1.1 	A bill for an act
1.2 	relating to insurance; health; regulating loss ratios; regulating small employer 
1.3 	coverages; requiring medical bill disclosure without charge; amending Minnesota 
1.4 	Statutes 2004, sections 62A.02, by adding a subdivision; 62A.021, subdivision 
1.5 	1; 62A.65, subdivision 3; 62L.03, subdivision 3; 290.0672, subdivision 1; 
1.6 	Minnesota Statutes 2005 Supplement, section 62L.12, subdivision 2; proposing 
1.7 	coding for new law in Minnesota Statutes, chapter 62J; repealing Minnesota 
1.8 	Statutes 2004, section 62E.11, subdivisions 9, 10.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	Section 1. Minnesota Statutes 2004, section 62A.02, is amended by adding a 
1.11 	subdivision to read:
1.12 		Subd. 3a.Individual policy forms file and use; minimum loss ratio guarantee.
 1.13 	(a) Notwithstanding subdivisions 2, 3, 4a, 5a, and 6, individual premium rates may be used 
1.14 	upon filing with the department of an individual policy form if the filing is accompanied 
1.15 	by the individual policy form filing and a minimum loss ratio guarantee.  Insurers may 
1.16 	use the filing procedure specified in this subdivision only if the affected individual policy 
1.17 	forms disclose the benefit of a minimum loss ratio guarantee.  Insurers may amend 
1.18 	individual policy forms to provide for a minimum loss ratio guarantee.  If an insurer elects 
1.19 	to use the filing procedure in this subdivision for an individual policy form or forms, the 
1.20 	insurer shall not use a filing of premium rates that does not provide a minimum loss ratio 
1.21 	guarantee for that individual policy form or forms.
1.22 	(b) The minimum loss ratio guarantee must be in writing and must contain at least 
1.23 	the following:
1.24 	(1) an actuarial memorandum specifying the expected loss ratio that complies with 
1.25 	the standards as set forth in this subdivision;
2.1 	(2) a statement certifying that all rates, fees, dues, and other charges are not 
2.2 	excessive, inadequate, or unfairly discriminatory;
2.3 	(3) detailed experience information concerning the policy forms;
2.4 	(4) a step-by-step description of the process used to develop the experience loss 
2.5 	ratio, including demonstration with supporting data;
2.6 	(5) guarantee of specific lifetime minimum loss ratio that must be greater than or 
2.7 	equal to 65 percent for policies issued to individuals or for certificates issued to members 
2.8 	of an association that does not offer coverage to small employers, taking into consideration 
2.9 	adjustments for duration;
2.10 	(6) a guarantee that the actual Minnesota loss ratio for the calendar year in which the 
2.11 	new rates take effect, and for each year thereafter until new rates are filed, will meet or 
2.12 	exceed the minimum loss ratio standards referred to in clause (5), adjusted for duration;
2.13 	(7) a guarantee that the actual Minnesota lifetime loss ratio shall meet or exceed the 
2.14 	minimum loss ratio standards referred to in clause (5); and 
2.15 	(8) if the annual earned premium volume in Minnesota under the particular policy 
2.16 	form is less than $2,500,000, the minimum loss ratio guarantee must be based partially on 
2.17 	the Minnesota earned premium and other credible factors as specified by the commissioner.
2.18 	(c) The actual Minnesota minimum loss ratio results for each year at issue must be 
2.19 	independently audited at the insurer's expense, and the audit report must be filed with the 
2.20 	commissioner not later than 120 days after the end of the year at issue.
2.21 	(d) The insurer shall refund premiums in the amount necessary to bring the actual 
2.22 	loss ratio up to the guaranteed minimum loss ratio.
2.23 	(e) A Minnesota policyholder affected by the guaranteed minimum loss ratio shall 
2.24 	receive a portion of the premium refund relative to the premium paid by the policyholder. 
