1.1                          A bill for an act 
  1.2             relating to commerce; regulating Medicare supplement 
  1.3             insurance; conforming state law to the minimum federal 
  1.4             standards; requiring coverage of hearing aids for 
  1.5             certain children; requiring evaluation of certain 
  1.6             mandated health benefit proposals; updating 
  1.7             specifications for petroleum products; amending 
  1.8             Minnesota Statutes 2002, sections 41A.09, subdivision 
  1.9             2a; 62A.31, subdivisions 1f, 1u, by adding a 
  1.10            subdivision; 62A.315; 62A.316; 62E.06, subdivision 1; 
  1.11            62J.52, subdivisions 1, 2; 62L.05, subdivision 4; 
  1.12            239.761; 239.792; 296A.01, subdivisions 2, 7, 8, 14, 
  1.13            19, 20, 22, 23, 24, 25, 26, 28, by adding a 
  1.14            subdivision; proposing coding for new law in Minnesota 
  1.15            Statutes, chapters 62J; 62Q. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17                             ARTICLE 1 
  1.18                    MEDICARE SUPPLEMENT COVERAGE
  1.19     Section 1.  Minnesota Statutes 2002, section 62A.31, 
  1.20  subdivision 1f, is amended to read: 
  1.21     Subd. 1f.  [SUSPENSION BASED ON ENTITLEMENT TO MEDICAL 
  1.22  ASSISTANCE.] (a) The policy or certificate must provide that 
  1.23  benefits and premiums under the policy or certificate shall be 
  1.24  suspended for any period that may be provided by federal 
  1.25  regulation at the request of the policyholder or certificate 
  1.26  holder for the period, not to exceed 24 months, in which the 
  1.27  policyholder or certificate holder has applied for and is 
  1.28  determined to be entitled to medical assistance under title XIX 
  1.29  of the Social Security Act, but only if the policyholder or 
  1.30  certificate holder notifies the issuer of the policy or 
  2.1   certificate within 90 days after the date the individual becomes 
  2.2   entitled to this assistance. 
  2.3      (b) If suspension occurs and if the policyholder or 
  2.4   certificate holder loses entitlement to this medical assistance, 
  2.5   the policy or certificate shall be automatically reinstated, 
  2.6   effective as of the date of termination of this entitlement, if 
  2.7   the policyholder or certificate holder provides notice of loss 
  2.8   of the entitlement within 90 days after the date of the loss and 
  2.9   pays the premium attributable to the period, effective as of the 
  2.10  date of termination of entitlement. 
  2.11     (c) The policy must provide that upon reinstatement (1) 
  2.12  there is no additional waiting period with respect to treatment 
  2.13  of preexisting conditions, (2) coverage is provided which is 
  2.14  substantially equivalent to coverage in effect before the date 
  2.15  of the suspension, and (3) premiums are classified on terms that 
  2.16  are at least as favorable to the policyholder or certificate 
  2.17  holder as the premium classification terms that would have 
  2.18  applied to the policyholder or certificate holder had coverage 
  2.19  not been suspended. 
  2.20     Sec. 2.  Minnesota Statutes 2002, section 62A.31, 
  2.21  subdivision 1u, is amended to read: 
  2.22     Subd. 1u.  [GUARANTEED ISSUE FOR ELIGIBLE PERSONS.] (a)(1) 
  2.23  Eligible persons are those individuals described in paragraph 
  2.24  (b) who apply to enroll under the Medicare supplement policy not 
  2.25  later than 63 days after the date of the termination of 
  2.26  enrollment described in paragraph (b), seek to enroll under the 
  2.27  policy during the period specified in paragraph (c), and who 
  2.28  submit evidence of the date of termination or disenrollment with 
  2.29  the application for a Medicare supplement policy. 
  2.30     (2) With respect to eligible persons, an issuer shall not:  
  2.31  deny or condition the issuance or effectiveness of a Medicare 
  2.32  supplement policy described in paragraph (c) that is offered and 
  2.33  is available for issuance to new enrollees by the issuer; 
  2.34  discriminate in the pricing of such a Medicare supplement policy 
  2.35  because of health status, claims experience, receipt of health 
  2.36  care, medical condition, or age; or impose an exclusion of 
  3.1   benefits based upon a preexisting condition under such a 
  3.2   Medicare supplement policy. 
  3.3      (b) An eligible person is an individual described in any of 
  3.4   the following: 
  3.5      (1) the individual is enrolled under an employee welfare 
  3.6   benefit plan that provides health benefits that supplement the 
  3.7   benefits under Medicare; and the plan terminates, or the plan 
  3.8   ceases to provide all such supplemental health benefits to the 
  3.9   individual; 
  3.10     (2) the individual is enrolled with a Medicare+Choice 
  3.11  organization under a Medicare+Choice plan under Medicare part C, 
  3.12  and any of the following circumstances apply, or the individual 
  3.13  is 65 years of age or older and is enrolled with a Program of 
  3.14  All-Inclusive Care for the Elderly (PACE) provider under section 
  3.15  1894 of the federal Social Security Act, and there are 
  3.16  circumstances similar to those described in this clause that 
  3.17  would permit discontinuance of the individual's enrollment with 
  3.18  the provider if the individual were enrolled in a 
  3.19  Medicare+Choice plan: 
  3.20     (i) the organization's or plan's certification under 
  3.21  Medicare part C has been terminated or the organization has 
  3.22  terminated or otherwise discontinued providing the plan in the 
  3.23  area in which the individual resides; 
  3.24     (ii) the individual is no longer eligible to elect the plan 
  3.25  because of a change in the individual's place of residence or 
  3.26  other change in circumstances specified by the secretary, but 
  3.27  not including termination of the individual's enrollment on the 
  3.28  basis described in section 1851(g)(3)(B) of the federal Social 
  3.29  Security Act, United States Code, title 42, section 
  3.30  1395w-21(g)(3)(b) (where the individual has not paid premiums on 
  3.31  a timely basis or has engaged in disruptive behavior as 
  3.32  specified in standards under section 1856 of the federal Social 
  3.33  Security Act, United States Code, title 42, section 1395w-26), 
  3.34  or the plan is terminated for all individuals within a residence 
  3.35  area; 
  3.36     (iii) the individual demonstrates, in accordance with 
  4.1   guidelines established by the Secretary, that: 
  4.2      (A) the organization offering the plan substantially 
  4.3   violated a material provision of the organization's contract in 
  4.4   relation to the individual, including the failure to provide an 
  4.5   enrollee on a timely basis medically necessary care for which 
  4.6   benefits are available under the plan or the failure to provide 
  4.7   such covered care in accordance with applicable quality 
  4.8   standards; or 
  4.9      (B) the organization, or agent or other entity acting on 
  4.10  the organization's behalf, materially misrepresented the plan's 
  4.11  provisions in marketing the plan to the individual; or 
  4.12     (iv) the individual meets such other exceptional conditions 
  4.13  as the secretary may provide; 
  4.14     (3)(i) the individual is enrolled with: 
  4.15     (A) an eligible organization under a contract under section 
  4.16  1876 of the federal Social Security Act, United States Code, 
  4.17  title 42, section 1395mm (Medicare risk or cost); 
  4.18     (B) a similar organization operating under demonstration 
  4.19  project authority, effective for periods before April 1, 1999; 
  4.20     (C) an organization under an agreement under section 
  4.21  1833(a)(1)(A) of the federal Social Security Act, United States 
  4.22  Code, title 42, section 1395l(a)(1)(A) (health care prepayment 
  4.23  plan); or 
  4.24     (D) an organization under a Medicare Select policy under 
  4.25  section 62A.318 or the similar law of another state; and 
  4.26     (ii) the enrollment ceases under the same circumstances 
  4.27  that would permit discontinuance of an individual's election of 
  4.28  coverage under clause (2); 
  4.29     (4) the individual is enrolled under a Medicare supplement 
  4.30  policy, and the enrollment ceases because: 
  4.31     (i)(A) of the insolvency of the issuer or bankruptcy of the 
  4.32  nonissuer organization; or 
  4.33     (B) of other involuntary termination of coverage or 
  4.34  enrollment under the policy; 
  4.35     (ii) the issuer of the policy substantially violated a 
  4.36  material provision of the policy; or 
  5.1      (iii) the issuer, or an agent or other entity acting on the 
  5.2   issuer's behalf, materially misrepresented the policy's 
  5.3   provisions in marketing the policy to the individual; 
  5.4      (5)(i) the individual was enrolled under a Medicare 
  5.5   supplement policy and terminates that enrollment and 
  5.6   subsequently enrolls, for the first time, with any 
  5.7   Medicare+Choice organization under a Medicare+Choice plan under 
  5.8   Medicare part C; any eligible organization under a contract 
  5.9   under section 1876 of the federal Social Security Act, United 
  5.10  States Code, title 42, section 1395mm (Medicare risk or cost); 
  5.11  any similar organization operating under demonstration project 
  5.12  authority; an organization under an agreement under section 
  5.13  1833(a)(1)(A) of the federal Social Security Act, United States 
  5.14  Code, title 42, section 1395l(a)(1)(A) (health care prepayment 
  5.15  plan); any PACE provider under section 1894 of the federal 
  5.16  Social Security Act, or a Medicare Select policy under section 
  5.17  62A.318 or the similar law of another state; and 
  5.18     (ii) the subsequent enrollment under paragraph (a) item (i) 
  5.19  is terminated by the enrollee during any period within the first 
  5.20  12 months of such the subsequent enrollment during which the 
  5.21  enrollee is permitted to terminate the subsequent enrollment 
  5.22  under section 1851(e) of the federal Social Security Act; or 
  5.23     (6) the individual, upon first enrolling for benefits under 
  5.24  Medicare part B, enrolls in a Medicare+Choice plan under 
  5.25  Medicare part C, or with a PACE provider under section 1894 of 
  5.26  the federal Social Security Act, and disenrolls from the plan by 
  5.27  not later than 12 months after the effective date of enrollment. 
