1.1 	A bill for an act
1.2 	relating to health; modifying certain private sector health coverages; requiring an 
1.3 	annual medical malpractice insurance report; authorizing service cooperatives 
1.4 	to provide a health care program for certain nursing homes and boarding care 
1.5 	homes;amending Minnesota Statutes 2004, sections 62D.095, subdivisions 3, 4, 
1.6 	by adding a subdivision; 123A.21, subdivision 7; proposing coding for new law 
1.7 	in Minnesota Statutes, chapter 62Q.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	ARTICLE 1
1.10 	PRIVATE SECTOR HEALTH COVERAGE PROVISIONS

1.11 	Section 1. Minnesota Statutes 2004, section 62D.095, subdivision 3, is amended to 
1.12 	read:
1.13 		Subd. 3.Deductibles. (a) A health maintenance contract issued by a health 
1.14 	maintenance organization that is assessed less than three percent of the total annual amount 
1.15 	assessed by the Minnesota comprehensive health association may impose deductibles not 
1.16 	to exceed $3,000 $5,000 per person, per year and $6,000 $10,000 per family, per year. For 
1.17 	purposes of the percentage calculation, a health maintenance organization's assessments 
1.18 	include those of its affiliates.
1.19 	(b) All other health maintenance contracts may impose deductibles not to exceed 
1.20 	$2,250 per person, per year and $4,500 per family, per year.

1.21 	Sec. 2. Minnesota Statutes 2004, section 62D.095, subdivision 4, is amended to read:
1.22 		Subd. 4.Annual out-of-pocket maximums. (a) A health maintenance contract 
1.23 	issued by a health maintenance organization that is assessed less than three percent of the 
1.24 	total annual amount assessed by the Minnesota comprehensive health association must 
2.1 	include a limitation not to exceed $4,500 $5,000 per person and $7,500 $10,000 per 
2.2 	family on total annual out-of-pocket enrollee cost-sharing expenses. For purposes of the 
2.3 	percentage calculation, a health maintenance organization's assessments include those 
2.4 	of its affiliates.
2.5 	(b) All other health maintenance contracts must include a limitation not to 
2.6 	exceed $3,000 per person and $6,000 per family on total annual out-of-pocket enrollee 
2.7 	cost-sharing expenses.

2.8 	Sec. 3. Minnesota Statutes 2004, section 62D.095, is amended by adding a subdivision 
2.9 	to read:
2.10 		Subd. 5a. Lifetime maximum benefit. (a) A health maintenance contract issued 
2.11 	by a health maintenance organization may impose a lifetime maximum benefit no less 
2.12 	than $3,000,000. At no time shall a health maintenance organization impose a lifetime 
2.13 	maximum lower than the required lifetime maximum of the comprehensive health 
2.14 	insurance plan under section 62E.12.
2.15 	(b) The comprehensive health insurance plan is available under section 62E.14, 
2.16 	subdivision 4c, paragraph (a), to those meeting the lifetime maximum benefit, without 
2.17 	providing evidence of rejection.

2.18 	Sec. 4. [62Q.645] DISTRIBUTION OF INFORMATION; ADMINISTRATIVE 
2.19 	EFFICIENCY AND COVERAGE OPTIONS.
2.20 	(a) The commissioner may use reports submitted by health  plan companies, service 
2.21 	cooperatives, and the public employee  insurance program created in section 43A.316 
2.22 	to compile entity specific administrative efficiency reports; may make these reports 
2.23 	available on state agency Web sites,  including minnesotahealthinfo.com; and may include 
2.24 	information  on: 
2.25 	(1) number of covered lives;  
2.26 	(2) covered services;  
2.27 	(3) geographic availability;  
2.28 	(4) whom to contact to obtain current premium rates;  
2.29 	(5) administrative costs, using the definition of  administrative costs developed under 
2.30 	section 62J.38;  
2.31 	(6) Internet links to information on the health plan, if  available; and  
2.32 	(7) any other information about the health plan identified  by the commissioner 
2.33 	as being useful for employers, consumers,  providers, and others in evaluating health 
2.34 	plan options. 
3.1 	(b) This section does not apply to a health plan company  unless its annual Minnesota 
3.2 	premiums exceed $50,000,000 based on the most recent assessment base of the Minnesota 
3.3 	Comprehensive Health Association. For purposes of this  determination, the premiums of a 
3.4 	health plan company include  those of its affiliates. 

