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Minnesota Legislature

Office of the Revisor of Statutes

HF 1705

as introduced - 91st Legislature (2019 - 2020) Posted on 02/25/2019 02:51pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/25/2019

Current Version - as introduced

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A bill for an act
relating to health insurance; requesting the legislative auditor to study and report
on disparities in certain health insurance rates; appropriating money.

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

Section 1. new text beginSTUDY AND REPORT ON DISPARITIES BETWEEN GEOGRAPHIC
RATING AREAS IN INDIVIDUAL AND SMALL GROUP MARKET HEALTH
INSURANCE RATES.
new text end

new text begin Subdivision 1. new text end

new text begin Study and recommendations. new text end

new text begin (a) As permitted by the availability of
resources, the legislative auditor is requested to study disparities between Minnesota's nine
geographic rating areas in individual and small group market health insurance rates and
recommend ways to reduce or eliminate rate disparities between the geographic rating areas
and provide for stability of the individual and small group health insurance markets in the
state. In the study, if conducted, the legislative auditor shall:
new text end

new text begin (1) identify the factors that cause higher individual and small group market health
insurance rates in certain geographic rating areas, and determine the extent to which each
identified factor contributes to the higher rates;
new text end

new text begin (2) identify the impact of referral centers on individual and small group market health
insurance rates in southeastern Minnesota, and identify ways to reduce the rate disparity
between southeastern Minnesota and the metropolitan area, taking into consideration the
patterns of referral center usage by patients in those regions;
new text end

new text begin (3) determine the extent to which individuals and small employers located in a geographic
rating area with higher health insurance rates than surrounding geographic rating areas have
obtained health insurance in a lower-cost geographic rating area, identify the strategies that
individuals and small employers use to obtain health insurance in a lower-cost geographic
rating area, and measure the effects of this practice on the rates of the individuals and small
employers remaining in the geographic rating area with higher health insurance rates; and
new text end

new text begin (4) develop proposals to redraw the boundaries of Minnesota's geographic rating areas,
and estimate the effect each proposal would have on rates in each of the proposed rating
areas. The legislative auditor shall examine at least three options for redrawing the boundaries
of Minnesota's geographic rating areas, at least one of which must reduce the number of
geographic rating areas. All options for redrawing Minnesota's geographic rating areas
considered by the legislative auditor must be designed:
new text end

new text begin (i) with the purposes of reducing or eliminating rate disparities between geographic
rating areas and providing for stability of the individual and small group health insurance
markets in the state;
new text end

new text begin (ii) with consideration of the composition of existing provider networks and referral
patterns in regions of the state; and
new text end

new text begin (iii) in compliance with the requirements for geographic rating areas in Code of Federal
Regulations, title 45, section 147.102(b), and other applicable federal law and guidance.
new text end

new text begin (b) Health carriers that cover Minnesota residents, health systems that provide care to
Minnesota residents, and the commissioners of health and commerce shall cooperate with
any requests for information from the legislative auditor that the legislative auditor determines
necessary to conduct the study. Data submitted by health carriers to the legislative auditor
shall be limited to data on geographic rating areas that health carriers submitted to the
commissioner of commerce for the 2014 rate and form filings for the individual and small
group markets. The legislative auditor may disclose data submitted by health carriers only
in aggregate form. Nothing in this section allows the release of private data on individuals
or nonpublic data, as those terms are defined in Minnesota Statutes, section 13.02.
new text end

new text begin (c) The legislative auditor may recommend one or more proposals for redrawing
Minnesota's geographic rating areas if the legislative auditor determines that the proposal
would reduce or eliminate individual and small group market health insurance rate disparities
between the geographic rating areas and provide for stability of the individual and small
group health insurance markets in the state.
new text end

new text begin Subd. 2. new text end

new text begin Contract. new text end

new text begin The legislative auditor may contract with another entity for technical
assistance in conducting the study and developing recommendations according to subdivision
1.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin The legislative auditor is requested to complete the study and
recommendations by January 1, 2020, and to submit a report on the study and
recommendations by that date to the chairs and ranking minority members of the legislative
committees with jurisdiction over health care and health insurance.
new text end

Sec. 2. new text beginAPPROPRIATION; STUDY AND REPORT ON DISPARITIES BETWEEN
GEOGRAPHIC RATING AREAS IN INDIVIDUAL AND SMALL GROUP MARKET
HEALTH INSURANCE RATES.
new text end

new text begin $....... in fiscal year 2020 is appropriated from the general fund to the Office of the
Legislative Auditor for the legislative auditor to study and report on disparities between
geographic rating areas in individual and small group market health insurance rates under
section 1.
new text end