HF 1137

as introduced - 84th Legislature (2005 - 2006) 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 2004, section 62A.65, subdivision 5.

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

Section 1.

Minnesota Statutes 2004, 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, 2005, and applies to
conversion coverage issued on or after that date.
new text end