2.25 	The refund must be made to all Minnesota policyholders insured under the applicable 
2.26 	policy form during the year at issue if the refund would equal $10 or more per policy.  The 
2.27 	refund must include statutory interest from July 1 of the year at issue until the date of 
2.28 	payment.  Payment must be made not later than 180 days after the end of the year at issue.
2.29 	(f) Premium refunds of less than $10 per insured must be credited to the insured's 
2.30 	account.
2.31 	(g) Subdivisions 2 and 3 do not apply if premium rates are filed with the department 
2.32 	and accompanied by a minimum loss ratio guarantee that meets the requirements of this 
2.33 	subdivision.  Such filings are deemed approved.   When determining a loss ratio for the 
2.34 	purposes of loss ratio guarantee, the insurer shall divide the total of the claims incurred, 
2.35 	plus preferred provider organization expenses, case management, and utilization review 
3.1 	expenses, plus reinsurance premiums less reinsurance recoveries by the premiums earned 
3.2 	less state and local taxes less other assessments. 
3.3 	(h) The policy form filing of an insurer using the filing procedure with a minimum 
3.4 	loss ratio guarantee must disclose to the enrollee, member, or subscriber an explanation of 
3.5 	the lifetime loss ratio guarantee, and the actual loss ratio, and any adjustments for duration.
3.6 	(i) The insurer who elects to use the filing procedure with a minimum loss ratio 
3.7 	guarantee shall notify all policyholders of the refund calculation, the result of the refund 
3.8 	calculation, the percentage of premium on an aggregate basis to be refunded, if any, any 
3.9 	amount of the refund attributed to the payment of interests, and an explanation of amounts 
3.10 	less than $10.

3.11 	Sec. 2. Minnesota Statutes 2004, section 62A.021, subdivision 1, is amended to read:
3.12 		Subdivision 1.Loss ratio standards.  (a) Notwithstanding section 62A.02, 
3.13 	subdivision 3, relating to loss ratios, and except as otherwise authorized by section 
3.14 	62A.02, subdivision 3a, for individual policies or certificates, health care policies or 
3.15 	certificates shall not be delivered or issued for delivery to an individual or to a small 
3.16 	employer as defined in section 62L.02, unless the policies or certificates can be expected, 
3.17 	as estimated for the entire period for which rates are computed to provide coverage, to 
3.18 	return to Minnesota policyholders and certificate holders in the form of aggregate benefits 
3.19 	not including anticipated refunds or credits, provided under the policies or certificates, (1) 
3.20 	at least 75 percent of the aggregate amount of premiums earned in the case of policies 
3.21 	issued in the small employer market, as defined in section 62L.02, subdivision 27, 
3.22 	calculated on an aggregate basis; and (2) at least 65 percent of the aggregate amount 
3.23 	of premiums earned in the case of each policy form or certificate form issued in the 
3.24 	individual market; calculated on the basis of incurred claims experience or incurred health 
3.25 	care expenses where coverage is provided by a health maintenance organization on a 
3.26 	service rather than reimbursement basis and earned premiums for the period and according 
3.27 	to accepted actuarial principles and practices.  Assessments by the reinsurance association 
3.28 	created in chapter 62L and all types of taxes, surcharges, or assessments created by Laws 
3.29 	1992, chapter 549, or created on or after April 23, 1992, are included in the calculation of 
3.30 	incurred claims experience or incurred health care expenses. The applicable percentage 
3.31 	for policies and certificates issued in the small employer market, as defined in section 
3.32 	62L.02, increases by one percentage point on July 1 of each year, beginning on July 1, 
3.33 	1994, until an 82 percent loss ratio is reached on July 1, 2000.  The applicable percentage 
3.34 	for policy forms and certificate forms issued in the individual market increases by one 
3.35 	percentage point on July 1 of each year, beginning on July 1, 1994, until a 72 percent loss 
4.1 	ratio is reached on July 1, 2000.  A health carrier that enters a market after July 1, 1993, 
4.2 	does not start at the beginning of the phase-in schedule and must instead comply with the 
4.3 	loss ratio requirements applicable to other health carriers in that market for each time 
4.4 	period.  Premiums earned and claims incurred in markets other than the small employer 
4.5 	and individual markets are not relevant for purposes of this section.
