HF 2694

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 11:32pm

A bill for an act
relating to health care; increasing the surcharge on health maintenance
organizations and making related changes; increasing managed care payment
rates; establishing the general assistance medical care account; providing credits
towards the HealthPartners' assessment for the Minnesota Comprehensive Health
Association; appropriating money; amending Minnesota Statutes 2008, sections
256.9657, subdivision 3; 256B.69, by adding a subdivision; proposing coding
for new law in Minnesota Statutes, chapter 256D.

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

Section 1.

Minnesota Statutes 2008, section 256.9657, subdivision 3, is amended to
read:

Subd. 3.

Surcharge on HMOs and community integrated service networks.

(a)
Effective October 1, 1992, each health maintenance organization with a certificate of
authority issued by the commissioner of health under chapter 62D and each community
integrated service network licensed by the commissioner under chapter 62N shall pay to
the commissioner of human services a surcharge equal to six-tenths of one percent of the
total premium revenues of the health maintenance organization or community integrated
service network as reported to the commissioner of health according to the schedule in
subdivision 4.

(b) new text begin Effective March 1, 2010, to June 30, 2011: (1) the surcharge under paragraph (a)
is increased to 4.0 percent; and (2) each county-based purchasing plan authorized under
section 256B.692 shall pay to the commissioner a surcharge equal to 3.4 percent of the
total premium revenues of the plan, as reported to the commissioner of health, according
to the payment schedule in subdivision 4. Notwithstanding section 256.9656, money
collected under this paragraph in excess of the amount collected under paragraph (a) shall
be deposited in the account established in section 256D.032.
new text end

new text begin (c) new text end For purposes of this subdivision, total premium revenue means:

(1) premium revenue recognized on a prepaid basis from individuals and groups
for provision of a specified range of health services over a defined period of time which
is normally one month, excluding premiums paid to a health maintenance organization
or community integrated service network from the Federal Employees Health Benefit
Program;

(2) premiums from Medicare wrap-around subscribers for health benefits which
supplement Medicare coverage;

(3) Medicare revenue, as a result of an arrangement between a health maintenance
organization or a community integrated service network and the Centers for Medicare
and Medicaid Services of the federal Department of Health and Human Services, for
services to a Medicare beneficiary, excluding Medicare revenue that states are prohibited
from taxing under sections 1854, 1860D-12, and 1876 of title XVIII of the federal Social
Security Act, codified as United States Code, title 42, sections 1395mm, 1395w-112, and
1395w-24, respectively, as they may be amended from time to time; and

(4) medical assistance revenue, as a result of an arrangement between a health
maintenance organization or community integrated service network and a Medicaid state
agency, for services to a medical assistance beneficiary.

If advance payments are made under clause (1) or (2) to the health maintenance
organization or community integrated service network for more than one reporting period,
the portion of the payment that has not yet been earned must be treated as a liability.

deleted text begin (c) deleted text end new text begin (d) new text end When a health maintenance organization or community integrated service
network merges or consolidates with or is acquired by another health maintenance
organization or community integrated service network, the surviving corporation or the
new corporation shall be responsible for the annual surcharge originally imposed on
each of the entities or corporations subject to the merger, consolidation, or acquisition,
regardless of whether one of the entities or corporations does not retain a certificate of
authority under chapter 62D or a license under chapter 62N.

deleted text begin (d) deleted text end new text begin (e) new text end Effective July 1 of each year, the surviving corporation's or the new
corporation's surcharge shall be based on the revenues earned in the second previous
calendar year by all of the entities or corporations subject to the merger, consolidation,
or acquisition regardless of whether one of the entities or corporations does not retain a
certificate of authority under chapter 62D or a license under chapter 62N until the total
premium revenues of the surviving corporation include the total premium revenues of all
the merged entities as reported to the commissioner of health.

deleted text begin (e) deleted text end new text begin (f) new text end When a health maintenance organization or community integrated service
network, which is subject to liability for the surcharge under this chapter, transfers,
assigns, sells, leases, or disposes of all or substantially all of its property or assets, liability
for the surcharge imposed by this chapter is imposed on the transferee, assignee, or buyer
of the health maintenance organization or community integrated service network.

deleted text begin (f) deleted text end new text begin (g) new text end In the event a health maintenance organization or community integrated
service network converts its licensure to a different type of entity subject to liability
for the surcharge under this chapter, but survives in the same or substantially similar
form, the surviving entity remains liable for the surcharge regardless of whether one of
the entities or corporations does not retain a certificate of authority under chapter 62D
or a license under chapter 62N.

deleted text begin (g) deleted text end new text begin (h) new text end The surcharge assessed to a health maintenance organization or community
integrated service network ends when the entity ceases providing services for premiums
and the cessation is not connected with a merger, consolidation, acquisition, or conversion.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2010.
new text end

Sec. 2.

Minnesota Statutes 2008, section 256B.69, is amended by adding a subdivision
to read:

new text begin Subd. 5k. new text end

new text begin Temporary rate modifications. new text end

new text begin For services rendered effective May 1,
2010, to June 30, 2011, the total payment made to managed care plans under the medical
assistance program shall be increased by 5.14 percent. This increase shall be paid from the
account established in section 256D.032.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2010.
new text end

Sec. 3.

new text begin [256D.032] GENERAL ASSISTANCE MEDICAL CARE ACCOUNT.
new text end

new text begin The general assistance medical care account is created in the special revenue fund.
Money deposited into the account is subject to appropriation by the legislature.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2010.
new text end

Sec. 4. new text begin MINNESOTA COMPREHENSIVE HEALTH ASSOCIATION
ASSESSMENT MODIFICATION; TRANSFER.
new text end

new text begin Subdivision 1. new text end

new text begin Minnesota Comprehensive Health Association assessment
modification. new text end

new text begin For the purpose of the annual assessment allocation required in Minnesota
Statutes, section 62E.11, the Minnesota Comprehensive Health Association shall credit
$....... to HealthPartners' assessment for calendar year 2010 and $....... to HealthPartners'
assessment for calendar year 2011, upon receipt by the association of the transfers
specified in subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Transfer. new text end

new text begin $....... in fiscal year 2011 and $....... in fiscal year 2012 shall
be transferred from the general assistance medical care account established in Minnesota
Statutes, section 256D.032, to the commissioner of commerce for disbursement upon
receipt to the Minnesota Comprehensive Health Association, to compensate for the loss in
the association's assessments created by the credits specified in subdivision 1.
new text end

Sec. 5. new text begin APPROPRIATION.
new text end

new text begin $....... for the period from March 1, 2010, to June 30, 2010, and $....... for fiscal
year 2011 is appropriated from the account established in Minnesota Statutes, section
256D.032, to the commissioner of human services for the managed care plan rate increase
in Minnesota Statutes, section 256B.69, subdivision 5k. The commissioner may transfer
these appropriations to the medical assistance account in the general fund and pay the rate
increases from the medical assistance account.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective March 1, 2010.
new text end