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 members as 
  1.13  follows:  five directors selected by contributing members, 
  1.14  subject to approval by the commissioner; four public directors 
  1.15  selected by the commissioner, at least two of whom must be plan 
  1.16  enrollees and two of whom must be representatives of employers 
  1.17  whose accident and health insurance premiums are part of the 
  1.18  association's assessment base.  At least two of the public 
  1.19  directors shall reside outside of the seven-county metropolitan 
  1.20  area.  Public members may include licensed insurance agents must 
  1.21  include at least one licensed insurance agent.  In determining 
  1.22  voting rights at members' meetings, each member shall be 
  1.23  entitled to vote in person or proxy.  The vote shall be a 
  1.24  weighted vote based upon the member's cost of self-insurance, 
  1.25  accident and health insurance premium, subscriber contract 
  1.26  charges, health maintenance contract payment, or community 
  2.1   integrated service network payment derived from or on behalf of 
  2.2   Minnesota residents in the previous calendar year, as determined 
  2.3   by the commissioner.  In approving directors of the board, the 
  2.4   commissioner shall consider, among other things, whether all 
  2.5   types of members are fairly represented.  Directors selected by 
  2.6   contributing members may be reimbursed from the money of the 
  2.7   association for expenses incurred by them as directors, but 
  2.8   shall not otherwise be compensated by the association for their 
  2.9   services.  The costs of conducting meetings of the association 
  2.10  and its board of directors shall be borne by members of the 
  2.11  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.