1.1 	A bill for an act
1.2 	relating to health; establishing procedures for health care cooperative 
1.3 	arrangements;proposing coding for new law in Minnesota Statutes, chapter 62R.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. [62R.09] ANTITRUST IMMUNITY.
1.6 		Subdivision 1.Intent; purpose. The legislature finds that the goals of controlling 
1.7 	health care costs and improving the quality of and access to health care services in rural 
1.8 	areas is significantly enhanced by the development of health care cooperatives created 
1.9 	under this chapter. Health care cooperatives have provided vital services to patients in 
1.10 	rural health care markets. Through the development of these cooperatives, rural consumers 
1.11 	have received better access to health care and the problems of underserved areas have 
1.12 	been addressed. The legislature further finds that  locally based cooperative efforts 
1.13 	between health care providers does achieve the legislature's goals of improving health care 
1.14 	quality, cost controls, and improved access to health care. To promote these arrangements, 
1.15 	the legislature further clarifies the provisions in this chapter to ensure that cooperative 
1.16 	arrangements under section 62R.06 are not in violation of state or federal antitrust law.
1.17 		Subd. 2.Review and approval. The commissioner shall establish criteria and 
1.18 	procedures to review and authorize contracts and business or financial arrangements 
1.19 	under section 62R.06, subdivision 1. All contracts and business or financial arrangements 
1.20 	must be submitted on a application for approval to the commissioner. The commissioner 
1.21 	shall not deny any application unless the commissioner determines that the proposed 
1.22 	arrangement is likely to result in higher health care costs or diminished access to or quality 
1.23 	of health care than would occur in the competitive marketplace. If the commissioner does 
1.24 	not act within 60 days after receipt of an application, the application will be deemed 
2.1 	approved. The commissioner may condition approval of a proposed arrangement on a 
2.2 	modification of all or part of the arrangement to eliminate any restriction on competition 
2.3 	that is not reasonably related to the goals of improving health care access or quality. The 
2.4 	commissioner may also establish conditions for approval that are reasonably necessary 
2.5 	to protect against abuses of private economic power and to ensure that the arrangement 
2.6 	has oversight by the state. The commissioner shall monitor arrangements approved under 
2.7 	this section to ensure that the arrangement remains in compliance with the conditions of 
2.8 	approval. The commissioner may revoke an approval upon a finding that the arrangement 
2.9 	is not in substantial compliance with the terms of the application or the conditions of 
2.10 	approval.
2.11 		Subd. 3.Applications. Applications for approval under this section must describe 
2.12 	the proposed arrangement in detail. The application must include: the identities of all the 
2.13 	parties to the arrangement; the intent of the arrangement; the expected outcome of the 
2.14 	arrangement; and an explanation of how the arrangement will improve access or quality of 
2.15 	care. The commissioner may ask the attorney general to comment on an application, but 
2.16 	the application and any information obtained by the commissioner under this section is not 
2.17 	admissible in any proceeding brought by the attorney general based on antitrust law.