1.1                          A bill for an act 
  1.2             relating to insurance; health and accident; regulating 
  1.3             certain dependent coverage; amending Minnesota 
  1.4             Statutes 2002, sections 62A.042; 62C.14, subdivision 
  1.5             14. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 62A.042, is 
  1.8   amended to read: 
  1.9      62A.042 [FAMILY COVERAGE; COVERAGE OF NEWBORN INFANTS.] 
  1.10     Subdivision 1.  [INDIVIDUAL FAMILY POLICIES.] (a) No policy 
  1.11  of individual accident and sickness insurance which provides for 
  1.12  insurance for more than one person under section 62A.03, 
  1.13  subdivision 1, clause (3), and no individual health maintenance 
  1.14  contract which provides for coverage for more than one person 
  1.15  under chapter 62D, shall be renewed to insure or cover any 
  1.16  person in this state or be delivered or issued for delivery to 
  1.17  any person in this state unless the policy or contract includes 
  1.18  as insured or covered members of the family any newborn infants 
  1.19  immediately from the moment of birth and thereafter which 
  1.20  insurance or contract shall provide coverage for illness, 
  1.21  injury, congenital malformation, or premature birth.  For 
  1.22  purposes of this paragraph, "newborn infants" includes 
  1.23  grandchildren who are financially dependent upon a covered 
  1.24  grandparent and who reside with that covered grandparent 
  1.25  continuously from birth.  No policy or contract covered by this 
  2.1   section may require notification to a health carrier as a 
  2.2   condition for this dependent coverage.  However, if the policy 
  2.3   or contract mandates an additional premium for each dependent, 
  2.4   the health carrier shall be entitled to all premiums that would 
  2.5   have been collected had the health carrier been aware of the 
  2.6   additional dependent.  The health carrier may withhold payment 
  2.7   of any health benefits for the new dependent until it has been 
  2.8   compensated with the applicable premium which would have been 
  2.9   owed if the health carrier had been informed of the additional 
  2.10  dependent immediately. 
  2.11     (b) The coverage under paragraph (a) includes benefits for 
  2.12  inpatient or outpatient expenses arising from medical and dental 
  2.13  treatment up to age 18 the limiting age for coverage of the 
  2.14  dependent, including orthodontic and oral surgery treatment, 
  2.15  involved in the management of birth defects known as cleft lip 
  2.16  and cleft palate.  Benefits for individuals age 19 up to the 
  2.17  limiting age for coverage of the dependent are limited to 
  2.18  inpatient or outpatient expenses arising from medical and dental 
  2.19  treatment that was scheduled or initiated prior to the dependent 
  2.20  turning age 19.  If orthodontic services are eligible for 
  2.21  coverage under a dental insurance plan and another policy or 
  2.22  contract, the dental plan shall be primary and the other policy 
  2.23  or contract shall be secondary in regard to the coverage 
  2.24  required under paragraph (a).  Payment for dental or orthodontic 
  2.25  treatment not related to the management of the congenital 
  2.26  condition of cleft lip and cleft palate shall not be covered 
  2.27  under this provision.  
  2.28     Subd. 2.  [GROUP POLICIES.] (a) No group accident and 
  2.29  sickness insurance policy and no group health maintenance 
  2.30  contract which provide for coverage of family members or other 
  2.31  dependents of an employee or other member of the covered group 
  2.32  shall be renewed to cover members of a group located in this 
  2.33  state or delivered or issued for delivery to any person in this 
  2.34  state unless the policy or contract includes as insured or 
  2.35  covered family members or dependents any newborn infants 
  2.36  immediately from the moment of birth and thereafter which 
  3.1   insurance or contract shall provide coverage for illness, 
  3.2   injury, congenital malformation, or premature birth.  For 
  3.3   purposes of this paragraph, "newborn infants" includes 
  3.4   grandchildren who are financially dependent upon a covered 
  3.5   grandparent and who reside with that covered grandparent 
  3.6   continuously from birth.  No policy or contract covered by this 
  3.7   section may require notification to a health carrier as a 
  3.8   condition for this dependent coverage.  However, if the policy 
  3.9   or contract mandates an additional premium for each dependent, 
  3.10  the health carrier shall be entitled to all premiums that would 
  3.11  have been collected had the health carrier been aware of the 
  3.12  additional dependent.  The health carrier may reduce the health 
  3.13  benefits owed to the insured, certificate holder, member, or 
  3.14  subscriber by the amount of past due premiums applicable to the 
  3.15  additional dependent. 
  3.16     (b) The coverage under paragraph (a) includes benefits for 
  3.17  inpatient or outpatient expenses arising from medical and dental 
  3.18  treatment up to age 18 the limiting age for coverage of the 
  3.19  dependent, including orthodontic and oral surgery treatment, 
  3.20  involved in the management of birth defects known as cleft lip 
  3.21  and cleft palate.  Benefits for individuals age 19 up to the 
  3.22  limiting age for coverage of the dependent are limited to 
  3.23  inpatient or outpatient expenses arising from medical and dental 
  3.24  treatment that was scheduled or initiated prior to the dependent 
  3.25  turning age 19.  If orthodontic services are eligible for 
  3.26  coverage under a dental insurance plan and another policy or 
  3.27  contract, the dental plan shall be primary and the other policy 
  3.28  or contract shall be secondary in regard to the coverage 
  3.29  required under paragraph (a).  Payment for dental or orthodontic 
  3.30  treatment not related to the management of the congenital 
  3.31  condition of cleft lip and cleft palate shall not be covered 
  3.32  under this provision. 
  3.33     Sec. 2.  Minnesota Statutes 2002, section 62C.14, 
  3.34  subdivision 14, is amended to read: 
  3.35     Subd. 14.  [NEWBORN INFANT COVERAGE.] No subscriber's 
  3.36  individual contract or any group contract which provides for 
  4.1   coverage of family members or other dependents of a subscriber 
  4.2   or of an employee or other group member of a group subscriber, 
  4.3   shall be renewed, delivered, or issued for delivery in this 
  4.4   state unless such contract includes as covered family members or 
  4.5   dependents any newborn infants immediately from the moment of 
  4.6   birth and thereafter which insurance shall provide coverage for 
  4.7   illness, injury, congenital malformation or premature 
  4.8   birth.  The coverage described in this subdivision includes 
  4.9   coverage of cleft lip and cleft palate to the same extent 
  4.10  provided in section 62A.042, subdivisions 1, paragraph (b); and 
  4.11  2, paragraph (b).  For purposes of this paragraph, "newborn 
  4.12  infants" includes grandchildren who are financially dependent 
  4.13  upon a covered grandparent and who reside with that covered 
  4.14  grandparent continuously from birth.  No policy, contract, or 
  4.15  agreement covered by this section may require notification to a 
  4.16  health carrier as a condition for this dependent coverage.  
  4.17  However, if the policy, contract, or agreement mandates an 
  4.18  additional premium for each dependent, the health carrier shall 
  4.19  be entitled to all premiums that would have been collected had 
  4.20  the health carrier been aware of the additional dependent.  The 
  4.21  health carrier may withhold payment of any health benefits for 
  4.22  the new dependent until it has been compensated with the 
  4.23  applicable premium which would have been owed if the health 
  4.24  carrier had been informed of the additional dependent 
  4.25  immediately. 
  4.26     Sec. 3.  [EFFECTIVE DATE; APPLICATION.] 
  4.27     Sections 1 and 2 are effective January 1, 2005, and apply 
  4.28  to coverage issued or renewed on or after that date.