1.1                          A bill for an act
  1.2             relating to insurance; permitting health maintenance 
  1.3             organizations to provide coverage supplemental to 
  1.4             medical savings accounts on the same basis as other 
  1.5             insurers; amending Minnesota Statutes 1996, section 
  1.6             62D.02, subdivision 8. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1996, section 62D.02, 
  1.9   subdivision 8, is amended to read: 
  1.10     Subd. 8.  "Health maintenance contract" means any contract 
  1.11  whereby a health maintenance organization agrees to provide 
  1.12  comprehensive health maintenance services to enrollees, provided 
  1.13  that the contract may contain reasonable enrollee copayment 
  1.14  provisions.  An individual or group health maintenance contract 
  1.15  may contain the copayment and deductible provisions specified in 
  1.16  this subdivision.  Copayment and deductible provisions in group 
  1.17  contracts shall not discriminate on the basis of age, sex, race, 
  1.18  length of enrollment in the plan, or economic status; and during 
  1.19  every open enrollment period in which all offered health benefit 
  1.20  plans, including those subject to the jurisdiction of the 
  1.21  commissioners of commerce or health, fully participate without 
  1.22  any underwriting restrictions, copayment and deductible 
  1.23  provisions shall not discriminate on the basis of preexisting 
  1.24  health status.  In no event shall the sum of the annual 
  1.25  copayments and deductible exceed the maximum out-of-pocket 
  1.26  expenses allowable for a number three qualified plan under 
  2.1   section 62E.06, nor shall that sum exceed $5,000 per family.  
  2.2   The annual deductible must not exceed $1,000 per person.  The 
  2.3   annual deductible must not apply to preventive health services 
  2.4   as described in Minnesota Rules, part 4685.0801, subpart 8.  
  2.5   Where sections 62D.01 to 62D.30 permit a health maintenance 
  2.6   organization to contain reasonable copayment provisions for 
  2.7   preexisting health status, these provisions may vary with 
  2.8   respect to length of enrollment in the plan.  Notwithstanding 
  2.9   any provisions of this subdivision, a health maintenance 
  2.10  organization may offer a high deductible health plan as defined 
  2.11  in section 220(c)(2) of the Internal Revenue Code, for use in 
  2.12  connection with a medical savings account as defined in section 
  2.13  220(d)(1) of the Internal Revenue Code.  Any contract may 
  2.14  provide for health care services in addition to those set forth 
  2.15  in subdivision 7. 
  2.16     Sec. 2.  [EFFECTIVE DATE.] 
  2.17     Section 1 is effective the day following final enactment.