more than two 
  2.22  times the premium that would be charged to the person if the 
  2.23  person did not have the preexisting condition. 
  2.24     Sec. 3.  [62A.545] [FIVE-YEAR REVIEW REQUIRED.] 
  2.25     (a) An insurer that issues an individual long-term care 
  2.26  policy in this state must, either directly or through an 
  2.27  insurance producer, contact the insured no later than five years 
  2.28  after issuance of the policy, and every five years after that, 
  2.29  for the purpose of a review of the suitability of the policy for 
  2.30  the insured at the time of the review, as described in this 
  2.31  section. 
  2.32     (b) The insurer must offer to meet with the insured, at a 
  2.33  location convenient to the insured, to: 
  2.34     (1) review the terms of the insured's existing policy; 
  2.35     (2) offer to upgrade the insured's coverage, at the 
  2.36  insured's option, without a new medical examination, new medical 
  3.1   underwriting, or new preexisting condition limitation, to any 
  3.2   policy then being offered by the insurer in the insured's state 
  3.3   of residence; 
  3.4      (3) provide the insured with a detailed written explanation 
  3.5   of the difference between the insured's existing policy and 
  3.6   policies then being offered by the insurer, including 
  3.7   differences in premium rates, and of any advantages and 
  3.8   disadvantages to the insured that would be involved in accepting 
  3.9   the offer to upgrade to the new policy. 
  3.10     (c) The insurer may tell the insured that state law 
  3.11  requires the insurer to offer to meet with the insured for 
  3.12  purposes of the review, but the insurer must not state or imply 
  3.13  that state law requires the insured to: 
  3.14     (1) agree to meet for the review; 
  3.15     (2) agree to upgrade to a new policy; or 
  3.16     (3) disclose to the insurer financial or health information 
  3.17  regarding the insured. 
  3.18     (d) The insurer must inform the insured that the insured 
  3.19  may arrange to have a relative, friend, or advisor present at 
  3.20  the meeting. 
  3.21     (e) If the insurer knows or learns that a court has 
  3.22  appointed a guardian or conservator of the person or estate of 
  3.23  the insured, the insurer must include the guardian or 
  3.24  conservator in the policy review process. 
  3.25     (f) Any new coverage sold to the insured as a result of 
  3.26  this section is subject to section 72A.20, subdivision 34, and, 
  3.27  with respect to insurance producers, to section 60K.46. 
  3.28     (g) The insurer need not comply with this section if the 
  3.29  insured is, at the time of the required review, receiving 
  3.30  long-term care. 
  3.31     (h) If the insured declines a personal meeting for purposes 
  3.32  of this section, the insurer must offer to mail to the insured 
  3.33  written materials to accomplish the purposes of paragraph (b), 
  3.34  and must offer to speak with the insured by telephone after the 
  3.35  insured has received the written materials.  The insurer must 
  3.36  not conduct a review by telephone prior to receipt of the 
  4.1   written materials by the insured. 
  4.2      (i) This section applies regardless of whether the insured 
  4.3   lives in this state at the time of the required review, but the 
  4.4   insurer need not offer a personal meeting at a place convenient 
  4.5   to the insured, if the place would be in a state or country in 
  4.6   which the insurer does not then do business. 
  4.7      Sec. 4.  Minnesota Statutes 2002, section 62S.05, is 
  4.8   amended by adding a subdivision to read: 
  4.9      Subd. 4.  [GUARANTEED ISSUE TO PERSONS WITH CHRONIC 
  4.10  ILLNESSES.] Insurers offering long-term care policies in this 
  4.11  state must offer coverage to applicants who have a preexisting 
  4.12  condition and are not receiving long-term care.  The coverage 
  4.13  may impose a waiting period for benefits related to the 
  4.14  preexisting condition not to exceed the maximum waiting period 
  4.15  permitted by law.  The premium charged must not be more than two 
  4.16  times the premium that would be charged to the person if the 
  4.17  person did not have the preexisting condition. 
  4.18     Sec. 5.  [62S.301] [FIVE-YEAR REVIEW REQUIRED.] 
  4.19     (a) An insurer that issues an individual long-term care 
  4.20  policy in this state must, either directly or through an 
  4.21  insurance producer, contact the insured no later than five years 
  4.22  after issuance of the policy, and every five years after that, 
  4.23  for the purpose of a review of the suitability of the policy for 
  4.24  the insured at the time of the review, as described in this 
  4.25  section. 