4.6 	(b) All filings of rates and rating schedules shall demonstrate that actual expected 
4.7 	claims in relation to premiums comply with the requirements of this section when 
4.8 	combined with actual experience to date.  Filings of rate revisions shall also demonstrate 
4.9 	that the anticipated loss ratio over the entire future period for which the revised rates 
4.10 	are computed to provide coverage can be expected to meet the appropriate loss ratio 
4.11 	standards, and aggregate loss ratio from inception of the policy form or certificate form 
4.12 	shall equal or exceed the appropriate loss ratio standards.
4.13 	(c) A health carrier that issues health care policies and certificates to individuals 
4.14 	or to small employers, as defined in section 62L.02, in this state shall file annually its 
4.15 	rates, rating schedule, and supporting documentation including ratios of incurred losses 
4.16 	to earned premiums by policy form or certificate form duration for approval by the 
4.17 	commissioner according to the filing requirements and procedures prescribed by the 
4.18 	commissioner.  The supporting documentation shall also demonstrate in accordance with 
4.19 	actuarial standards of practice using reasonable assumptions that the appropriate loss ratio 
4.20 	standards can be expected to be met over the entire period for which rates are computed.  
4.21 	The demonstration shall exclude active life reserves.  If the data submitted does not 
4.22 	confirm that the health carrier has satisfied the loss ratio requirements of this section, 
4.23 	the commissioner shall notify the health carrier in writing of the deficiency.  The health 
4.24 	carrier shall have 30 days from the date of the commissioner's notice to file amended rates 
4.25 	that comply with this section.  If the health carrier fails to file amended rates within the 
4.26 	prescribed time, the commissioner shall order that the health carrier's filed rates for the 
4.27 	nonconforming policy form or certificate form be reduced to an amount that would have 
4.28 	resulted in a loss ratio that complied with this section had it been in effect for the reporting 
4.29 	period of the supplement.  The health carrier's failure to file amended rates within the 
4.30 	specified time or the issuance of the commissioner's order amending the rates does not 
4.31 	preclude the health carrier from filing an amendment of its rates at a later time.  The 
4.32 	commissioner shall annually make the submitted data available to the public at a cost not 
4.33 	to exceed the cost of copying.  The data must be compiled in a form useful for consumers 
4.34 	who wish to compare premium charges and loss ratios.
5.1 	(d) Each sale of a policy or certificate that does not comply with the loss ratio 
5.2 	requirements of this section is an unfair or deceptive act or practice in the business of 
5.3 	insurance and is subject to the penalties in sections 72A.17 to 72A.32.
5.4 	(e)(1) For purposes of this section, health care policies issued as a result of 
5.5 	solicitations of individuals through the mail or mass media advertising, including both 
5.6 	print and broadcast advertising, shall be treated as individual policies.
5.7 	(2) For purposes of this section, (i) "health care policy" or "health care certificate" 
5.8 	is a health plan as defined in section 62A.011; and (ii) "health carrier" has the meaning 
5.9 	given in section 62A.011 and includes all health carriers delivering or issuing for delivery 
5.10 	health care policies or certificates in this state or offering these policies or certificates 
5.11 	to residents of this state.
5.12 	(f) The loss ratio phase-in as described in paragraph (a) does not apply to individual 
5.13 	policies and small employer policies issued by a health plan company that is assessed less 
5.14 	than three percent of the total annual amount assessed by the Minnesota Comprehensive 
5.15 	Health Association.  These policies must meet a 68 percent loss ratio for individual 
5.16 	policies, a 71 percent loss ratio for small employer policies with fewer than ten employees, 
5.17 	and a 75 percent loss ratio for all other small employer policies.