  5.28     (c)(1) In the case of an individual described in paragraph 
  5.29  (b), clause (1), the guaranteed issue period begins on the date 
  5.30  the individual receives a notice of termination or cessation of 
  5.31  all supplemental health benefits or, if a notice is not 
  5.32  received, notice that a claim has been denied because of a 
  5.33  termination or cessation, and ends 63 days after the date of the 
  5.34  applicable notice. 
  5.35     (2) In the case of an individual described in paragraph 
  5.36  (b), clause (2), (3), (5), or (6), whose enrollment is 
  6.1   terminated involuntarily, the guaranteed issue period begins on 
  6.2   the date that the individual receives a notice of termination 
  6.3   and ends 63 days after the date the applicable coverage is 
  6.4   terminated. 
  6.5      (3) In the case of an individual described in paragraph 
  6.6   (b), clause (4)(i), the guaranteed issue period begins on the 
  6.7   earlier of: (i) the date that the individual receives a notice 
  6.8   of termination, a notice of the issuer's bankruptcy or 
  6.9   insolvency, or other such similar notice if any; and (ii) the 
  6.10  date that the applicable coverage is terminated, and ends on the 
  6.11  date that is 63 days after the date the coverage is terminated. 
  6.12     (4) In the case of an individual described in paragraph 
  6.13  (b), clause (2), (4), (5), or (6), who disenrolls voluntarily, 
  6.14  the guaranteed issue period begins on the date that is 60 days 
  6.15  before the effective date of the disenrollment and ends on the 
  6.16  date that is 63 days after the effective date. 
  6.17     (5) In the case of an individual described in paragraph (b) 
  6.18  but not described in this paragraph, the guaranteed issue period 
  6.19  begins on the effective date of disenrollment and ends on the 
  6.20  date that is 63 days after the effective date. 
  6.21     (d)(1) In the case of an individual described in paragraph 
  6.22  (b), clause (5), or deemed to be so described, pursuant to this 
  6.23  paragraph, whose enrollment with an organization or provider 
  6.24  described in paragraph (b), clause (5)(i), is involuntarily 
  6.25  terminated within the first 12 months of enrollment, and who, 
  6.26  without an intervening enrollment, enrolls with another such 
  6.27  organization or provider, the subsequent enrollment is deemed to 
  6.28  be an initial enrollment described in paragraph (b), clause (5). 
  6.29     (2) In the case of an individual described in paragraph 
  6.30  (b), clause (6), or deemed to be so described, pursuant to this 
  6.31  paragraph, whose enrollment with a plan or in a program 
  6.32  described in paragraph (b), clause (6), is involuntarily 
  6.33  terminated within the first 12 months of enrollment, and who, 
  6.34  without an intervening enrollment, enrolls in another such plan 
  6.35  or program, the subsequent enrollment is deemed to be an initial 
  6.36  enrollment described in paragraph (b), clause (6). 
  7.1      (3) For purposes of paragraph (b), clauses (5) and (6), no 
  7.2   enrollment of an individual with an organization or provider 
  7.3   described in paragraph (b), clause (5)(i), or with a plan or in 
  7.4   a program described in paragraph (b), clause (6), may be deemed 
  7.5   to be an initial enrollment under this paragraph after the 
  7.6   two-year period beginning on the date on which the individual 
  7.7   first enrolled with the organization, provider, plan, or program.
  7.8      (e) The Medicare supplement policy to which eligible 
  7.9   persons are entitled under: 
  7.10     (1) paragraph (b), clauses (1) to (4), is any Medicare 
  7.11  supplement policy that has a benefit package consisting of the 
  7.12  basic Medicare supplement plan described in section 62A.316, 
  7.13  paragraph (a), plus any combination of the three optional riders 
  7.14  described in section 62A.316, paragraph (b), clauses (1) to (3), 
  7.15  offered by any issuer; 
  7.16     (2) paragraph (b), clause (5), is the same Medicare 
  7.17  supplement policy in which the individual was most recently 
  7.18  previously enrolled, if available from the same issuer, or, if 
  7.19  not so available, any policy described in clause (1) offered by 
  7.20  any issuer; 
  7.21     (3) paragraph (b), clause (6), shall include any Medicare 
  7.22  supplement policy offered by any issuer. 
  7.23     (d) (f)(1) At the time of an event described in paragraph 
  7.24  (b), because of which an individual loses coverage or benefits 
  7.25  due to the termination of a contract or agreement, policy, or 
  7.26  plan, the organization that terminates the contract or 
  7.27  agreement, the issuer terminating the policy, or the 
  7.28  administrator of the plan being terminated, respectively, shall 
  7.29  notify the individual of the individual's rights under this 
  7.30  subdivision, and of the obligations of issuers of Medicare 
  7.31  supplement policies under paragraph (a).  The notice must be 
  7.32  communicated contemporaneously with the notification of 
  7.33  termination. 
  7.34     (2) At the time of an event described in paragraph (b), 
  7.35  because of which an individual ceases enrollment under a 
  7.36  contract or agreement, policy, or plan, the organization that 
  8.1   offers the contract or agreement, regardless of the basis for 
  8.2   the cessation of enrollment, the issuer offering the policy, or 
  8.3   the administrator of the plan, respectively, shall notify the 
  8.4   individual of the individual's rights under this subdivision, 
  8.5   and of the obligations of issuers of Medicare supplement 
  8.6   policies under paragraph (a).  The notice must be communicated 
  8.7   within ten working days of the issuer receiving notification of 
  8.8   disenrollment.  
  8.9      (e) (g) Reference in this subdivision to a situation in 
  8.10  which, or to a basis upon which, an individual's coverage has 
  8.11  been terminated does not provide authority under the laws of 
  8.12  this state for the termination in that situation or upon that 
  8.13  basis. 
  8.14     (f) (h) An individual's rights under this subdivision are 
  8.15  in addition to, and do not modify or limit, the individual's 
  8.16  rights under subdivision 1h. 
  8.17     Sec. 3.  Minnesota Statutes 2002, section 62A.31, is 
  8.18  amended by adding a subdivision to read: 
  8.19     Subd. 7.  [MEDICARE PRESCRIPTION DRUG BENEFIT.] If congress 
  8.20  enacts legislation creating a prescription drug benefit in the 
  8.21  Medicare program, nothing in this section or any other section 
  8.22  shall prohibit an issuer of a Medicare supplement policy from 
  8.23  offering this prescription drug benefit consistent with the 
  8.24  applicable federal law or regulations.  If an issuer offers the 
  8.25  federal benefit, such an offer shall be deemed to meet the 
  8.26  issuer's mandatory offer obligations under this section and may, 
  8.27  at the discretion of the issuer, constitute replacement coverage 
  8.28  as defined in subdivision 1i for any existing policy containing 
  8.29  a prescription drug benefit. 
  8.30     Sec. 4.  Minnesota Statutes 2002, section 62A.315, is 
  8.31  amended to read: 
  8.32     62A.315 [EXTENDED BASIC MEDICARE SUPPLEMENT PLAN; 
