HF 182

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to insurance; providing more affordable conversion health coverage as
a bridge to Medicare for persons 60 to 65 years of age; amending Minnesota
Statutes 2006, section 62A.65, subdivision 5.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2006, section 62A.65, subdivision 5, is amended to read:

Subd. 5.

Portability and conversion of coverage.

(a) No individual health plan
may be offered, sold, issued, or with respect to children age 18 or under renewed, to a
Minnesota resident that contains a preexisting condition limitation, preexisting condition
exclusion, or exclusionary rider, unless the limitation or exclusion is permitted under this
subdivision and under chapter 62L, provided that, except for children age 18 or under,
underwriting restrictions may be retained on individual contracts that are issued without
evidence of insurability as a replacement for prior individual coverage that was sold
before May 17, 1993. The individual may be subjected to an 18-month preexisting
condition limitation, unless the individual has maintained continuous coverage as defined
in section 62L.02. The individual must not be subjected to an exclusionary rider. An
individual who has maintained continuous coverage may be subjected to a onetime
preexisting condition limitation of up to 12 months, with credit for time covered under
qualifying coverage as defined in section 62L.02, at the time that the individual first is
covered under an individual health plan by any health carrier. Credit must be given for
all qualifying coverage with respect to all preexisting conditions, regardless of whether
the conditions were preexisting with respect to any previous qualifying coverage. The
individual must not be subjected to an exclusionary rider. Thereafter, the individual must
not be subject to any preexisting condition limitation, preexisting condition exclusion,
or exclusionary rider under an individual health plan by any health carrier, except an
unexpired portion of a limitation under prior coverage, so long as the individual maintains
continuous coverage as defined in section 62L.02.

(b) A health carrier must offer an individual health plan to any individual previously
covered under a group health plan issued by that health carrier, regardless of the size
of the group, so long as the individual maintained continuous coverage as defined in
section 62L.02. If the individual has available any continuation coverage provided under
sections 62A.146; 62A.148; 62A.17, subdivisions 1 and 2; 62A.20; 62A.21; 62C.142;
62D.101; or 62D.105, or continuation coverage provided under federal law, the health
carrier need not offer coverage under this paragraph until the individual has exhausted
the continuation coverage. The offer must not be subject to underwriting, except as
permitted under this paragraph. A health plan issued under this paragraph must be a
qualified plan as defined in section 62E.02 and must not contain any preexisting condition
limitation, preexisting condition exclusion, or exclusionary rider, except for any unexpired
limitation or exclusion under the previous coverage. The individual health plan must
cover pregnancy on the same basis as any other covered illness under the individual health
plan. The offer of coverage by the health carrier must inform the individual that the
coverage, including what is covered and the health care providers from whom covered
care may be obtained, may not be the same as the individual's coverage under the group
health plan. The offer of coverage by the health carrier must also inform the individual
that the individual, if a Minnesota resident, may be eligible to obtain coverage from (i)
other private sources of health coverage, or (ii) the Minnesota Comprehensive Health
Association, without a preexisting condition limitation, and must provide the telephone
number used by that association for enrollment purposes. The initial premium rate for
the individual health plan must comply with subdivision 3. The premium rate upon
renewal must comply with subdivision 2. In no event shall the premium rate exceed 100
percent of the premium charged for comparable individual coverage by the Minnesota
Comprehensive Health Association, new text begin or 90 percent of that amount if the insured is between
the ages of 60 and 65 years, new text end and the premium rate must be less than deleted text begin that amount deleted text end new text begin those
amounts new text end if necessary to otherwise comply with this section. An individual health plan
offered under this paragraph to a person satisfies the health carrier's obligation to offer
conversion coverage under section 62E.16, with respect to that person. Coverage issued
under this paragraph must provide that it cannot be canceled or nonrenewed as a result of
the health carrier's subsequent decision to leave the individual, small employer, or other
group market. Section 72A.20, subdivision 28, applies to this paragraph.

Sec. 2. new text begin EFFECTIVE DATE.
new text end

new text begin Section 1 is effective August 1, 2007, and applies to conversion coverage issued
on or after that date.
new text end