HF 1864

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to health; providing for a statewide plan for
improving health; requiring health plans to issue
coverage to all applicants and charge community rates;
developing a secure benefit set for all health plans;
creating an income tax deduction for health coverage
premiums; requiring all persons to maintain health
coverage; amending laws promoting high-quality health
care; providing for public information on health care
cost and quality; requiring reports; appropriating
money; amending Minnesota Statutes 2004, sections
145A.12, by adding subdivisions; 290.01, subdivision
19b; proposing coding for new law in Minnesota
Statutes, chapter 62Q.

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

ARTICLE 1

HEALTHIER MINNESOTANS

Section 1.

Minnesota Statutes 2004, section 145A.12, is
amended by adding a subdivision to read:

new text begin Subd. 8. new text end

new text begin Coordinated statewide health improvement action
plan. new text end

new text begin The commissioner, in consultation with the Minnesota
Health Improvement Partnership, shall develop and implement a
statewide action plan for improving the health status of
Minnesotans through strategic and coordinated action of
communities, businesses, health care professionals, health care
organizations, health plans, schools, and other public and
private entities. The plan must identify up to three of the
statewide public health outcomes as determined under subdivision
7 and provide for specific steps to be taken that will produce
measurable improvements in health status and corresponding
reductions in the incidence of disease or injury and related
health care costs. The plan must encourage and facilitate the
formation of local public-private partnerships to take action on
the statewide goals.
new text end

Sec. 2.

Minnesota Statutes 2004, section 145A.12, is
amended by adding a subdivision to read:

new text begin Subd. 9. new text end

new text begin Challenge grant fund. new text end

new text begin The commissioner shall
establish a public health challenge grant fund and program to
award grants to statewide and local health improvement
public-private partnerships to support collaborative actions
that will reduce the rate of increase in health care costs
through improvements in the health status or the prevention of
illness and injury in the population of the state or a local
community. The commissioner shall require grantees to provide
an equal match of local funding provided from public or private
sources. Each grant program must include a methodology approved
by the commissioner for measuring the impact of the grantees'
actions on health care costs incurred by public or private
health insurance plans, local public health programs, and health
care providers' uncompensated care costs. Each grant program
must include written agreements between participating public and
private entities that provide health care services or health
coverage under which the entities agree to contribute, to the
challenge grant fund, 20 percent of any savings they realize as
a result of the program. The commissioner of human services and
the commissioner of employee relations shall agree to enter into
agreements with grantees regarding the payment of the 20 percent
of savings in their health coverage programs to the challenge
grant fund.
new text end

Sec. 3. new text begin COST AND QUALITY DISCLOSURE.
new text end

new text begin The state agency commissioners serving on the governor's
Health Care Cabinet, in cooperation with organizations
representing consumers, employers, physicians and other health
professionals, hospitals, long-term care facilities, health plan
companies, quality improvement organizations, research and
education institutions, and other appropriate constituencies,
shall identify and contract with a private, nonprofit
organization to serve as a statewide source of comparative
information on health care costs and quality.
new text end

Sec. 4. new text begin APPROPRIATION.
new text end

new text begin $....... is appropriated from the health care access fund
to the commissioner of health for the challenge grant fund under
Minnesota Statutes, section 145A.12, subdivision 9, for the
fiscal year ending June 30, 2006. This appropriation shall be
repaid from repayments to the challenge grant fund by June 30,
2008.
new text end

Sec. 5. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective July 1, 2005.
new text end

ARTICLE 2

HEALTH INSURANCE REFORM

Section 1.