5.18 	(g) Notwithstanding paragraphs (a) and (f), the loss ratio shall be 60 percent for a 
5.19 	health plan as defined in section 62A.011, offered by an insurance company licensed under 
5.20 	chapter 60A that is assessed less than ten percent of the total annual amount assessed 
5.21 	by the Minnesota Comprehensive Health Association.  For purposes of the percentage 
5.22 	calculation of the association's assessments, an insurance company's assessments include 
5.23 	those of its affiliates.
5.24 	(h) The commissioners of commerce and health shall each annually issue a 
5.25 	public report listing, by health plan company, the actual loss ratios experienced in the 
5.26 	individual and small employer markets in this state by the health plan companies that the 
5.27 	commissioners respectively regulate.  The commissioners shall coordinate release of these 
5.28 	reports so as to release them as a joint report or as separate reports issued the same day. 
5.29 	The report or reports shall be released no later than June 1 for loss ratios experienced for 
5.30 	the preceding calendar year.  Health plan companies shall provide to the commissioners 
5.31 	any information requested by the commissioners for purposes of this paragraph. 

5.32 	Sec. 3. Minnesota Statutes 2004, section 62A.65, subdivision 3, is amended to read:
5.33 		Subd. 3.Premium rate restrictions. No individual health plan may be offered, 
5.34 	sold, issued, or renewed to a Minnesota resident unless the premium rate charged is 
5.35 	determined in accordance with the following requirements:
6.1 	(a) Premium rates must be no more than 25 percent above and no more than 25 
6.2 	percent below the index rate charged to individuals for the same or similar coverage, 
6.3 	adjusted pro rata for rating periods of less than one year. The premium variations 
6.4 	permitted by this paragraph must be based only upon health status, claims experience, 
6.5 	and occupation. For purposes of this paragraph, health status includes refraining from 
6.6 	tobacco use or other actuarially valid lifestyle factors associated with good health, 
6.7 	provided that the lifestyle factor and its effect upon premium rates have been determined 
6.8 	by the commissioner to be actuarially valid and have been approved by the commissioner. 
6.9 	Variations permitted under this paragraph must not be based upon age or applied 
6.10 	differently at different ages. This paragraph does not prohibit use of a constant percentage 
6.11 	adjustment for factors permitted to be used under this paragraph.
6.12 	(b) Premium rates may vary based upon the ages of covered persons only as 
6.13 	provided in this paragraph. In addition to the variation permitted under paragraph (a), 
6.14 	each health carrier may use an additional premium variation based upon age of up to 
6.15 	plus or minus 50 percent of the index rate.
6.16 	(c) A health carrier may request approval by the commissioner to establish no 
6.17 	more than three geographic regions and to establish separate index rates for each region, 
6.18 	provided that the index rates do not vary between any two regions by more than 20 
6.19 	percent. Health carriers that do not do business in the Minneapolis/St. Paul metropolitan 
6.20 	area may request approval for no more than two geographic regions, and clauses (2) and 
6.21 	(3) do not apply to approval of requests made by those health carriers. The commissioner 
6.22 	may grant approval if the following conditions are met:
6.23 	(1) the geographic regions must be applied uniformly by the health carrier;
6.24 	(2) one geographic region must be based on the Minneapolis/St. Paul metropolitan 
6.25 	area;
6.26 	(3) for each geographic region that is rural, the index rate for that region must not 
6.27 	exceed the index rate for the Minneapolis/St. Paul metropolitan area; and
6.28 	(4) the health carrier provides actuarial justification acceptable to the commissioner 
6.29 	for the proposed geographic variations in index rates, establishing that the variations are 
6.30 	based upon differences in the cost to the health carrier of providing coverage.