  8.33  COVERAGE.] 
  8.34     The extended basic Medicare supplement plan must have a 
  8.35  level of coverage so that it will be certified as a qualified 
  8.36  plan pursuant to section 62E.07, and will provide: 
  9.1      (1) coverage for all of the Medicare part A inpatient 
  9.2   hospital deductible and coinsurance amounts, and 100 percent of 
  9.3   all Medicare part A eligible expenses for hospitalization not 
  9.4   covered by Medicare; 
  9.5      (2) coverage for the daily copayment amount of Medicare 
  9.6   part A eligible expenses for the calendar year incurred for 
  9.7   skilled nursing facility care; 
  9.8      (3) coverage for the copayment coinsurance amount or in the 
  9.9   case of hospital outpatient department services paid under a 
  9.10  prospective payment system, the co-payment amount, of Medicare 
  9.11  eligible expenses under Medicare part B regardless of hospital 
  9.12  confinement, and the Medicare part B deductible amount; 
  9.13     (4) 80 percent of the usual and customary hospital and 
  9.14  medical expenses and supplies described in section 62E.06, 
  9.15  subdivision 1, not to exceed any charge limitation established 
  9.16  by the Medicare program or state law, the usual and customary 
  9.17  hospital and medical expenses and supplies, described in section 
  9.18  62E.06, subdivision 1, while in a foreign country, and 
  9.19  prescription drug expenses, not covered by Medicare; 
  9.20     (5) coverage for the reasonable cost of the first three 
  9.21  pints of blood, or equivalent quantities of packed red blood 
  9.22  cells as defined under federal regulations under Medicare parts 
  9.23  A and B, unless replaced in accordance with federal regulations; 
  9.24     (6) 100 percent of the cost of immunizations and routine 
  9.25  screening procedures for cancer, including mammograms and pap 
  9.26  smears; 
  9.27     (7) preventive medical care benefit:  coverage for the 
  9.28  following preventive health services: 
  9.29     (i) an annual clinical preventive medical history and 
  9.30  physical examination that may include tests and services from 
  9.31  clause (ii) and patient education to address preventive health 
  9.32  care measures; 
  9.33     (ii) any one or a combination of the following preventive 
  9.34  screening tests or preventive services, the frequency of which 
  9.35  is considered medically appropriate: 
  9.36     (A) fecal occult blood test and/or digital rectal 
 10.1   examination; 
 10.2      (B) dipstick urinalysis for hematuria, bacteriuria, and 
 10.3   proteinuria; 
 10.4      (C) pure tone (air only) hearing screening test 
 10.5   administered or ordered by a physician; 
 10.6      (D) serum cholesterol screening every five years; 
 10.7      (E) thyroid function test; 
 10.8      (F) diabetes screening; 
 10.9      (iii) any other tests or preventive measures determined 
 10.10  appropriate by the attending physician.  
 10.11     Reimbursement shall be for the actual charges up to 100 
 10.12  percent of the Medicare-approved amount for each service as if 
 10.13  Medicare were to cover the service as identified in American 
 10.14  Medical Association current procedural terminology (AMA CPT) 
 10.15  codes to a maximum of $120 annually under this benefit.  This 
 10.16  benefit shall not include payment for any procedure covered by 
 10.17  Medicare; 
 10.18     (8) at-home recovery benefit:  coverage for services to 
 10.19  provide short-term at-home assistance with activities of daily 
 10.20  living for those recovering from an illness, injury, or surgery: 
 10.21     (i) for purposes of this benefit, the following definitions 
 10.22  shall apply: 
 10.23     (A) "activities of daily living" include, but are not 
 10.24  limited to, bathing, dressing, personal hygiene, transferring, 
 10.25  eating, ambulating, assistance with drugs that are normally 
 10.26  self-administered, and changing bandages or other dressings; 
 10.27     (B) "care provider" means a duly qualified or licensed home 
 10.28  health aide/homemaker, personal care aide, or nurse provided 
 10.29  through a licensed home health care agency or referred by a 
 10.30  licensed referral agency or licensed nurses registry; 
 10.31     (C) "home" means a place used by the insured as a place of 
 10.32  residence, provided that the place would qualify as a residence 
 10.33  for home health care services covered by Medicare.  A hospital 
 10.34  or skilled nursing facility shall not be considered the 
 10.35  insured's place of residence; 
 10.36     (D) "at-home recovery visit" means the period of a visit 
 11.1   required to provide at-home recovery care, without limit on the 
 11.2   duration of the visit, except each consecutive four hours in a 
 11.3   24-hour period of services provided by a care provider is one 
 11.4   visit; 
 11.5      (ii) coverage requirements and limitations: 
 11.6      (A) at-home recovery services provided must be primarily 
 11.7   services that assist in activities of daily living; 
 11.8      (B) the insured's attending physician must certify that the 
 11.9   specific type and frequency of at-home recovery services are 
 11.10  necessary because of a condition for which a home care plan of 
 11.11  treatment was approved by Medicare; 
 11.12     (C) coverage is limited to: 
 11.13     (I) no more than the number and type of at-home recovery 
 11.14  visits certified as medically necessary by the insured's 
 11.15  attending physician.  The total number of at-home recovery 
 11.16  visits shall not exceed the number of Medicare-approved home 
 11.17  health care visits under a Medicare-approved home care plan of 
 11.18  treatment; 
 11.19     (II) the actual charges for each visit up to a maximum 
 11.20  reimbursement of $40 per visit; 
 11.21     (III) $1,600 per calendar year; 
 11.22     (IV) seven visits in any one week; 
 11.23     (V) care furnished on a visiting basis in the insured's 
 11.24  home; 
 11.25     (VI) services provided by a care provider as defined in 
 11.26  this section; 
 11.27     (VII) at-home recovery visits while the insured is covered 
 11.28  under the policy or certificate and not otherwise excluded; 
 11.29     (VIII) at-home recovery visits received during the period 
 11.30  the insured is receiving Medicare-approved home care services or 
 11.31  no more than eight weeks after the service date of the last 
 11.32  Medicare-approved home health care visit; 
 11.33     (iii) coverage is excluded for: 
 11.34     (A) home care visits paid for by Medicare or other 
 11.35  government programs; and 
 11.36     (B) care provided by family members, unpaid volunteers, or 
 12.1   providers who are not care providers. 
 12.2      Sec. 5.  Minnesota Statutes 2002, section 62A.316, is 
 12.3   amended to read: 
 12.4      62A.316 [BASIC MEDICARE SUPPLEMENT PLAN; COVERAGE.] 
 12.5      (a) The basic Medicare supplement plan must have a level of 
 12.6   coverage that will provide: 
 12.7      (1) coverage for all of the Medicare part A inpatient 
 12.8   hospital coinsurance amounts, and 100 percent of all Medicare 
 12.9   part A eligible expenses for hospitalization not covered by 
 12.10  Medicare, after satisfying the Medicare part A deductible; 
 12.11     (2) coverage for the daily copayment amount of Medicare 
 12.12  part A eligible expenses for the calendar year incurred for 
 12.13  skilled nursing facility care; 
 12.14     (3) coverage for the copayment coinsurance amount, or in 
 12.15  the case of outpatient department services paid under a 
 12.16  prospective payment system, the co-payment amount, of Medicare 
 12.17  eligible expenses under Medicare part B regardless of hospital 
 12.18  confinement, subject to the Medicare part B deductible amount; 
 12.19     (4) 80 percent of the hospital and medical expenses and 
 12.20  supplies incurred during travel outside the United States as a 
 12.21  result of a medical emergency; 
 12.22     (5) coverage for the reasonable cost of the first three 
 12.23  pints of blood, or equivalent quantities of packed red blood 
 12.24  cells as defined under federal regulations under Medicare parts 
 12.25  A and B, unless replaced in accordance with federal regulations; 
 12.26     (6) 100 percent of the cost of immunizations and routine 
 12.27  screening procedures for cancer screening including mammograms 
 12.28  and pap smears; and 
 12.29     (7) 80 percent of coverage for all physician prescribed 
 12.30  medically appropriate and necessary equipment and supplies used 
 12.31  in the management and treatment of diabetes.  Coverage must 
 12.32  include persons with gestational, type I, or type II diabetes. 
 12.33     (b) Only the following optional benefit riders may be added 
 12.34  to this plan: 
 12.35     (1) coverage for all of the Medicare part A inpatient 
 12.36  hospital deductible amount; 
 13.1      (2) a minimum of 80 percent of eligible medical expenses 
 13.2   and supplies not covered by Medicare part B, not to exceed any 
 13.3   charge limitation established by the Medicare program or state 
 13.4   law; 
 13.5      (3) coverage for all of the Medicare part B annual 
 13.6   deductible; 
 13.7      (4) coverage for at least 50 percent, or the equivalent of 
 13.8   50 percent, of usual and customary prescription drug expenses; 
 13.9      (5) coverage for the following preventive health services: 
 13.10     (i) an annual clinical preventive medical history and 
 13.11  physical examination that may include tests and services from 
 13.12  clause (ii) and patient education to address preventive health 
 13.13  care measures; 
 13.14     (ii) any one or a combination of the following preventive 
 13.15  screening tests or preventive services, the frequency of which 
 13.16  is considered medically appropriate: 
 13.17     (A) fecal occult blood test and/or digital rectal 
 13.18  examination; 
 13.19     (B) dipstick urinalysis for hematuria, bacteriuria, and 
 13.20  proteinuria; 
 13.21     (C) pure tone (air only) hearing screening test, 
 13.22  administered or ordered by a physician; 
 13.23     (D) serum cholesterol screening every five years; 
 13.24     (E) thyroid function test; 
 13.25     (F) diabetes screening; 
 13.26     (iii) any other tests or preventive measures determined 
 13.27  appropriate by the attending physician. 
