SF 3841
Introduction - 94th Legislature (2025 - 2026)
Posted on 02/24/2026 10:19 a.m.
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A bill for an act
relating to insurance; making technical and date adjustments to the Minnesota
premium security plan; amending Minnesota Statutes 2024, section 62E.23,
subdivision 1; Minnesota Statutes 2025 Supplement, sections 62E.23, subdivision
1a; 297I.20, subdivision 7.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 62E.23, subdivision 1, is amended to read:
Subdivision 1.
Administration of plan.
(a) The association is Minnesota's reinsurance
entity to administer the state-based reinsurance program referred to as the Minnesota premium
security plan.
(b) The association may apply for any available federal funding for the plan. All funds
received by or appropriated to the association shall be deposited in the premium security
plan account in section 62E.25, subdivision 1. The association shall notify the chairs and
ranking minority members of the legislative committees with jurisdiction over health and
human services and insurance within ten days of receiving any federal funds.
(c) The association must collect or access data from an eligible health carrier that are
necessary to determine reinsurance payments, according to the data requirements under
subdivision 5, paragraph (c).
(d) The board must not use any funds allocated to the plan for staff retreats, promotional
giveaways, excessive executive compensation, or promotion of federal or state legislative
or regulatory changes.
(e) For each applicable benefit year, the association must notify eligible health carriers
of reinsurance payments to be made for the applicable benefit year no later than June 30 of
the year following the applicable benefit year.
(f) On a quarterly basis during the applicable benefit year, the association must provide
each eligible health carrier with the calculation of total reinsurance payment requests.
(g) By August 15 of the year following the applicable benefit year, the association must
disburse all applicable reinsurance payments to an eligible health carrier.
new text begin
(h) For benefits year 2027, the association must disburse all applicable reinsurance
payments to an eligible health carrier by September 30.
new text end
Sec. 2.
Minnesota Statutes 2025 Supplement, section 62E.23, subdivision 1a, is amended
to read:
Subd. 1a.
2028 assessment on group health carriers.
(a) An assessment is imposed in
calendar year 2028 on group health carriers operating deleted text begin under thedeleted text end new text begin innew text end Minnesota deleted text begin premium
security plan indeleted text end new text begin duringnew text end benefit year 2027. This is a onetime assessment.
(b) By May 1, 2028, the association must provide each group health carrier with an
estimate of the carrier's assessment under paragraph (a).
(c) By deleted text begin June 30deleted text end new text begin July 25new text end , 2028, the association must notify each group health carrier of
the carrier's assessment amount under paragraph (a). The association must determine each
carrier's assessment amount, in consultation with the commissioner, based on the group
health carrier's portion of the total premiums for group health plans written in Minnesota
for benefit year 2027.new text begin The assessment must be approved by the commissioner.new text end The
association must establish the assessment amount for each group health plan so that the
aggregate assessment amount collected from group health plans under this subdivision
equals the amount necessary for the appropriations and transfers under section 62E.25,
subdivision 1.
(d) Subject to paragraph (e), each group health carrier must pay the assessment under
paragraph (a) to the association by August deleted text begin 1deleted text end new text begin 29new text end , 2028. A group health plan must pay the
assessment in the manner determined by the commissioner.
(e) A group health carrier may apply to the commissioner to defer all or part of the
assessment imposed under paragraph (a). The application must be submitted to the
commissioner by May 15, 2028. The commissioner may defer all or part of the assessment
if the commissioner determines the payment of the assessment places the group health
carrier in a financially impaired condition. The commissioner may deny an application for
deferral under this paragraph. No later than June 15, 2028, the commissioner must notify
the association and the group health carrier whether the assessment deferral is approved or
denied. If the commissioner approves the deferral request, the notice must include the amount
of and due date for the deferred portion of the assessment. If all or part of the assessment
is deferred, the association must include the amount deferred in the other group health
carriers' assessments in a proportionate manner consistent with this subdivision. deleted text begin Thedeleted text end new text begin Anew text end
group health carrier that receives a deferral is liable deleted text begin to the associationdeleted text end for the amount deferred
and is prohibited from receiving or becoming entitled to a reinsurance payment under the
Minnesota premium security plan until the group health carrier has paid the deferred
assessment.
(f) If the association determines the assessment imposed under paragraph (a) exceeds
or is less than the amount necessary to operate and administer the Minnesota premium
security plan and issue reinsurance payments, the association must require group health
carriers to pay an additional amount or the association must issue a refund to the group
health carriers. The association must determine the accuracy of the assessment by deleted text begin May 30deleted text end new text begin
March 15new text end , 2029.
deleted text begin
(g) By August 15, 2028, the association must remit the assessments collected under this
subdivision to the commissioner for deposit in the premium security plan account created
under section 62E.25.
deleted text end
Sec. 3.
Minnesota Statutes 2025 Supplement, section 297I.20, subdivision 7, is amended
to read:
Subd. 7.
Reinsurance credit.
Beginning with taxable years after December 31, 2028,
a taxpayer may claim a credit against the premiums tax imposed under this chapter equal
to the amount of the assessment paid by the taxpayer under section 62E.23 in the immediately
preceding calendar year. If the amount of the credit exceeds the liability for tax under this
chapter, the commissioner must refund the excess to the deleted text begin insurance companydeleted text end new text begin taxpayernew text end . An
amount sufficient to pay the refunds under this section is appropriated to the commissioner
from the general fund. The credit under this subdivision does not affect the calculation of
fire state aid under section 477B.03 and police state aid under section 477C.03. The
commissioner of commerce must annually provide to the commissioner a list of assessments
paid by taxpayers under section 62E.23 by March 1 of the calendar year following the
assessment.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for taxable years beginning after December
31, 2028.
new text end