SF 1928

1st Engrossment - 83rd Legislature (2003 - 2004)

Posted on 12/15/2009 12:00 a.m.

  1.1                          A bill for an act 
  1.2             relating to commerce; making changes in the board 
  1.3             membership of MCHA; requiring the association to post 
  1.4             notice of the reasons for a change in writing 
  1.5             carriers; amending Minnesota Statutes 2002, section 
  1.6             62E.10, subdivision 2; Minnesota Statutes 2003 
  1.7             Supplement, section 62E.13, subdivision 2. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2002, section 62E.10, 
  1.10  subdivision 2, is amended to read: 
  1.11     Subd. 2.  [BOARD OF DIRECTORS; ORGANIZATION.] The board of 
  1.12  directors of the association shall be made up of nine 11 members 
  1.13  as follows:  five directors selected by contributing members, 
  1.14  subject to approval by the commissioner; four six public 
  1.15  directors selected by the commissioner, at least two of whom 
  1.16  must be plan enrollees and two of whom must be representatives 
  1.17  of employers whose accident and health insurance premiums are 
  1.18  part of the association's assessment base.  At least two of the 
  1.19  public directors shall reside outside of the seven-county 
  1.20  metropolitan area.  Public members may include licensed 
  1.21  insurance agents must include at least one licensed insurance 
  1.22  agent.  In determining voting rights at members' meetings, each 
  1.23  member shall be entitled to vote in person or proxy.  The vote 
  1.24  shall be a weighted vote based upon the member's cost of 
  1.25  self-insurance, accident and health insurance premium, 
  1.26  subscriber contract charges, health maintenance contract 
  2.1   payment, or community integrated service network payment derived 
  2.2   from or on behalf of Minnesota residents in the previous 
  2.3   calendar year, as determined by the commissioner.  In approving 
  2.4   directors of the board, the commissioner shall consider, among 
  2.5   other things, whether all types of members are fairly 
  2.6   represented.  Directors selected by contributing members may be 
  2.7   reimbursed from the money of the association for expenses 
  2.8   incurred by them as directors, but shall not otherwise be 
  2.9   compensated by the association for their services.  The costs of 
  2.10  conducting meetings of the association and its board of 
  2.11  directors shall be borne by members of the association. 
  2.12     Sec. 2.  Minnesota Statutes 2003 Supplement, section 
  2.13  62E.13, subdivision 2, is amended to read: 
  2.14     Subd. 2.  [SELECTION OF WRITING CARRIER.] The association 
  2.15  may select policies and contracts, or parts thereof, submitted 
  2.16  by a member or members of the association, or by the association 
  2.17  or others, to develop specifications for bids from any entity 
  2.18  which wishes to be selected as a writing carrier to administer 
  2.19  the state plan.  The selection of the writing carrier shall be 
  2.20  based upon criteria established by the board of directors of the 
  2.21  association and approved by the commissioner.  The criteria 
  2.22  shall outline specific qualifications that an entity must 
  2.23  satisfy in order to be selected and, at a minimum, shall include 
  2.24  the entity's proven ability to handle large group accident and 
  2.25  health insurance cases, efficient claim paying capacity, and the 
  2.26  estimate of total charges for administering the plan.  The 
  2.27  association may select separate writing carriers for the two 
  2.28  types of qualified plans and the $2,000, $5,000, and $10,000 
  2.29  deductible plans, the qualified Medicare supplement plan, and 
  2.30  the health maintenance organization contract.  The association 
  2.31  shall post on its Web site the reasons for any change in writing 
  2.32  carriers.