3.5 	Sec. 5. MEDICAL MALPRACTICE INSURANCE REPORT.
 3.6 	(a) The commissioner of commerce shall provide to the legislature annually a brief 
3.7 	written report on the status of the market for medical malpractice insurance in Minnesota. 
3.8 	The report must summarize, interpret, explain, and analyze information on that subject 
3.9 	available to the commissioner, through annual statements filed by insurance companies, 
3.10 	information obtained under paragraph (c), and other sources. 
3.11 	(b) The annual report must consider, to the extent possible using definitions 
3.12 	developed by the commissioner, Minnesota specific data on market shares; premiums 
3.13 	received; amounts paid to settle claims that were not litigated, claims that were settled 
3.14 	after litigation began, and claims that were litigated to court judgment; amounts spent 
3.15 	on processing, investigation, litigation, and otherwise handling claims; other sales and 
3.16 	administrative costs; and the loss ratios of the insurers. 
3.17 	(c) Each insurance company that provides medical malpractice insurance in this state 
3.18 	shall, no later than June 1 each year, file with the commissioner of commerce, on a form 
3.19 	prescribed by the commissioner and using definitions developed by the commissioner, 
3.20 	the Minnesota specific data referenced in paragraph (b), other than market share, for the 
3.21 	previous calendar year for that insurance company, shown separately for various categories 
3.22 	of coverages including, if possible, hospitals, medical clinics, nursing homes, physicians 
3.23 	who provide emergency medical care, obstetrician gynecologists, and ambulance services. 
3.24 	An insurance company need not comply with this paragraph if its direct premium written 
3.25 	in the state for the previous calendar year is less than $2,000,000.

3.26 	ARTICLE 2
3.27 	SERVICE COOPERATIVES

3.28 	Section 1. Minnesota Statutes 2004, section 123A.21, subdivision 7, is amended to 
3.29 	read:
3.30 		Subd. 7.Educational programs and services. (a) The board of directors of each 
3.31 	SC shall submit annually a plan to the members. The plan shall identify the programs and 
3.32 	services which are suggested for implementation by the SC during the following year and 
3.33 	shall contain components of long-range planning determined by the SC. These programs 
3.34 	and services may include, but are not limited to, the following areas:
4.1 	(1) administrative services;
4.2 	(2) curriculum development;
4.3 	(3) data processing;
4.4 	(4) distance learning and other telecommunication services;
4.5 	(5) evaluation and research;
4.6 	(6) staff development;
4.7 	(7) media and technology centers;
4.8 	(8) publication and dissemination of materials;
4.9 	(9) pupil personnel services;
4.10 	(10) planning;
4.11 	(11) secondary, postsecondary, community, adult, and adult vocational education;
4.12 	(12) teaching and learning services, including services for students with special 
4.13 	talents and special needs;
4.14 	(13) employee personnel services;
4.15 	(14) vocational rehabilitation;
4.16 	(15) health, diagnostic, and child development services and centers;
4.17 	(16) leadership or direction in early childhood and family education;
4.18 	(17) community services;
4.19 	(18) shared time programs;
4.20 	(19) fiscal services and risk management programs;
4.21 	(20) technology planning, training, and support services;
4.22 	(21) health and safety services;
4.23 	(22) student academic challenges; and
4.24 	(23) cooperative purchasing services.
4.25 	(b) A health coverage program provided by one or more SCs:
4.26 	(1) may provide coverage to nursing homes licensed under chapter 144A and 
4.27 	boarding care homes licensed under sections 144.50 to 144.56 and certified for 
4.28 	participation in the medical assistance program, located in this state;
4.29 	(2) must rebid contracts for insurance and third-party administration at least every 
4.30 	four years. The contracts may be regional or statewide in the discretion of the SC; 
4.31 	(3) must comply with section 72A.20, subdivision 26, notwithstanding section 
4.32 	13.203, and must also provide that same information to exclusive representatives of the 
4.33 	employees upon request. A service cooperative shall not terminate coverage, exclude 
4.34 	an employer from future coverage, or otherwise penalize an employer for seeking bids 
4.35 	from other sources of health coverage; and
5.1 	(4) may determine premiums for its health coverage individually for specific 
5.2 	employers or may determine them on a pooled or other basis established by the SC.

5.3 	Sec. 2. EFFECTIVE DATE.
 5.4 	Section 1 is effective the day following final enactment.