 13.28     Reimbursement shall be for the actual charges up to 100 
 13.29  percent of the Medicare-approved amount for each service, as if 
 13.30  Medicare were to cover the service as identified in American 
 13.31  Medical Association current procedural terminology (AMA CPT) 
 13.32  codes, to a maximum of $120 annually under this benefit.  This 
 13.33  benefit shall not include payment for a procedure covered by 
 13.34  Medicare; 
 13.35     (6) coverage for services to provide short-term at-home 
 13.36  assistance with activities of daily living for those recovering 
 14.1   from an illness, injury, or surgery: 
 14.2      (i) For purposes of this benefit, the following definitions 
 14.3   apply: 
 14.4      (A) "activities of daily living" include, but are not 
 14.5   limited to, bathing, dressing, personal hygiene, transferring, 
 14.6   eating, ambulating, assistance with drugs that are normally 
 14.7   self-administered, and changing bandages or other dressings; 
 14.8      (B) "care provider" means a duly qualified or licensed home 
 14.9   health aide/homemaker, personal care aid, or nurse provided 
 14.10  through a licensed home health care agency or referred by a 
 14.11  licensed referral agency or licensed nurses registry; 
 14.12     (C) "home" means a place used by the insured as a place of 
 14.13  residence, provided that the place would qualify as a residence 
 14.14  for home health care services covered by Medicare.  A hospital 
 14.15  or skilled nursing facility shall not be considered the 
 14.16  insured's place of residence; 
 14.17     (D) "at-home recovery visit" means the period of a visit 
 14.18  required to provide at-home recovery care, without limit on the 
 14.19  duration of the visit, except each consecutive four hours in a 
 14.20  24-hour period of services provided by a care provider is one 
 14.21  visit; 
 14.22     (ii) Coverage requirements and limitations: 
 14.23     (A) at-home recovery services provided must be primarily 
 14.24  services that assist in activities of daily living; 
 14.25     (B) the insured's attending physician must certify that the 
 14.26  specific type and frequency of at-home recovery services are 
 14.27  necessary because of a condition for which a home care plan of 
 14.28  treatment was approved by Medicare; 
 14.29     (C) coverage is limited to: 
 14.30     (I) no more than the number and type of at-home recovery 
 14.31  visits certified as necessary by the insured's attending 
 14.32  physician.  The total number of at-home recovery visits shall 
 14.33  not exceed the number of Medicare-approved home care visits 
 14.34  under a Medicare-approved home care plan of treatment; 
 14.35     (II) the actual charges for each visit up to a maximum 
 14.36  reimbursement of $40 per visit; 
 15.1      (III) $1,600 per calendar year; 
 15.2      (IV) seven visits in any one week; 
 15.3      (V) care furnished on a visiting basis in the insured's 
 15.4   home; 
 15.5      (VI) services provided by a care provider as defined in 
 15.6   this section; 
 15.7      (VII) at-home recovery visits while the insured is covered 
 15.8   under the policy or certificate and not otherwise excluded; 
 15.9      (VIII) at-home recovery visits received during the period 
 15.10  the insured is receiving Medicare-approved home care services or 
 15.11  no more than eight weeks after the service date of the last 
 15.12  Medicare-approved home health care visit; 
 15.13     (iii) Coverage is excluded for: 
 15.14     (A) home care visits paid for by Medicare or other 
 15.15  government programs; and 
 15.16     (B) care provided by family members, unpaid volunteers, or 
 15.17  providers who are not care providers; 
 15.18     (7) coverage for at least 50 percent, or the equivalent of 
 15.19  50 percent, of usual and customary prescription drug expenses to 
 15.20  a maximum of $1,200 paid by the issuer annually under this 
 15.21  benefit.  An issuer of Medicare supplement insurance policies 
 15.22  that elects to offer this benefit rider shall also make 
 15.23  available coverage that contains the rider specified in clause 
 15.24  (4). 
 15.25                             ARTICLE 2 
 15.26                       OTHER HEALTH COVERAGE 
 15.27     Section 1.  Minnesota Statutes 2002, section 62E.06, 
 15.28  subdivision 1, is amended to read: 
 15.29     Subdivision 1.  [NUMBER THREE PLAN.] A plan of health 
 15.30  coverage shall be certified as a number three qualified plan if 
 15.31  it otherwise meets the requirements established by chapters 62A, 
 15.32  62C, and 62Q, and the other laws of this state, whether or not 
 15.33  the policy is issued in Minnesota, and meets or exceeds the 
 15.34  following minimum standards: 
 15.35     (a) The minimum benefits for a covered individual shall, 
 15.36  subject to the other provisions of this subdivision, be equal to 
 16.1   at least 80 percent of the cost of covered services in excess of 
 16.2   an annual deductible which does not exceed $150 per person.  The 
 16.3   coverage shall include a limitation of $3,000 per person on 
 16.4   total annual out-of-pocket expenses for services covered under 
 16.5   this subdivision.  The coverage shall be subject to a maximum 
 16.6   lifetime benefit of not less than $1,000,000. 
 16.7      The $3,000 limitation on total annual out-of-pocket 
 16.8   expenses and the $1,000,000 maximum lifetime benefit shall not 
 16.9   be subject to change or substitution by use of an actuarially 
 16.10  equivalent benefit. 
 16.11     (b) Covered expenses shall be the usual and customary 
 16.12  charges for the following services and articles when prescribed 
 16.13  by a physician: 
 16.14     (1) hospital services; 
 16.15     (2) professional services for the diagnosis or treatment of 
 16.16  injuries, illnesses, or conditions, other than dental, which are 
 16.17  rendered by a physician or at the physician's direction; 
 16.18     (3) drugs requiring a physician's prescription; 
 16.19     (4) services of a nursing home for not more than 120 days 
 16.20  in a year if the services would qualify as reimbursable services 
 16.21  under Medicare; 
 16.22     (5) services of a home health agency if the services would 
 16.23  qualify as reimbursable services under Medicare; 
 16.24     (6) use of radium or other radioactive materials; 
 16.25     (7) oxygen; 
 16.26     (8) anesthetics; 
 16.27     (9) prostheses other than dental but including scalp hair 
 16.28  prostheses worn for hair loss suffered as a result of alopecia 
 16.29  areata; 
 16.30     (10) rental or purchase, as appropriate, of durable medical 
 16.31  equipment other than eyeglasses and hearing aids, unless 
 16.32  coverage is required under section 62Q.675; 
 16.33     (11) diagnostic x-rays and laboratory tests; 
 16.34     (12) oral surgery for partially or completely unerupted 
 16.35  impacted teeth, a tooth root without the extraction of the 
 16.36  entire tooth, or the gums and tissues of the mouth when not 
 17.1   performed in connection with the extraction or repair of teeth; 
 17.2      (13) services of a physical therapist; 
 17.3      (14) transportation provided by licensed ambulance service 
 17.4   to the nearest facility qualified to treat the condition; or a 
 17.5   reasonable mileage rate for transportation to a kidney dialysis 
 17.6   center for treatment; and 
 17.7      (15) services of an occupational therapist. 
 17.8      (c) Covered expenses for the services and articles 
 17.9   specified in this subdivision do not include the following: 
 17.10     (1) any charge for care for injury or disease either (i) 
 17.11  arising out of an injury in the course of employment and subject 
 17.12  to a workers' compensation or similar law, (ii) for which 
 17.13  benefits are payable without regard to fault under coverage 
 17.14  statutorily required to be contained in any motor vehicle, or 
 17.15  other liability insurance policy or equivalent self-insurance, 
 17.16  or (iii) for which benefits are payable under another policy of 
 17.17  accident and health insurance, Medicare, or any other 
 17.18  governmental program except as otherwise provided by section 
 17.19  62A.04, subdivision 3, clause (4); 
 17.20     (2) any charge for treatment for cosmetic purposes other 
 17.21  than for reconstructive surgery when such service is incidental 
 17.22  to or follows surgery resulting from injury, sickness, or other 
 17.23  diseases of the involved part or when such service is performed 
 17.24  on a covered dependent child because of congenital disease or 
 17.25  anomaly which has resulted in a functional defect as determined 
 17.26  by the attending physician; 
 17.27     (3) care which is primarily for custodial or domiciliary 
 17.28  purposes which would not qualify as eligible services under 
 17.29  Medicare; 
 17.30     (4) any charge for confinement in a private room to the 
 17.31  extent it is in excess of the institution's charge for its most 
 17.32  common semiprivate room, unless a private room is prescribed as 
 17.33  medically necessary by a physician, provided, however, that if 
 17.34  the institution does not have semiprivate rooms, its most common 
 17.35  semiprivate room charge shall be considered to be 90 percent of 
 17.36  its lowest private room charge; 
 18.1      (5) that part of any charge for services or articles 
 18.2   rendered or prescribed by a physician, dentist, or other health 
 18.3   care personnel which exceeds the prevailing charge in the 
 18.4   locality where the service is provided; and 
 18.5      (6) any charge for services or articles the provision of 
 18.6   which is not within the scope of authorized practice of the 
 18.7   institution or individual rendering the services or articles. 
 18.8      (d) The minimum benefits for a qualified plan shall 
 18.9   include, in addition to those benefits specified in clauses (a) 
 18.10  and (e), benefits for well baby care, effective July 1, 1980, 
 18.11  subject to applicable deductibles, coinsurance provisions, and 
 18.12  maximum lifetime benefit limitations. 
