HF 861

as introduced - 89th Legislature (2015 - 2016) Posted on 02/12/2015 02:34pm

A bill for an act
relating to health; removing the term "nonprofit" from certain provisions;
amending Minnesota Statutes 2014, sections 62C.01; 62C.02, subdivision 6;
62D.02, subdivision 4.

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

Section 1.

Minnesota Statutes 2014, section 62C.01, is amended to read:

62C.01 deleted text begin NONPROFIT deleted text end HEALTH SERVICE PLAN CORPORATIONS ACT.

Subdivision 1.

Citation.

Sections 62C.01 to 62C.23 may be cited as the " deleted text begin Nonprofit deleted text end
Health Service Plan Corporations Act."

Subd. 2.

Purpose.

It is the purpose and intent of Laws 1971, chapter 568 to promote
a wider, more economical and timely availability of hospital, medical-surgical, dental,
and other health services for the people of Minnesota, through deleted text begin nonprofit, deleted text end prepaid health
service plans, and thereby advance public health and the art and science of medical and
health care within the state, while reasonably regulating the formation, continuation,
operation, and termination of such service plans by establishment and enforcement of
reasonable and practical standards of administration, investments, surplus new text begin , new text end and reserves.

Subd. 3.

Scope.

Every foreign or domestic deleted text begin nonprofit deleted text end corporation organized for the
purpose of establishing or operating a health service plan in Minnesota whereby health
services are provided to subscribers to the plan under a contract with the corporation
shall be subject to and governed by Laws 1971, chapter 568, and shall not be subject to
the laws of this state relating to insurance, except the gross premiums tax provisions
contained in chapter 297I and as otherwise specifically provided. Laws 1971, chapter 568
shall apply to all health service plan corporations incorporated after August 1, 1971, and
to all existing health service plan corporations, except as otherwise provided. Nothing in
sections 62C.01 to 62C.23 shall apply to prepaid group practice plans. A prepaid group
practice plan is any plan or arrangement other than a service plan, whereby health services
are rendered to certain patients by providers who devote their professional effort primarily
to members or patients of the plan, and whereby the recipients of health services pay for
the services on a regular, periodic basis, not on a fee for service basis.

Sec. 2.

Minnesota Statutes 2014, section 62C.02, subdivision 6, is amended to read:

Subd. 6.

Service plan corporation.

"Service plan corporation" means a foreign
or domestic deleted text begin nonprofit deleted text end corporation which contracts for health service or payment therefor
for subscribers pursuant to a service plan, in exchange for periodic prepayments by or
on behalf of subscribers. An "existing corporation" means a service plan association or
corporation legally in existence on August 1, 1971, and authorized to do business in this
state on that date.

Sec. 3.

Minnesota Statutes 2014, section 62D.02, subdivision 4, is amended to read:

Subd. 4.

Health maintenance organization.

(a) "Health maintenance organization"
means a deleted text begin nonprofit deleted text end new text begin domestic or foreign new text end corporation deleted text begin organized under chapter 317A deleted text end , or a
local governmental unit as defined in subdivision 11, controlled and operated as provided
in sections 62D.01 to 62D.30, which provides, either directly or through arrangements
with providers or other persons, comprehensive health maintenance services, or arranges
for the provision of these services, to enrollees on the basis of a fixed prepaid sum without
regard to the frequency or extent of services furnished to any particular enrollee.

(b) [Expired]