new text begin [62Q.166] UNIVERSAL HEALTH COVERAGE.
new text end

new text begin Subdivision 1. new text end

new text begin Requirement of coverage. new text end

new text begin (a) Effective
January 1, 2009, each Minnesota resident shall obtain and
maintain health coverage that includes at least the secure
benefit set described under section 5.
new text end

new text begin (b) A person who becomes a Minnesota resident must obtain
the coverage no later than 90 days after becoming a Minnesota
resident.
new text end

new text begin (c) A child must have the coverage at the moment of birth.
new text end

new text begin Subd. 2. new text end

new text begin Secure benefit set. new text end

new text begin (a) Every health plan
offered, issued, sold, or renewed to cover a Minnesota resident
must include the secure benefit set as described under section 5.
new text end

new text begin (b) A health plan may include coverage in addition to the
secure benefit set, provided that the additional coverages are
provided as optional coverage, for a separately stated premium.
new text end

new text begin Subd. 3. new text end

new text begin Guaranteed issue. new text end

new text begin (a) Each health plan company
shall offer, sell, issue, or renew the secure benefit set on a
guaranteed issue basis, as defined in section 62Q.18,
subdivision 1, clause (2).
new text end

new text begin (b) Optional coverages under subdivision 2, paragraph (b),
need not be provided on a guaranteed issue basis.
new text end

new text begin Subd. 4. new text end

new text begin Community rate bands. new text end

new text begin (a) The premium rate
bands for the secure benefit set must not vary based upon health
history or status, whether coverage is group or individual,
gender, geographic location, purchase of additional coverage, or
any other factor except as permitted under paragraph (b).
new text end

new text begin (b) Premium rate bands for the secure benefit set may vary
to reflect actuarially valid differences attributable to age or
to nonuse of tobacco, compliance with recommended health
screenings and preventive care, or other health-promoting
behaviors. Premium rate variations must be in accordance with
section 62L.08 and must be approved by the commissioner prior to
their use.
new text end

new text begin (c) Paragraphs (a) and (b) do not apply to optional
coverage provided as an addition to the secure benefit set.
new text end

new text begin Subd. 5. new text end

new text begin Preexisting conditions. new text end

new text begin A health plan may
exclude or limit coverage of a preexisting condition under the
secure benefit set only if the condition developed at a time
when the applicant or enrollee did not have coverage for the
secure benefit set.
new text end

Sec. 2.

Minnesota Statutes 2004, section 290.01,
subdivision 19b, is amended to read:

Subd. 19b.

Subtractions from federal taxable income.

For
individuals, estates, and trusts, there shall be subtracted from
federal taxable income:

(1) interest income on obligations of any authority,
commission, or instrumentality of the United States to the
extent includable in taxable income for federal income tax
purposes but exempt from state income tax under the laws of the
United States;

(2) if included in federal taxable income, the amount of
any overpayment of income tax to Minnesota or to any other
state, for any previous taxable year, whether the amount is
received as a refund or as a credit to another taxable year's
income tax liability;

(3) the amount paid to others, less the amount used to
claim the credit allowed under section 290.0674, not to exceed
$1,625 for each qualifying child in grades kindergarten to 6 and
$2,500 for each qualifying child in grades 7 to 12, for tuition,
textbooks, and transportation of each qualifying child in
attending an elementary or secondary school situated in
Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin,
wherein a resident of this state may legally fulfill the state's
compulsory attendance laws, which is not operated for profit,
and which adheres to the provisions of the Civil Rights Act of
1964 and chapter 363A. For the purposes of this clause,
"tuition" includes fees or tuition as defined in section
290.0674, subdivision 1, clause (1). As used in this clause,
"textbooks" includes books and other instructional materials and
equipment purchased or leased for use in elementary and
secondary schools in teaching only those subjects legally and
commonly taught in public elementary and secondary schools in
this state. Equipment expenses qualifying for deduction
includes expenses as defined and limited in section 290.0674,
subdivision 1, clause (3). "Textbooks" does not include
instructional books and materials used in the teaching of
religious tenets, doctrines, or worship, the purpose of which is
to instill such tenets, doctrines, or worship, nor does it
include books or materials for, or transportation to,
extracurricular activities including sporting events, musical or
dramatic events, speech activities, driver's education, or
similar programs. For purposes of the subtraction provided by
this clause, "qualifying child" has the meaning given in section
32(c)(3) of the Internal Revenue Code;