 18.13     (e) Effective July 1, 1979, the minimum benefits of a 
 18.14  qualified plan shall include, in addition to those benefits 
 18.15  specified in clause (a), a second opinion from a physician on 
 18.16  all surgical procedures expected to cost a total of $500 or more 
 18.17  in physician, laboratory, and hospital fees, provided that the 
 18.18  coverage need not include the repetition of any diagnostic tests.
 18.19     (f) Effective August 1, 1985, the minimum benefits of a 
 18.20  qualified plan must include, in addition to the benefits 
 18.21  specified in clauses (a), (d), and (e), coverage for special 
 18.22  dietary treatment for phenylketonuria when recommended by a 
 18.23  physician. 
 18.24     (g) Outpatient mental health coverage is subject to section 
 18.25  62A.152, subdivision 2.  
 18.26     Sec. 2.  [62J.26] [EVALUATION OF PROPOSED HEALTH COVERAGE 
 18.27  MANDATES.] 
 18.28     Subdivision 1.  [DEFINITIONS.] For purposes of this 
 18.29  section, the following terms have the meanings given unless the 
 18.30  context otherwise requires:  
 18.31     (1) "commissioner" means the commissioner of commerce; 
 18.32     (2) "health plan" means a health plan as defined in section 
 18.33  62A.011, subdivision 3, but includes coverage listed in clauses 
 18.34  (7) and (10), of that definition; 
 18.35     (3) "mandated health benefit proposal" means a proposal 
 18.36  that would statutorily require a health plan to do the following:
 19.1      (i) provide coverage or increase the amount of coverage for 
 19.2   the treatment of a particular disease, condition, or other 
 19.3   health care need; 
 19.4      (ii) provide coverage or increase the amount of coverage of 
 19.5   a particular type of health care treatment or service or of 
 19.6   equipment, supplies, or drugs used in connection with a health 
 19.7   care treatment or service; or 
 19.8      (iii) provide coverage for care delivered by a specific 
 19.9   type of provider. 
 19.10     "Mandated health benefit proposal" does not include health 
 19.11  benefit proposals amending the scope of practice of a licensed 
 19.12  health care professional. 
 19.13     Subd. 2.  [EVALUATION PROCESS AND CONTENT.] (a) The 
 19.14  commissioner, in consultation with the commissioners of health 
 19.15  and employee relations, must evaluate mandated health benefit 
 19.16  proposals as provided under subdivision 3.  
 19.17     (b) The purpose of the evaluation is to provide the 
 19.18  legislature with a complete and timely analysis of all 
 19.19  ramifications of any mandated health benefit proposal.  The 
 19.20  evaluation must include, in addition to other relevant 
 19.21  information, the following: 
 19.22     (1) scientific and medical information on the proposed 
 19.23  health benefit, on the potential for harm or benefit to the 
 19.24  patient, and on the comparative benefit or harm from alternative 
 19.25  forms of treatment; 
 19.26     (2) public health, economic, and fiscal impacts of the 
 19.27  proposed mandate on persons receiving health services in 
 19.28  Minnesota, on the relative cost-effectiveness of the benefit, 
 19.29  and on the health care system in general; 
 19.30     (3) the extent to which the service is generally utilized 
 19.31  by a significant portion of the population; 
 19.32     (4) the extent to which insurance coverage for the proposed 
 19.33  mandated benefit is already generally available; 
 19.34     (5) the extent to which the mandated coverage will increase 
 19.35  or decrease the cost of the service; and 
 19.36     (6) the commissioner may consider actuarial analysis done 
 20.1   by health insurers in determining the cost of the proposed 
 20.2   mandated benefit. 
 20.3      (c) The commissioner must summarize the nature and quality 
 20.4   of available information on these issues, and, if possible, must 
 20.5   provide preliminary information to the public.  The commissioner 
 20.6   may conduct research on these issues or may determine that 
 20.7   existing research is sufficient to meet the informational needs 
 20.8   of the legislature.  The commissioner may seek the assistance 
 20.9   and advice of researchers, community leaders, or other persons 
 20.10  or organizations with relevant expertise.  
 20.11     Subd. 3.  [REQUESTS FOR EVALUATION.] (a) Whenever a 
 20.12  legislative measure containing a mandated health benefit 
 20.13  proposal is introduced as a bill or offered as an amendment to a 
 20.14  bill, or is likely to be introduced as a bill or offered as an 
 20.15  amendment, a chair of any standing legislative committee that 
 20.16  has jurisdiction over the subject matter of the proposal may 
 20.17  request that the commissioner complete an evaluation of the 
 20.18  proposal under this section, to inform any committee of floor 
 20.19  action by either house of the legislature.  
 20.20     (b) The commissioner must conduct an evaluation described 
 20.21  in subdivision 2 of each mandated health benefit proposal for 
 20.22  which an evaluation is requested under paragraph (a), unless the 
 20.23  commissioner determines under paragraph (c) or subdivision 4 
 20.24  that priorities and resources do not permit its evaluation. 
 20.25     (c) If requests for evaluation of multiple proposals are 
 20.26  received, the commissioner must consult with the chairs of the 
 20.27  standing legislative committees having jurisdiction over the 
 20.28  subject matter of the mandated health benefit proposals to 
 20.29  prioritize the requests and establish a reporting date for each 
 20.30  proposal to be evaluated.  The commissioner is not required to 
 20.31  direct an unreasonable quantity of the commissioner's resources 
 20.32  to these evaluations.  
 20.33     Subd. 4.  [SOURCES OF FUNDING.] (a) The commissioner need 
 20.34  not use any funds for purposes of this section other than as 
 20.35  provided in this subdivision or as specified in an appropriation.
 20.36     (b) The commissioner may seek and accept funding from 
 21.1   sources other than the state to pay for evaluations under this 
 21.2   section, to supplement or replace state appropriations.  Any 
 21.3   money received under this paragraph must be deposited in the 
 21.4   state treasury, credited to a separate account for this purpose 
 21.5   in the special revenue fund, and is appropriated to the 
 21.6   commissioner for purposes of this section. 
 21.7      (c) If a request for an evaluation under this section has 
 21.8   been made, the commissioner may use for purposes of the 
 21.9   evaluation: 
 21.10     (1) any funds appropriated to the commissioner specifically 
 21.11  for purposes of this section; or 
 21.12     (2) funds available under paragraph (b), if use of the 
 21.13  funds for evaluation of that mandated health benefit proposal is 
 21.14  consistent with any restrictions imposed by the source of the 
 21.15  funds. 
 21.16     (d) The commissioner must ensure that the source of the 
 21.17  funding has no influence on the process or outcome of the 
 21.18  evaluation. 
 21.19     Subd. 5.  [REPORT TO LEGISLATURE.] The commissioner must 
 21.20  submit a written report on the evaluation to the legislature no 
 21.21  later than 180 days after the request.  The report must be 
 21.22  submitted in compliance with sections 3.195 and 3.197. 
 21.23     Sec. 3.  Minnesota Statutes 2002, section 62J.52, 
 21.24  subdivision 1, is amended to read: 
 21.25     Subdivision 1.  [UNIFORM BILLING FORM HCFA 1450.] (a) On 
 21.26  and after January 1, 1996, all institutional inpatient hospital 
 21.27  services, ancillary services, institutionally owned or operated 
 21.28  outpatient services rendered by providers in Minnesota, and 
 21.29  institutional or noninstitutional home health services that are 
 21.30  not being billed using an equivalent electronic billing format, 
 21.31  must be billed using the uniform billing form HCFA 1450, except 
 21.32  as provided in subdivision 5. 
 21.33     (b) The instructions and definitions for the use of the 
 21.34  uniform billing form HCFA 1450 shall be in accordance with the 
 21.35  uniform billing form manual specified by the commissioner.  In 
 21.36  promulgating these instructions, the commissioner may utilize 
 22.1   the manual developed by the National Uniform Billing Committee, 
 22.2   as adopted and finalized by the Minnesota uniform billing 
 22.3   committee.  
 22.4      (c) Services to be billed using the uniform billing form 
 22.5   HCFA 1450 include:  institutional inpatient hospital services 
 22.6   and distinct units in the hospital such as psychiatric unit 
 22.7   services, physical therapy unit services, swing bed (SNF)  
 22.8   services, inpatient state psychiatric hospital services, 
 22.9   inpatient skilled nursing facility services, home health 
 22.10  services (Medicare part A), and hospice services; ancillary 
 22.11  services, where benefits are exhausted or patient has no 
 22.12  Medicare part A, from hospitals, state psychiatric hospitals, 
 22.13  skilled nursing facilities, and home health (Medicare part B); 
 22.14  institutional owned or operated outpatient services such as 
 22.15  waivered services, hospital outpatient services, including 
 22.16  ambulatory surgical center services, hospital referred 
 22.17  laboratory services, hospital-based ambulance services, and 
 22.18  other hospital outpatient services, skilled nursing facilities, 
 22.19  home health, including infusion therapy, freestanding renal 
 22.20  dialysis centers, comprehensive outpatient rehabilitation 
 22.21  facilities (CORF), outpatient rehabilitation facilities (ORF), 
 22.22  rural health clinics, and community mental health centers; home 
 22.23  health services such as home health intravenous therapy 
 22.24  providers, waivered services, personal care attendants, and 
 22.25  hospice; and any other health care provider certified by the 
 22.26  Medicare program to use this form. 
 22.27     (d) On and after January 1, 1996, a mother and newborn 
 22.28  child must be billed separately, and must not be combined on one 
 22.29  claim form. 