6.31 	(d) Health carriers may use rate cells and must file with the commissioner the rate 
6.32 	cells they use. Rate cells must be based upon the number of adults or children covered 
6.33 	under the policy and may reflect the availability of Medicare coverage. The rates for 
6.34 	different rate cells must not in any way reflect generalized differences in expected costs 
6.35 	between principal insureds and their spouses.
7.1 	(e) In developing its index rates and premiums for a health plan, a health carrier shall 
7.2 	take into account only the following factors:
7.3 	(1) actuarially valid differences in rating factors permitted under paragraphs (a) 
7.4 	and (b); and
7.5 	(2) actuarially valid geographic variations if approved by the commissioner as 
7.6 	provided in paragraph (c).
7.7 	(f) All premium variations must be justified in initial rate filings and upon request of 
7.8 	the commissioner in rate revision filings. All rate variations are subject to approval by 
7.9 	the commissioner.
7.10 	(g) The loss ratio must comply with the section  62A.021 requirements for individual 
7.11 	health plans. 
7.12 	(h) The rates must not be approved, unless the commissioner has determined that the 
7.13 	rates are reasonable. In determining reasonableness, the commissioner shall consider the 
7.14 	growth rates applied under section  62J.04, subdivision 1, paragraph (b), to the calendar 
7.15 	year or years that the proposed premium rate would be in effect, actuarially valid changes 
7.16 	in risks associated with the enrollee populations, and actuarially valid changes as a result 
7.17 	of statutory changes in Laws 1992, chapter 549. 
7.18 	(i) An insurer may, as part of a loss ratio guarantee filing under section 62A.02, 
7.19 	subdivision 3a, include a rating practices guarantee as provided in this paragraph. The 
7.20 	rating practices guarantee must be in writing and must guarantee that the policy form 
7.21 	will be offered, sold, issued, and renewed only with premium rates and premium rating 
7.22 	practices that comply with subdivisions 2, 3, 4, and 5. The rating practices guarantee 
7.23 	must be accompanied by an actuarial memorandum that demonstrates that the premium 
7.24 	rates and premium rating system used in connection with the policy form will satisfy the 
7.25 	guarantee. The guarantee must guarantee refunds of any excess premiums to policyholders 
7.26 	charged premiums that exceed those permitted under subdivision 2, 3, 4, or 5. An insurer 
7.27 	that complies with this paragraph in connection with a policy form is exempt from the 
7.28 	requirement of prior approval by the commissioner under paragraphs (c), (f), and (h).

7.29 	Sec. 4. [62J.83] MEDICAL BILL DISCLOSURE WITHOUT CHARGE.
7.30 	(a) No health plan company or health care provider shall charge a fee to a patient or 
7.31 	a patient's representative for providing the total amount due for the patient's outstanding 
7.32 	medical bills. Upon the written request by a patient or a patient's representative for the 
7.33 	total amount due for outstanding medical bills, a health plan company or health care 
7.34 	provider shall provide, in writing, the total amount due. The response must be postmarked 
7.35 	within ten business days of receiving the request.
8.1 	(b) A health plan company or health care provider that fails to comply with this 
8.2 	section, by either failing to provide the information or charging for the information, shall 
8.3 	void the patient's outstanding medical bills due to the company or plan.

8.4 	EFFECTIVE DATE. This section is effective July 1, 2006.

8.5 	Sec. 5. Minnesota Statutes 2004, section 62L.03, subdivision 3, is amended to read:
8.6 		Subd. 3.Minimum participation and contribution. (a) A small employer that has 
8.7 	at least 75 percent of its eligible employees who have not waived coverage participating in 
8.8 	a health benefit plan and that contributes at least 50 percent toward the cost of coverage of 
8.9 	each eligible employee must be guaranteed coverage on a guaranteed issue basis from any 
8.10 	health carrier participating in the small employer market. The participation level of eligible 
8.11 	employees must be determined at the initial offering of coverage and at the renewal date 
8.12 	of coverage. A health carrier must not increase the participation requirements applicable 
8.13 	to a small employer at any time after the small employer has been accepted for coverage. 
