1.1 	A bill for an act
1.2 	relating to insurance; permitting flexible benefits
1.3 	plans for small employer group health coverage;
1.4 	proposing coding for new law in Minnesota Statutes,
1.5 	chapter 62L.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. [62L.056] SMALL EMPLOYER FLEXIBLE BENEFITS
1.8 	PLANS.
1.9 	(a) Notwithstanding any provision of this chapter, chapter
1.10 	363A, or any other law to the contrary, a health carrier may
1.11 	offer, sell, issue, and renew a health benefit plan that is a
1.12 	flexible benefits plan under this section to a small employer if
1.13 	the following requirements are satisfied:
1.14 	(1) the health benefit plan must be offered in compliance
1.15 	with this chapter, except as otherwise permitted in this
1.16 	section;
1.17 	(2) the health benefit plan to be offered must be designed
1.18 	to enable employers and covered persons to better manage costs
1.19 	and coverage options through the use of co-pays, deductibles,
1.20 	and other cost-sharing arrangements;
1.21 	(3) the health benefit plan must be issued and administered
1.22 	in compliance with sections 62E.141; 62L.03, subdivision 6; and
1.23 	62L.12, subdivisions 3 and 4, relating to prohibitions against
1.24 	enrolling in the Minnesota Comprehensive Health Association
1.25 	persons eligible for employer group coverage;
2.1 	(4) loss-ratio requirements do not apply to a health
2.2 	benefit plan issued under this section;
2.3 	(5) the health benefit plan may modify or exclude any or
2.4 	all coverages of benefits that would otherwise be required by
2.5 	law, except for maternity benefits and other benefits required
2.6 	under federal law;
2.7 	(6) each health benefit plan must be approved by the
2.8 	commissioner of commerce, but the commissioner may not
2.9 	disapprove a plan on the grounds of a modification or exclusion
2.10 	permitted under clause (5); and 
2.11 	(7) prior to sale of the health benefit plan, the small
2.12 	employer must be given a written list of the coverages otherwise
2.13 	required by law that are modified or excluded in the health
2.14 	benefit plan.  The list must include a description of each
2.15 	coverage in the list and indicate whether the coverage is
2.16 	modified or excluded.  If a coverage is modified, the list must
2.17 	describe the modification.  The list may, but need not, also
2.18 	list any or all coverages otherwise required by law that are
2.19 	included in the health benefit plan and indicate that they are
2.20 	included.  The insurer must require that a copy of this written
2.21 	list be provided, prior to the effective date of the health
2.22 	benefit plan, to each employee who is eligible for health
2.23 	coverage under the employer's plan.
2.24 	(b) The definitions in section 62L.02 apply to this section
2.25 	as modified by this section.
2.26 	(c) An employer may provide a health benefit plan permitted
2.27 	under this section to its employees, the employees' dependents,
2.28 	and other persons eligible for coverage under the employer's
2.29 	plan, notwithstanding chapter 363A or any other law to the
2.30 	contrary.

2.31 	Sec. 2. EFFECTIVE DATE.
 2.32 	Section 1 is effective the day following final enactment.