 22.30     Sec. 4.  Minnesota Statutes 2002, section 62J.52, 
 22.31  subdivision 2, is amended to read: 
 22.32     Subd. 2.  [UNIFORM BILLING FORM HCFA 1500.] (a) On and 
 22.33  after January 1, 1996, all noninstitutional health care services 
 22.34  rendered by providers in Minnesota except dental or pharmacy 
 22.35  providers, that are not currently being billed using an 
 22.36  equivalent electronic billing format, must be billed using the 
 23.1   health insurance claim form HCFA 1500, except as provided in 
 23.2   subdivision 5. 
 23.3      (b) The instructions and definitions for the use of the 
 23.4   uniform billing form HCFA 1500 shall be in accordance with the 
 23.5   manual developed by the administrative uniformity committee 
 23.6   entitled standards for the use of the HCFA 1500 form, dated 
 23.7   February 1994, as further defined by the commissioner. 
 23.8      (c) Services to be billed using the uniform billing form 
 23.9   HCFA 1500 include physician services and supplies, durable 
 23.10  medical equipment, noninstitutional ambulance services, 
 23.11  independent ancillary services including occupational therapy, 
 23.12  physical therapy, speech therapy and audiology, home infusion 
 23.13  therapy, podiatry services, optometry services, mental health 
 23.14  licensed professional services, substance abuse licensed 
 23.15  professional services, nursing practitioner professional 
 23.16  services, certified registered nurse anesthetists, 
 23.17  chiropractors, physician assistants, laboratories, medical 
 23.18  suppliers, and other health care providers such as day activity 
 23.19  centers and freestanding ambulatory surgical centers. 
 23.20     Sec. 5.  Minnesota Statutes 2002, section 62L.05, 
 23.21  subdivision 4, is amended to read: 
 23.22     Subd. 4.  [BENEFITS.] The medical services and supplies 
 23.23  listed in this subdivision are the benefits that must be covered 
 23.24  by the small employer plans described in subdivisions 2 and 3.  
 23.25  Benefits under this subdivision may be provided through the 
 23.26  managed care procedures practiced by health carriers:  
 23.27     (1) inpatient and outpatient hospital services, excluding 
 23.28  services provided for the diagnosis, care, or treatment of 
 23.29  chemical dependency or a mental illness or condition, other than 
 23.30  those conditions specified in clauses (10), (11), and (12).  The 
 23.31  health care services required to be covered under this clause 
 23.32  must also be covered if rendered in a nonhospital environment, 
 23.33  on the same basis as coverage provided for those same treatments 
 23.34  or services if rendered in a hospital, provided, however, that 
 23.35  this sentence must not be interpreted as expanding the types or 
 23.36  extent of services covered; 
 24.1      (2) physician, chiropractor, and nurse practitioner 
 24.2   services for the diagnosis or treatment of illnesses, injuries, 
 24.3   or conditions; 
 24.4      (3) diagnostic x-rays and laboratory tests; 
 24.5      (4) ground transportation provided by a licensed ambulance 
 24.6   service to the nearest facility qualified to treat the 
 24.7   condition, or as otherwise required by the health carrier; 
 24.8      (5) services of a home health agency if the services 
 24.9   qualify as reimbursable services under Medicare; 
 24.10     (6) services of a private duty registered nurse if 
 24.11  medically necessary, as determined by the health carrier; 
 24.12     (7) the rental or purchase, as appropriate, of durable 
 24.13  medical equipment, other than eyeglasses and hearing aids, 
 24.14  unless coverage is required under section 62Q.675; 
 24.15     (8) child health supervision services up to age 18, as 
 24.16  defined in section 62A.047; 
 24.17     (9) maternity and prenatal care services, as defined in 
 24.18  sections 62A.041 and 62A.047; 
 24.19     (10) inpatient hospital and outpatient services for the 
 24.20  diagnosis and treatment of certain mental illnesses or 
 24.21  conditions, as defined by the International Classification of 
 24.22  Diseases-Clinical Modification (ICD-9-CM), seventh edition 
 24.23  (1990) and as classified as ICD-9 codes 295 to 299; 
 24.24     (11) ten hours per year of outpatient mental health 
 24.25  diagnosis or treatment for illnesses or conditions not described 
 24.26  in clause (10); 
 24.27     (12) 60 hours per year of outpatient treatment of chemical 
 24.28  dependency; and 
 24.29     (13) 50 percent of eligible charges for prescription drugs, 
 24.30  up to a separate annual maximum out-of-pocket expense of $1,000 
 24.31  per individual for prescription drugs, and 100 percent of 
 24.32  eligible charges thereafter.  
 24.33     Sec. 6.  [62Q.675] [HEARING AIDS; PERSONS 18 OR YOUNGER.] 
 24.34     A health plan must cover hearing aids for individuals 18 
 24.35  years of age or younger for hearing loss due to functional 
 24.36  congenital malformation of the ears that is not correctable by 
 25.1   other covered procedures.  Coverage required under this section 
 25.2   is limited to one hearing aid in each ear every three years.  No 
 25.3   special deductible, coinsurance, co-payment, or other limitation 
 25.4   on the coverage under this section that is not generally 
 25.5   applicable to other coverages under the plan may be imposed. 
 25.6      Sec. 7.  [EFFECTIVE DATE.] 
 25.7      Sections 1, 5, and 6 are effective August 1, 2003, and 
 25.8   apply to policies or certificates issued on or after that date.  
 25.9   Section 2 is effective January 1, 2004. 
 25.10                             ARTICLE 3
 25.11                     MOTOR FUEL SPECIFICATIONS
 25.12     Section 1.  Minnesota Statutes 2002, section 41A.09, 
 25.13  subdivision 2a, is amended to read: 
 25.14     Subd. 2a.  [DEFINITIONS.] For the purposes of this section, 
 25.15  the terms defined in this subdivision have the meanings given 
 25.16  them. 
 25.17     (a) "Ethanol" means fermentation ethyl alcohol derived from 
 25.18  agricultural products, including potatoes, cereal, grains, 
 25.19  cheese whey, and sugar beets; forest products; or other 
 25.20  renewable resources, including residue and waste generated from 
 25.21  the production, processing, and marketing of agricultural 
 25.22  products, forest products, and other renewable resources, that: 
 25.23     (1) meets all of the specifications in ASTM specification D 
 25.24  4806-88 D4806-01; and 
 25.25     (2) is denatured as specified in Code of Federal 
 25.26  Regulations, title 27, parts 20 and 21. 
 25.27     (b) "Wet alcohol" means agriculturally derived fermentation 
 25.28  ethyl alcohol having a purity of at least 50 percent but less 
 25.29  than 99 percent. 
 25.30     (c) "Anhydrous alcohol" means fermentation ethyl alcohol 
 25.31  derived from agricultural products as described in paragraph 
 25.32  (a), but that does not meet ASTM specifications or is not 
 25.33  denatured and is shipped in bond for further processing. 
 25.34     (d) "Ethanol plant" means a plant at which ethanol, 
 25.35  anhydrous alcohol, or wet alcohol is produced. 
 25.36     Sec. 2.  Minnesota Statutes 2002, section 239.761, is 
 26.1   amended to read: 
 26.2      239.761 [PETROLEUM PRODUCT SPECIFICATIONS.] 
 26.3      Subdivision 1.  [APPLICABILITY.] A person responsible for 
 26.4   the product must meet the specifications in this section.  The 
 26.5   specifications apply to petroleum products processed, held, 
 26.6   stored, imported, transferred, distributed, offered for 
 26.7   distribution, offered for sale or use, or sold in Minnesota. 
 26.8      Subd. 2.  [COORDINATION WITH DEPARTMENTS OF REVENUE AND 
 26.9   AGRICULTURE.] The petroleum product specifications in this 
 26.10  section are intended to match the definitions and specifications 
 26.11  in sections 41A.09 and 296A.01.  Petroleum products named in 
 26.12  this section are defined in section 296A.01. 
 26.13     Subd. 3.  [GASOLINE.] (a) Gasoline that is not blended with 
 26.14  ethanol must not be contaminated with water or other impurities 
 26.15  and must comply with ASTM specification D 4814-96 D4814-01.  
 26.16  Gasoline that is not blended with ethanol must also comply with 
 26.17  the volatility requirements in Code of Federal Regulations, 
 26.18  title 40, part 80.  
