1.1 	A bill for an act
1.2 	relating to insurance; requiring dental organizations to meet a loss ratio requirement;
1.3 	amending Minnesota Statutes 2024, section 62Q.76, by adding a subdivision; 
1.4 	proposing coding for new law in Minnesota Statutes, chapter 62Q.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2024, section 62Q.76, is amended by adding a subdivision 
1.7 	to read:
1.8 		Subd. 1a.Commissioner. "Commissioner" means the commissioner of commerce.

1.9 	EFFECTIVE DATE. This section is effective January 1, 2026.

1.10 	Sec. 2. [62Q.761] DENTAL LOSS RATIO.
1.11 		Subdivision 1.Loss ratio calculation. Dental loss ratio is equal to the total claims paid 
1.12 	by a dental organization divided by gross premium revenue received by the dental 
1.13 	organization for providing dental care services to enrollees.
1.14 		Subd. 2.Rebate. (a) A dental organization's dental loss ratio calculated under subdivision 
1.15 	1 must be at least 85 percent.
1.16 	(b) A dental organization that does not meet the dental loss ratio under paragraph (a) 
1.17 	must provide remediation to the dental organization's enrollees. Remediation may be achieved 
1.18 	by issuing a direct rebate to enrollees, an increase in dental plan benefit limits for the 
1.19 	following year, or other methods determined by the commissioner.
1.20 		Subd. 3.Rate review and approval. A dental organization must file with the 
1.21 	commissioner proposed changes to premium rates that are effective during the next calendar 
2.1 	year. The commissioner may disapprove a proposed rate change using the standards under 
2.2 	section 62A.02, subdivision 3.
2.3 		Subd. 4.Reporting. (a) By March 1, 2027, a dental organization must submit a report 
2.4 	to the commissioner showing the dental organization's dental loss ratio for each year of the 
2.5 	prior three calendar years and an actuarial memorandum disclosing the financial information 
2.6 	that was used to calculate the dental loss ratio.
2.7 	(b) By March 1, 2028, and each year thereafter, a dental organization must submit a 
2.8 	report to the commissioner showing its dental loss ratio for the previous calendar year, an 
2.9 	actuarial memorandum disclosing the financial information that was used to calculate the 
2.10 	dental loss ratio, a detailed summary of any proposed rate change filed under subdivision 
2.11 	3, and any other information determined by the commissioner.
2.12 	(c) The commissioner must publish on the Department of Commerce's website an annual 
2.13 	report containing the information submitted by a dental organization under paragraphs (a) 
2.14 	and (b). The information must be published in a manner that allows the public to search and 
2.15 	compare the dental loss ratios of all dental organizations.

2.16 	EFFECTIVE DATE. (a) Subdivision 1 is effective January 1, 2026.
2.17 	(b) Subdivision 2 is effective January 1, 2028.
2.18 	(c) Subdivisions 3 and 4 are effective January 1, 2027.