(4) income as provided under section 290.0802;

(5) to the extent included in federal adjusted gross
income, income realized on disposition of property exempt from
tax under section 290.491;

(6) to the extent included in federal taxable income,
postservice benefits for youth community service under section
124D.42 for volunteer service under United States Code, title
42, sections 12601 to 12604;

(7) to the extent not deducted in determining federal
taxable income by an individual who does not itemize deductions
for federal income tax purposes for the taxable year, an amount
equal to 50 percent of the excess of charitable contributions
allowable as a deduction for the taxable year under section
170(a) of the Internal Revenue Code over $500;

(8) for taxable years beginning before January 1, 2008, the
amount of the federal small ethanol producer credit allowed
under section 40(a)(3) of the Internal Revenue Code which is
included in gross income under section 87 of the Internal
Revenue Code;

(9) for individuals who are allowed a federal foreign tax
credit for taxes that do not qualify for a credit under section
290.06, subdivision 22, an amount equal to the carryover of
subnational foreign taxes for the taxable year, but not to
exceed the total subnational foreign taxes reported in claiming
the foreign tax credit. For purposes of this clause, "federal
foreign tax credit" means the credit allowed under section 27 of
the Internal Revenue Code, and "carryover of subnational foreign
taxes" equals the carryover allowed under section 904(c) of the
Internal Revenue Code minus national level foreign taxes to the
extent they exceed the federal foreign tax credit;

(10) in each of the five tax years immediately following
the tax year in which an addition is required under subdivision
19a, clause (7), an amount equal to one-fifth of the delayed
depreciation. For purposes of this clause, "delayed
depreciation" means the amount of the addition made by the
taxpayer under subdivision 19a, clause (7), minus the positive
value of any net operating loss under section 172 of the
Internal Revenue Code generated for the tax year of the
addition. The resulting delayed depreciation cannot be less
than zero; deleted text begin and
deleted text end

(11) job opportunity building zone income as provided under
section 469.316 new text begin ; and
new text end

new text begin (12) to the extent not deducted in determining federal
taxable income, amounts paid for health coverage described as
the secure benefit set under section 5 new text end .

Sec. 3. new text begin DESIGN OF HEALTH REINSURANCE POOL.
new text end

new text begin The commissioner of commerce shall, no later than November
15, 2005, present to the legislature a plan for reactivating the
reinsurance pool established under Minnesota Statutes, sections
62L.13 to 62L.23, and converting it to a reinsurance pool for
high-cost cases in the entire individual and group market in
this state.
new text end

Sec. 4. new text begin ENFORCEMENT OF COVERAGE REQUIREMENT.
new text end

new text begin The commissioner of health shall prepare and submit to the
legislature by December 15, 2005, a report with recommendations
and proposed legislation for enforcing the requirement that all
individuals maintain continuous health coverage under Minnesota
Statutes, section 62Q.166, subdivision 1. In preparing the
report, the commissioner shall consider whether to require
evidence of coverage for applying for a driver's license,
registering for school, or filing state income tax returns.
new text end

Sec. 5. new text begin SECURE BENEFIT SET DESIGN.
new text end

new text begin The commissioners of health, human services, labor and
industry, employee relations, corrections, commerce, and
administration and the Minnesota Comprehensive Health
Association board of directors, in consultation with a panel of
health care policy experts, shall define a secure benefit set
that includes coverage for preventive health services, as
specified in preventive services guidelines for children and
adults developed by the Institute for Clinical Systems
Improvement, prescription drug coverage, and catastrophic health
coverage.
new text end

Sec. 6. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective January 1, 2007. Sections
3, 4, and 5 are effective July 1, 2005.
new text end