 26.19     (b) After gasoline is sold, transferred, or otherwise 
 26.20  removed from a refinery or terminal, a person responsible for 
 26.21  the product: 
 26.22     (1) may blend the gasoline with agriculturally derived 
 26.23  ethanol as provided in subdivision 4; 
 26.24     (2) shall not blend the gasoline with any oxygenate other 
 26.25  than denatured, agriculturally derived ethanol; 
 26.26     (3) shall not blend the gasoline with other petroleum 
 26.27  products that are not gasoline or denatured, agriculturally 
 26.28  derived ethanol; 
 26.29     (4) shall not blend the gasoline with products commonly and 
 26.30  commercially known as casinghead gasoline, absorption gasoline, 
 26.31  condensation gasoline, drip gasoline, or natural gasoline; and 
 26.32     (5) may blend the gasoline with a detergent additive, an 
 26.33  antiknock additive, or an additive designed to replace 
 26.34  tetra-ethyl lead, that is registered by the EPA. 
 26.35     Subd. 4.  [GASOLINE BLENDED WITH ETHANOL.] (a) Gasoline may 
 26.36  be blended with up to ten percent, by volume, agriculturally 
 27.1   derived, denatured ethanol that complies with the requirements 
 27.2   of subdivision 5.  
 27.3      (b) A gasoline-ethanol blend must: 
 27.4      (1) comply with the volatility requirements in Code of 
 27.5   Federal Regulations, title 40, part 80; 
 27.6      (2) comply with ASTM specification D 4814-96 D4814-01, or 
 27.7   the gasoline base stock from which a gasoline-ethanol blend was 
 27.8   produced must comply with ASTM specification D 4814-96 D4814-01; 
 27.9   and 
 27.10     (3) not be blended with casinghead gasoline, absorption 
 27.11  gasoline, condensation gasoline, drip gasoline, or natural 
 27.12  gasoline after the gasoline-ethanol blend has been sold, 
 27.13  transferred, or otherwise removed from a refinery or terminal. 
 27.14     Subd. 5.  [DENATURED ETHANOL.] Denatured ethanol that is to 
 27.15  be blended with gasoline must be agriculturally derived and must 
 27.16  comply with ASTM specification D 4806-95b D4806-01.  This 
 27.17  includes the requirement that ethanol may be denatured only as 
 27.18  specified in Code of Federal Regulations, title 27, parts 20 and 
 27.19  21. 
 27.20     Subd. 6.  [GASOLINE BLENDED WITH NONETHANOL OXYGENATE.] (a) 
 27.21  A person responsible for the product shall comply with the 
 27.22  following requirements: 
 27.23     (1) after July 1, 2000, gasoline containing in excess of 
 27.24  one-third of one percent, in total, of the nonethanol oxygenates 
 27.25  listed in paragraph (b) may must not be sold or offered for sale 
 27.26  at any time in this state; and 
 27.27     (2) after July 1, 2005, gasoline containing any of the 
 27.28  nonethanol oxygenates listed in paragraph (b) may must not be 
 27.29  sold or offered for sale in this state. 
 27.30     (b) The oxygenates prohibited under paragraph (a) are: 
 27.31     (1) methyl tertiary butyl ether, as defined in section 
 27.32  296A.01, subdivision 34; 
 27.33     (2) ethyl tertiary butyl ether, as defined in section 
 27.34  296A.01, subdivision 18; or 
 27.35     (3) tertiary amyl methyl ether. 
 27.36     (c) Gasoline that is blended with an a nonethanol oxygenate 
 28.1   , other than denatured ethanol, must comply with ASTM 
 28.2   specification D 4814-96 D4814-01.  Nonethanol oxygenates, other 
 28.3   than denatured ethanol, must not be blended into gasoline after 
 28.4   the gasoline has been sold, transferred, or otherwise removed 
 28.5   from a refinery or terminal. 
 28.6      Subd. 7.  [HEATING FUEL OIL.] Heating fuel oil must comply 
 28.7   with ASTM specification D 396-96 D396-01. 
 28.8      Subd. 8.  [DIESEL FUEL OIL.] Diesel fuel oil must comply 
 28.9   with ASTM specification D 975-96a D975-01a. 
 28.10     Subd. 9.  [KEROSENE.] Kerosene must comply with ASTM 
 28.11  specification D 3699-96a D3699-01. 
 28.12     Subd. 10.  [AVIATION GASOLINE.] Aviation gasoline must 
 28.13  comply with ASTM specification D 910-96 D910-00. 
 28.14     Subd. 11.  [AVIATION TURBINE FUEL, JET FUEL.] Aviation 
 28.15  turbine fuel and jet fuel must comply with ASTM specification D 
 28.16  1655-96c D1655-01. 
 28.17     Subd. 12.  [GAS TURBINE FUEL OIL.] Fuel oil for use in 
 28.18  nonaviation gas turbine engines must comply with ASTM 
 28.19  specification D 2880-96a D2880-00. 
 28.20     Subd. 13.  [E85.] A blend of ethanol and gasoline, 
 28.21  containing at least 60 percent ethanol and not more than 85 
 28.22  percent ethanol, produced for use as a motor fuel in alternative 
 28.23  fuel vehicles as defined in section 296A.01, subdivision 5, must 
 28.24  comply with ASTM specification D 5798-96 D5798-99. 
 28.25     Subd. 14.  [M85.] A blend of methanol and gasoline, 
 28.26  containing at least 85 percent methanol, produced for use as a 
 28.27  motor fuel in alternative fuel vehicles as defined in section 
 28.28  296A.01, subdivision 5, must comply with ASTM specification 
 28.29  D5797-96. 
 28.30     Sec. 3.  Minnesota Statutes 2002, section 239.792, is 
 28.31  amended to read: 
 28.32     239.792 [GASOLINE OCTANE.] 
 28.33     Subdivision 1.  [DISCLOSURE.] A manufacturer, hauler, 
 28.34  blender, agent, jobber, consignment agent, importer, or 
 28.35  distributor who sells, delivers, or distributes gasoline or 
 28.36  gasoline-oxygenate blends, shall provide, at the time of 
 29.1   delivery, a bill of lading or shipping manifest to the person 
 29.2   who receives the gasoline.  The bill or manifest must state the 
 29.3   minimum octane of the gasoline delivered.  The stated octane 
 29.4   number must be the average of the "motor method" octane number 
 29.5   and the "research method" octane number as determined by the 
 29.6   test methods in ASTM specification D 4814-96 D4814-01, or by a 
 29.7   test method adopted by department rule. 
 29.8      Subd. 2.  [DISPENSER LABELING.] A person responsible for 
 29.9   the product shall clearly, conspicuously, and permanently label 
 29.10  each gasoline dispenser that is used to sell gasoline or 
 29.11  gasoline-oxygenate blends at retail or to dispense gasoline or 
 29.12  gasoline-oxygenate blends into the fuel supply tanks of motor 
 29.13  vehicles, with the minimum octane of the gasoline dispensed.  
 29.14  The label must meet the following requirements: 
 29.15     (a) The octane number displayed on the label must represent 
 29.16  the average of the "motor method" octane number and the 
 29.17  "research method" octane number as determined by the test 
 29.18  methods in ASTM specification D 4814-96 D4814-01, or by a test 
 29.19  method adopted by department rule. 
 29.20     (b) The label must be at least 2-1/2 inches high and three 
 29.21  inches wide, with a yellow background, black border, and black 
 29.22  figures and letters. 
 29.23     (c) The number representing the octane of the gasoline must 
 29.24  be at least one inch high. 
 29.25     (d) The label must include the words "minimum octane" and 
 29.26  the term "(R+M)/2" or "(RON+MON)/2." 
 29.27     Sec. 4.  Minnesota Statutes 2002, section 296A.01, 
 29.28  subdivision 2, is amended to read: 
 29.29     Subd. 2.  [AGRICULTURAL ALCOHOL GASOLINE.] "Agricultural 
 29.30  alcohol gasoline" means a gasoline-ethanol blend of up to ten 
 29.31  percent agriculturally derived fermentation ethanol derived from 
 29.32  agricultural products, such as potatoes, cereal, grains, cheese 
 29.33  whey, sugar beets, forest products, or other renewable 
 29.34  resources, that: 
 29.35     (1) meets the specifications in ASTM specification D 
 29.36  4806-95b D4806-01; and 
 30.1      (2) is denatured as specified in Code of Federal 
 30.2   Regulations, title 27, parts 20 and 21. 
 30.3      Sec. 5.  Minnesota Statutes 2002, section 296A.01, 
 30.4   subdivision 7, is amended to read:  
 30.5      Subd. 7.  [AVIATION GASOLINE.] "Aviation gasoline" means 
 30.6   any gasoline that is capable of use for the purpose of producing 
 30.7   or generating power for propelling internal combustion engine 
 30.8   aircraft, that meets the specifications in ASTM specification D 
 30.9   910-96 D910-00, and that either: 
 30.10     (1) is invoiced and billed by a producer, manufacturer, 
 30.11  refiner, or blender to a distributor or dealer, by a distributor 
 30.12  to a dealer or consumer, or by a dealer to consumer, as 
 30.13  "aviation gasoline"; or 
 30.14     (2) whether or not invoiced and billed as provided in 
 30.15  clause (1), is received, sold, stored, or withdrawn from storage 
 30.16  by any person, to be used for the purpose of producing or 
 30.17  generating power for propelling internal combustion engine 
 30.18  aircraft. 