8.14 	For the purposes of this subdivision, waiver of coverage includes only waivers due to: (1) 
8.15 	coverage under another group health plan; (2) coverage under Medicare Parts A and B; (3) 
8.16 	coverage under MCHA permitted under section  62E.141; or (4) coverage under medical 
8.17 	assistance under chapter 256B or general assistance medical care under chapter 256D. 
8.18 	(b) If a small employer does not satisfy the contribution or participation requirements 
8.19 	under this subdivision, a health carrier may voluntarily issue or renew individual health 
8.20 	plans, or a health benefit plan which must fully comply with this chapter. A health carrier 
8.21 	that provides a health benefit plan to a small employer that does not meet the contribution 
8.22 	or participation requirements of this subdivision must maintain this information in its files 
8.23 	for audit by the commissioner. A health carrier may not offer an individual health plan, 
8.24 	purchased through an arrangement between the employer and the health carrier, to any 
8.25 	employee unless the health carrier also offers the individual health plan, on a guaranteed 
8.26 	issue basis, to all other employees of the same employer. An arrangement permitted under 
8.27 	section 62L.12, subdivision 2, paragraph (k), is not an arrangement between the employer 
8.28 	and the health carrier for purposes of this paragraph.
8.29 	(c) Nothing in this section obligates a health carrier to issue coverage to a small 
8.30 	employer that currently offers coverage through a health benefit plan from another health 
8.31 	carrier, unless the new coverage will replace the existing coverage and not serve as one 
8.32 	of two or more health benefit plans offered by the employer. This paragraph does not 
8.33 	apply if the small employer will meet the required participation level with respect to 
8.34 	the new coverage.

9.1 	Sec. 6. Minnesota Statutes 2005 Supplement, section 62L.12, subdivision 2, is 
9.2 	amended to read:
9.3 		Subd. 2.Exceptions. (a) A health carrier may sell, issue, or renew individual 
9.4 	conversion policies to eligible employees otherwise eligible for conversion coverage under 
9.5 	section 62D.104 as a result of leaving a health maintenance organization's service area.
9.6 	(b) A health carrier may sell, issue, or renew individual conversion policies to 
9.7 	eligible employees otherwise eligible for conversion coverage as a result of the expiration 
9.8 	of any continuation of group coverage required under sections 62A.146, 62A.17, 62A.21, 
9.9 	62C.142, 62D.101, and 62D.105.
9.10 	(c) A health carrier may sell, issue, or renew conversion policies under section 
9.11 	62E.16 to eligible employees.
9.12 	(d) A health carrier may sell, issue, or renew individual continuation policies to 
9.13 	eligible employees as required.
9.14 	(e) A health carrier may sell, issue, or renew individual health plans if the coverage 
9.15 	is appropriate due to an unexpired preexisting condition limitation or exclusion applicable 
9.16 	to the person under the employer's group health plan or due to the person's need for health 
9.17 	care services not covered under the employer's group health plan.
9.18 	(f) A health carrier may sell, issue, or renew an individual health plan, if the 
9.19 	individual has elected to buy the individual health plan not as part of a general plan to 
9.20 	substitute individual health plans for a group health plan nor as a result of any violation of 
9.21 	subdivision 3 or 4.
9.22 	(g) Nothing in this subdivision relieves a health carrier of any obligation to provide 
9.23 	continuation or conversion coverage otherwise required under federal or state law.
9.24 	(h) Nothing in this chapter restricts the offer, sale, issuance, or renewal of coverage 
9.25 	issued as a supplement to Medicare under sections 62A.31 to 62A.44, or policies or 
9.26 	contracts that supplement Medicare issued by health maintenance organizations, or those 
9.27 	contracts governed by sections 1833, 1851 to 1859, 1860D, or 1876 of the federal Social 
9.28 	Security Act, United States Code, title 42, section 1395 et seq., as amended.
9.29 	(i) Nothing in this chapter restricts the offer, sale, issuance, or renewal of individual 
9.30 	health plans necessary to comply with a court order.