  4.26     (b) The insurer must offer to meet with the insured, at a 
  4.27  location convenient to the insured, to: 
  4.28     (1) review the terms of the insured's existing policy; 
  4.29     (2) offer to upgrade the insured's coverage, at the 
  4.30  insured's option, without a new medical examination, new medical 
  4.31  underwriting, or new preexisting condition limitation, to any 
  4.32  policy then being offered by the insurer in the insured's state 
  4.33  of residence; 
  4.34     (3) provide the insured with a detailed written explanation 
  4.35  of the difference between the insured's existing policy and 
  4.36  policies then being offered by the insurer, including 
  5.1   differences in premium rates, and of any advantages and 
  5.2   disadvantages to the insured that would be involved in accepting 
  5.3   the offer to upgrade to the new policy. 
  5.4      (c) The insurer may tell the insured that state law 
  5.5   requires the insurer to offer to meet with the insured for 
  5.6   purposes of the review, but the insurer must not state or imply 
  5.7   that state law requires the insured to: 
  5.8      (1) agree to meet for the review; 
  5.9      (2) agree to upgrade to a new policy; or 
  5.10     (3) disclose to the insurer financial or health information 
  5.11  regarding the insured. 
  5.12     (d) The insurer must inform the insured that the insured 
  5.13  may arrange to have a relative, friend, or advisor present at 
  5.14  the meeting. 
  5.15     (e) If the insurer knows or learns that a court has 
  5.16  appointed a guardian or conservator of the person or estate of 
  5.17  the insured, the insurer must include the guardian or 
  5.18  conservator in the policy review process. 
  5.19     (f) Any new coverage sold to the insured as a result of 
  5.20  this section is subject to section 72A.20, subdivision 34, and, 
  5.21  with respect to insurance producers, to section 60K.46. 
  5.22     (g) The insurer need not comply with this section if the 
  5.23  insured is, at the time of the required review, receiving 
  5.24  long-term care. 
  5.25     (h) If the insured declines a personal meeting for purposes 
  5.26  of this section, the insurer must offer to mail to the insured 
  5.27  written materials to accomplish the purposes of paragraph (b), 
  5.28  and must offer to speak with the insured by telephone after the 
  5.29  insured has received the written materials.  The insurer must 
  5.30  not conduct a review by telephone prior to receipt of the 
  5.31  written materials by the insured. 
  5.32     (i) This section applies regardless of whether the insured 
  5.33  lives in this state at the time of the required review, but the 
  5.34  insurer need not offer a personal meeting at a place convenient 
  5.35  to the insured, if the place would be in a state or country in 
  5.36  which the insurer does not then do business. 
  6.1      Sec. 6.  [REPORTS; POTENTIAL SAVINGS TO STATE FROM CERTAIN 
  6.2   LONG-TERM CARE INSURANCE PURCHASE INCENTIVES.] 
  6.3      Subdivision 1.  [LONG-TERM CARE INSURANCE 
  6.4   PARTNERSHIPS.] The commissioner of human services, in 
  6.5   consultation with the commissioner of commerce, shall report to 
  6.6   the legislature on the feasibility of Minnesota adopting a 
  6.7   long-term care insurance partnership program similar to those 
  6.8   adopted in other states.  In such a program, the state would 
  6.9   encourage purchase of private long-term care insurance by 
  6.10  permitting the insured to retain assets in excess of those 
  6.11  otherwise permitted for medical assistance eligibility, if the 
  6.12  insured later exhausts the private long-term care insurance 
  6.13  benefits.  The report must include the feasibility of obtaining 
  6.14  any necessary federal waiver.  The report must comply with 
  6.15  Minnesota Statutes, sections 3.195 and 3.197. 
  6.16     Subd. 2.  [USE OF MEDICAL ASSISTANCE FUNDS TO SUBSIDIZE 
  6.17  PURCHASE OF LONG-TERM CARE INSURANCE.] The commissioner of human 
  6.18  services shall report to the legislature on the feasibility of 
  6.19  using state medical assistance funds to subsidize the purchase 
  6.20  of private long-term care insurance by individuals who would be 
  6.21  unlikely to purchase it without a subsidy, in order to generate 
  6.22  long-term savings of medical assistance expenditures.  The 
  6.23  report must comply with Minnesota Statutes, sections 3.195 and 
  6.24  3.197. 
  6.25     Sec. 7.  [EFFECTIVE DATE.] 
  6.26     Section 1 is effective beginning with the 2004 plan year.  
  6.27  Sections 2 to 5 are effective January 1, 2004, and apply to 
  6.28  policies issued or renewed on or after that date.  Section 6 is 
  6.29  effective July 1, 2003.