 30.19     Sec. 6.  Minnesota Statutes 2002, section 296A.01, 
 30.20  subdivision 8, is amended to read: 
 30.21     Subd. 8.  [AVIATION TURBINE FUEL AND JET FUEL.] "Aviation 
 30.22  turbine fuel" and "jet fuel" mean blends of hydrocarbons derived 
 30.23  from crude petroleum, natural gasoline, and synthetic 
 30.24  hydrocarbons, intended for use in aviation turbine engines, and 
 30.25  that meet the specifications in ASTM specification D 
 30.26  1655-96c D1655-01. 
 30.27     Sec. 7.  Minnesota Statutes 2002, section 296A.01, 
 30.28  subdivision 14, is amended to read: 
 30.29     Subd. 14.  [DIESEL FUEL OIL.] "Diesel fuel oil" means a 
 30.30  petroleum distillate or blend of petroleum distillate and 
 30.31  residual fuels, intended for use as a motor fuel in internal 
 30.32  combustion diesel engines, that meets the specifications in ASTM 
 30.33  specification D 975-96a D975-01A.  Diesel fuel includes number 1 
 30.34  and number 2 fuel oils.  K-1 kerosene is not diesel fuel unless 
 30.35  it is blended with diesel fuel for use in motor vehicles.  
 30.36     Sec. 8.  Minnesota Statutes 2002, section 296A.01, 
 31.1   subdivision 19, is amended to read: 
 31.2      Subd. 19.  [E85.] "E85" means a petroleum product that is a 
 31.3   blend of agriculturally derived denatured ethanol and gasoline 
 31.4   or natural gasoline that typically contains 85 percent ethanol 
 31.5   by volume, but at a minimum must contain 60 percent ethanol by 
 31.6   volume.  For the purposes of this chapter, the energy content of 
 31.7   E85 will be considered to be 82,000 BTUs per gallon.  E85 
 31.8   produced for use as a motor fuel in alternative fuel vehicles as 
 31.9   defined in subdivision 5 must comply with ASTM specification D 
 31.10  5798-96 D5798-99. 
 31.11     Sec. 9.  Minnesota Statutes 2002, section 296A.01, 
 31.12  subdivision 20, is amended to read:  
 31.13     Subd. 20.  [ETHANOL, DENATURED.] "Ethanol, denatured" means 
 31.14  ethanol that is to be blended with gasoline, has been 
 31.15  agriculturally derived, and complies with ASTM specification D 
 31.16  4806-95b D4806-01.  This includes the requirement that ethanol 
 31.17  may be denatured only as specified in Code of Federal 
 31.18  Regulations, title 27, parts 20 and 21. 
 31.19     Sec. 10.  Minnesota Statutes 2002, section 296A.01, 
 31.20  subdivision 22, is amended to read:  
 31.21     Subd. 22.  [GAS TURBINE FUEL OIL.] "Gas turbine fuel oil" 
 31.22  means fuel that contains mixtures of hydrocarbon oils free of 
 31.23  inorganic acid and excessive amounts of solid or fibrous foreign 
 31.24  matter, intended for use in nonaviation gas turbine engines, and 
 31.25  that meets the specifications in ASTM specification D 2880-96a 
 31.26  D2880-00. 
 31.27     Sec. 11.  Minnesota Statutes 2002, section 296A.01, 
 31.28  subdivision 23, is amended to read: 
 31.29     Subd. 23.  [GASOLINE.] (a) "Gasoline" means: 
 31.30     (1) all products commonly or commercially known or sold as 
 31.31  gasoline regardless of their classification or uses, except 
 31.32  casinghead gasoline, absorption gasoline, condensation gasoline, 
 31.33  drip gasoline, or natural gasoline that under the requirements 
 31.34  of section 239.761, subdivision 3, must not be blended with 
 31.35  gasoline that has been sold, transferred, or otherwise removed 
 31.36  from a refinery or terminal; and 
 32.1      (2) any liquid prepared, advertised, offered for sale or 
 32.2   sold for use as, or commonly and commercially used as, a fuel in 
 32.3   spark-ignition, internal combustion engines, and that when 
 32.4   tested by the weights and measures division meets the 
 32.5   specifications in ASTM specification D 4814-96 D4814-01. 
 32.6      (b) Gasoline that is not blended with ethanol must not be 
 32.7   contaminated with water or other impurities and must comply with 
 32.8   both ASTM specification D 4814-96 D4814-01 and the volatility 
 32.9   requirements in Code of Federal Regulations, title 40, part 80. 
 32.10     (c) After gasoline is sold, transferred, or otherwise 
 32.11  removed from a refinery or terminal, a person responsible for 
 32.12  the product: 
 32.13     (1) may blend the gasoline with agriculturally derived 
 32.14  ethanol, as provided in subdivision 24; 
 32.15     (2) must not blend the gasoline with any oxygenate other 
 32.16  than denatured, agriculturally derived ethanol; 
 32.17     (3) must not blend the gasoline with other petroleum 
 32.18  products that are not gasoline or denatured, agriculturally 
 32.19  derived ethanol; 
 32.20     (4) must not blend the gasoline with products commonly and 
 32.21  commercially known as casinghead gasoline, absorption gasoline, 
 32.22  condensation gasoline, drip gasoline, or natural gasoline; and 
 32.23     (5) may blend the gasoline with a detergent additive, an 
 32.24  antiknock additive, or an additive designed to replace 
 32.25  tetra-ethyl lead, that is registered by the EPA. 
 32.26     Sec. 12.  Minnesota Statutes 2002, section 296A.01, 
 32.27  subdivision 24, is amended to read:  
 32.28     Subd. 24.  [GASOLINE BLENDED WITH NONETHANOL OXYGENATE.] 
 32.29  "Gasoline blended with nonethanol oxygenate" means gasoline 
 32.30  blended with ETBE, MTBE, or other alcohol or ether, except 
 32.31  denatured ethanol, that is approved as an oxygenate by the EPA, 
 32.32  and that complies with ASTM specification D 4814-96 D4814-01.  
 32.33  Oxygenates, other than denatured ethanol, must not be blended 
 32.34  into gasoline after the gasoline has been sold, transferred, or 
 32.35  otherwise removed from a refinery or terminal. 
 32.36     Sec. 13.  Minnesota Statutes 2002, section 296A.01, 
 33.1   subdivision 25, is amended to read:  
 33.2      Subd. 25.  [GASOLINE BLENDED WITH ETHANOL.] "Gasoline 
 33.3   blended with ethanol" means gasoline blended with up to ten 
 33.4   percent, by volume, agriculturally derived, denatured ethanol.  
 33.5   The blend must comply with the volatility requirements in Code 
 33.6   of Federal Regulations, title 40, part 80.  The blend must also 
 33.7   comply with ASTM specification D 4814-96 D4814-01, or the 
 33.8   gasoline base stock from which a gasoline-ethanol blend was 
 33.9   produced must comply with ASTM specification D 4814-96 D4814-01; 
 33.10  and the gasoline-ethanol blend must not be blended with 
 33.11  casinghead gasoline, absorption gasoline, condensation gasoline, 
 33.12  drip gasoline, or natural gasoline after the gasoline-ethanol 
 33.13  blend has been sold, transferred, or otherwise removed from a 
 33.14  refinery or terminal.  The blend need not comply with ASTM 
 33.15  specification D 4814-96 D4814-01 if it is subjected to a 
 33.16  standard distillation test.  For a distillation test, a 
 33.17  gasoline-ethanol blend is not required to comply with the 
 33.18  temperature specification at the 50 percent liquid recovery 
 33.19  point, if the gasoline from which the gasoline-ethanol blend was 
 33.20  produced complies with all of the distillation specifications. 
 33.21     Sec. 14.  Minnesota Statutes 2002, section 296A.01, 
 33.22  subdivision 26, is amended to read: 
 33.23     Subd. 26.  [HEATING FUEL OIL.] "Heating fuel oil" means a 
 33.24  petroleum distillate, blend of petroleum distillates and 
 33.25  residuals, or petroleum residual heating fuel that meets the 
 33.26  specifications in ASTM specification D 396-96 D396-01. 
 33.27     Sec. 15.  Minnesota Statutes 2002, section 296A.01, 
 33.28  subdivision 28, is amended to read: 
 33.29     Subd. 28.  [KEROSENE.] "Kerosene" means a refined petroleum 
 33.30  distillate consisting of a homogeneous mixture of hydrocarbons 
 33.31  essentially free of water, inorganic acidic and basic compounds, 
 33.32  and excessive amounts of particulate contaminants and that meets 
 33.33  the specifications in ASTM specification D 3699-96a D3699-01. 
 33.34     Sec. 16.  Minnesota Statutes 2002, section 296A.01, is 
 33.35  amended by adding a subdivision to read:  
 33.36     Subd. 38a.  [NONETHANOL OXYGENATE.] "Nonethanol oxygenate" 
 34.1   means ETBE or MTBE, as defined in this section, or other alcohol 
 34.2   or ether, except denatured ethanol, that is approved as an 
 34.3   oxygenate by the EPA.