1.1 	A bill for an act
1.2 	relating to health care; creating a study group to make recommendations on the 
1.3 	creation and operation of a voluntary, statewide health plan purchasing pool; 
1.4 	appropriating money.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. LEGISLATIVE FINDINGS.
 1.7 	The legislature finds that:
1.8 	(1) health plan purchasing pools reduce health care costs, improve access to health 
1.9 	care, allow greater choice, and provide continuity of care;
1.10 	(2) large health plan purchasing pools can realize economies of scale, thereby 
1.11 	lowering administrative and operating costs; their significant market presence allows them 
1.12 	to negotiate more effectively to obtain comprehensive coverage at competitive rates; and 
1.13 	their size makes it easier to attract and retain enrollees; and
1.14 	(3) the creation of a large health care purchasing pool that is a public entity and that 
1.15 	offers direct contracting with providers has a greater capacity to serve the public interest 
1.16 	than other forms of organization.
1.17 	The legislature further finds that the creation of a large statewide health plan 
1.18 	purchasing pool is an economical and efficient tool to address the state's current health 
1.19 	care accessibility and affordability concerns.

1.20 	Sec. 2. HEALTH PLAN PURCHASING POOL STUDY GROUP.
 1.21 		Subdivision 1.Creation; membership. (a) A health plan purchasing pool study 
1.22 	group is created to study and make recommendations regarding the creation of a voluntary, 
1.23 	statewide health plan purchasing pool that would contract directly with providers to 
2.1 	provide affordable health coverage to eligible Minnesota residents. The study group is 
2.2 	composed of: 
2.3 	(1) three members of the senate appointed by the Subcommittee on Committees of 
2.4 	the Committee on Rules and Administration, including one member of the minority;
2.5 	(2) three members of the house of representatives, two from the majority party 
2.6 	appointed by the speaker of the house, and one from the minority party appointed by the 
2.7 	minority leader of the house of representatives;
2.8 	(3) the attorney general or the attorney general's designated representative; 
2.9 	(4) three representatives of health care providers appointed as follows:
2.10 	(i) one member appointed by the governor;
2.11 	(ii) one member appointed by the speaker of the house; and
2.12 	(iii) one member appointed by the Subcommittee on Committees of the senate 
2.13 	Committee on Rules and Administration;
2.14 	(5) one member selected by the American Federation of State, County, and 
2.15 	Municipal employees;
2.16 	(6) one member selected by the Minnesota Association of Professional Employees;
2.17 	(7) one member selected by Education Minnesota;
2.18 	(8) one member selected by the Minnesota Business Partnership; and
2.19 	(9) one member selected by the Metropolitan Interdependent Business Organization.
2.20 	All appointments to be made under this subdivision must be made within 30 days of the 
2.21 	effective date of this act.
2.22 	(b) The attorney general or the attorney general's designee shall convene the first 
2.23 	meeting of the study group. The study group shall select its chair at the first meeting.
2.24 		Subd. 2.Study; report. The study group shall study and make recommendations 
2.25 	on the following issues related to the creation, maintenance, and funding of a voluntary, 
2.26 	statewide health plan purchasing pool to provide comprehensive, cost-effective, and 
2.27 	medically appropriate health coverage to all public and private employees in Minnesota 
2.28 	and all Minnesota residents:
2.29 	(1) the creation of an independent public entity to administer the pool; 
2.30 	(2) eligibility and participation requirements for existing public and private health 
2.31 	care purchasing pools, public and private employers, and residents of this state; 
2.32 	(3) how to contract directly with providers to provide comprehensive coverage for 
2.33 	preventive, mental health, dental and other medical services, and comprehensive drug 
2.34 	benefits to enrollees and maximize the cost savings and other efficiencies that a large 
2.35 	purchasing pool  would be expected to generate without the need for a public subsidy; 
3.1 	(4) provisions that allow the pool to contract directly with health care providers 
3.2 	to provide coverage to enrollees;
3.3 	(5) incentives designed to attract and retain the maximum number of enrollees; 
3.4 	(6) recommendations for the administration of the pool and the plans that will be 
3.5 	available to enrollees including, but not limited to, recommendations to keep the pool 
3.6 	solvent and profitable so that public subsidies are not necessary; and 
3.7 	(7) other elements the study group concludes are necessary or desirable for the 
3.8 	pool to possess. 
3.9 	The study group shall submit its report and the draft legislation necessary to 
3.10 	implement its recommendations to the chairs of the legislative committees and divisions 
3.11 	with jurisdiction over health care policy and finance, the Health Care Access Commission, 
3.12 	and the governor by February 1, 2008. 
3.13 		Subd. 3.Staffing. State agencies shall assist the study group with any requests for 
3.14 	information the study group considers necessary to complete the study and report under 
3.15 	subdivision 2.
3.16 		Subd. 4.Removal; vacancies; expenses. Removal of members, vacancies, and 
3.17 	expenses for members shall be as provided in Minnesota Statutes, section 15.059.
3.18 		Subd. 5.Expiration. This section expires after the submission of the report as 
3.19 	required in subdivision 2.

3.20 	Sec. 3. APPROPRIATION.
 3.21 	$....... is appropriated from the general fund to the Legislative Coordinating 
3.22 	Commission for the biennium ending June 30, 2009, for staff support and expenses for the 
3.23 	health plan purchasing pool study group.

3.24 	Sec. 4. EFFECTIVE DATE.
 3.25 	This act is effective the day following final enactment.