9.31 	(j) A health carrier may offer, issue, sell, or renew an individual health plan to 
9.32 	persons eligible for an employer group health plan, if the individual health plan is a high 
9.33 	deductible health plan for use in connection with an existing health savings account, in 
9.34 	compliance with the Internal Revenue Code, section 223. In that situation, the same or 
9.35 	a different health carrier may offer, issue, sell, or renew a group health plan to cover 
9.36 	the other eligible employees in the group.
10.1 	(k) A health carrier may offer, sell, issue, or renew an individual health plan to one 
10.2 	or more employees of a small employer if the individual health plan is marketed directly to 
10.3 	all employees of the small employer and the small employer does not contribute directly 
10.4 	or indirectly to the premiums or facilitate the administration of the individual health plan. 
10.5 	The requirement to market an individual health plan to all employees does not require the 
10.6 	health carrier to offer or issue an individual health plan to any employee. For purposes 
10.7 	of this paragraph, an employer is not contributing to the premiums or facilitating the 
10.8 	administration of the individual health plan if the employer does not contribute to the 
10.9 	premium and merely collects the premiums from an employee's wages or salary through 
10.10 	payroll deductions and submits payment for the premiums of one or more employees in a 
10.11 	lump sum to the health carrier. Except for coverage under section 62A.65, subdivision 5, 
10.12 	paragraph (b), or 62E.16, at the request of an employee, the health carrier may bill the 
10.13 	employer for the premiums payable by the employee, provided that the employer is not 
10.14 	liable for payment except from payroll deductions for that purpose. If an employer is 
10.15 	submitting payments under this paragraph, the health carrier shall provide a cancellation 
10.16 	notice directly to the primary insured at least ten days prior to termination of coverage 
10.17 	for nonpayment of premium. Individual coverage under this section may be offered only 
10.18 	if the small employer has not provided coverage under section 62L.03 to the employees 
10.19 	within the past 12 months.
10.20 	The employer must provide a written and signed statement to the health carrier that 
10.21 	the employer is not contributing directly or indirectly to the employee's premiums. The 
10.22 	health carrier may rely on the employer's statement and is not required to guarantee-issue 
10.23 	individual health plans to the employer's other current or future employees.

10.24 	Sec. 7. Minnesota Statutes 2004, section 290.0672, subdivision 1, is amended to read:
10.25 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
10.26 	have the meanings given.
10.27 	(b) "Long-term care insurance" means a policy that:
10.28 	(1)(i) qualifies for a deduction under section 213 of the Internal Revenue Code, 
10.29 	disregarding the 7.5 percent income test; or meets the requirements given in section  
10.30 	62A.46; or provides similar coverage issued under the laws of another jurisdiction; and 
10.31 	(2) (ii) has a lifetime long-term care benefit limit of not less than $100,000; and
10.32 	(3) (iii) has been offered in compliance with the inflation protection requirements of 
10.33 	section  62S.23; or 
10.34 	(2) a life insurance policy that provides an accelerated benefit contingent only upon 
10.35 	the receipt of long-term care services under section 61A.072, subdivision 4.
11.1 	(c) "Qualified beneficiary" means the taxpayer or the taxpayer's spouse.
11.2 	(d) "Premiums deducted in determining federal taxable income" means the lesser of 
11.3 	(1) long-term care insurance premiums that qualify as deductions under section 213 of 
11.4 	the Internal Revenue Code; and (2) the total amount deductible for medical care under 
11.5 	section 213 of the Internal Revenue Code.

11.6 	Sec. 8.  REPEALER.
 11.7 	Minnesota Statutes 2004, section 62E.11, subdivisions 9 and 10, are repealed.