HF 588

2nd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to insurance; permitting flexible benefits
plans for small employer group health coverage;
proposing coding for new law in Minnesota Statutes,
chapter 62L.

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

Section 1.

new text begin [62L.056] SMALL EMPLOYER FLEXIBLE BENEFITS
PLANS.
new text end

new text begin (a) Notwithstanding any provision of this chapter, chapter
363A, or any other law to the contrary, a health carrier may
offer, sell, issue, and renew a health benefit plan that is a
flexible benefits plan under this section to a small employer if
the following requirements are satisfied:
new text end

new text begin (1) the health benefit plan must be offered in compliance
with this chapter, except as otherwise permitted in this
section;
new text end

new text begin (2) the health benefit plan to be offered must be designed
to enable employers and covered persons to better manage costs
and coverage options through the use of co-pays, deductibles,
and other cost-sharing arrangements;
new text end

new text begin (3) the health benefit plan must be issued and administered
in compliance with sections 62E.141; 62L.03, subdivision 6; and
62L.12, subdivisions 3 and 4, relating to prohibitions against
enrolling in the Minnesota Comprehensive Health Association
persons eligible for employer group coverage;
new text end

new text begin (4) loss-ratio requirements do not apply to a health
benefit plan issued under this section;
new text end

new text begin (5) the health benefit plan may modify or exclude any or
all coverages of benefits that would otherwise be required by
law, except for maternity benefits and other benefits required
under federal law;
new text end

new text begin (6) each health benefit plan must be approved by the
commissioner of commerce, but the commissioner may not
disapprove a plan on the grounds of a modification or exclusion
permitted under clause (5); and
new text end

new text begin (7) prior to sale of the health benefit plan, the small
employer must be given a written list of the coverages otherwise
required by law that are modified or excluded in the health
benefit plan. The list must include a description of each
coverage in the list and indicate whether the coverage is
modified or excluded. If a coverage is modified, the list must
describe the modification. The list may, but need not, also
list any or all coverages otherwise required by law that are
included in the health benefit plan and indicate that they are
included. The insurer must require that a copy of this written
list be provided, prior to the effective date of the health
benefit plan, to each employee who is eligible for health
coverage under the employer's plan.
new text end

new text begin (b) The definitions in section 62L.02 apply to this section
as modified by this section.
new text end

new text begin (c) An employer may provide a health benefit plan permitted
under this section to its employees, the employees' dependents,
and other persons eligible for coverage under the employer's
plan, notwithstanding chapter 363A or any other law to the
contrary.
new text end

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

new text begin Section 1 is effective the day following final enactment.
new text end