HF 2697

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to health; increasing the maximum financial 
  1.3             reserves permitted for health maintenance 
  1.4             organizations; removing misleading related language; 
  1.5             amending Minnesota Statutes 1996, section 62D.042, 
  1.6             subdivision 2; repealing Minnesota Statutes 1997 
  1.7             Supplement, section 62D.042, subdivision 3. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1996, section 62D.042, 
  1.10  subdivision 2, is amended to read: 
  1.11     Subd. 2.  [BEGINNING ORGANIZATIONS NET WORTH REQUIREMENTS.] 
  1.12  (a) Beginning organizations shall maintain net worth of at least 
  1.13  8-1/3 percent of the sum of all expenses expected to be incurred 
  1.14  in the 12 months following the date the certificate of authority 
  1.15  is granted, or $1,500,000, whichever is greater. 
  1.16     (b) After the first full calendar year of operation, 
  1.17  organizations shall maintain net worth of at least 8-1/3 percent 
  1.18  and at most 16-2/3 25 percent of the sum of all expenses 
  1.19  incurred during the most recent calendar year, but in no case 
  1.20  shall net worth fall below $1,000,000. 
  1.21     (c) Notwithstanding paragraphs (a) and (b), any health 
  1.22  maintenance organization owned by a political subdivision of 
  1.23  this state, which has a higher than average percentage of 
  1.24  enrollees who are enrolled in medical assistance or general 
  1.25  assistance medical care, may exceed the maximum net worth limits 
  1.26  provided in paragraphs (a) and (b), with the advance approval of 
  2.1   the commissioner. 
  2.2      Sec. 2.  [REPEALER.] 
  2.3      Minnesota Statutes 1997 Supplement, section 62D.042, 
  2.4   subdivision 3, is repealed. 
  2.5      Sec. 3.  [EFFECTIVE DATE.] 
  2.6      Section 1 is effective January 1, 1999.  Section 2 is 
  2.7   effective the day following final enactment.