HF 2832

2nd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to health; modifying certain private sector health coverages; requiring an
annual medical malpractice insurance report; authorizing service cooperatives
to provide a health care program for certain nursing homes and boarding care
homes; amending Minnesota Statutes 2004, sections 62D.095, subdivisions 3, 4,
by adding a subdivision; 123A.21, subdivision 7; proposing coding for new law
in Minnesota Statutes, chapter 62Q.

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

ARTICLE 1

PRIVATE SECTOR HEALTH COVERAGE PROVISIONS

Section 1.

Minnesota Statutes 2004, section 62D.095, subdivision 3, is amended to
read:

Subd. 3.

Deductibles.

deleted text begin (a) deleted text end A health maintenance contract issued by a health
maintenance organization deleted text begin that is assessed less than three percent of the total annual amount
assessed by the Minnesota comprehensive health association deleted text end may impose deductibles not
to exceed deleted text begin $3,000 deleted text end new text begin $5,000 new text end per person, per year and deleted text begin $6,000 deleted text end new text begin $10,000 new text end per family, per year. deleted text begin For
purposes of the percentage calculation, a health maintenance organization's assessments
include those of its affiliates.
deleted text end

deleted text begin (b) All other health maintenance contracts may impose deductibles not to exceed
$2,250 per person, per year and $4,500 per family, per year.
deleted text end

new text begin new text end

Sec. 2.

Minnesota Statutes 2004, section 62D.095, subdivision 4, is amended to read:

Subd. 4.

Annual out-of-pocket maximums.

deleted text begin (a) deleted text end A health maintenance contract
issued by a health maintenance organization deleted text begin that is assessed less than three percent of the
total annual amount assessed by the Minnesota comprehensive health association deleted text end must
include a limitation not to exceed deleted text begin $4,500 deleted text end new text begin $5,000 new text end per person and deleted text begin $7,500 deleted text end new text begin $10,000 new text end per
family on total annual out-of-pocket enrollee cost-sharing expenses. deleted text begin For purposes of the
percentage calculation, a health maintenance organization's assessments include those
of its affiliates.
deleted text end

deleted text begin (b) All other health maintenance contracts must include a limitation not to
exceed $3,000 per person and $6,000 per family on total annual out-of-pocket enrollee
cost-sharing expenses.
deleted text end

Sec. 3.

Minnesota Statutes 2004, section 62D.095, is amended by adding a subdivision
to read:

new text begin Subd. 5a. new text end

new text begin Lifetime maximum benefit. new text end

new text begin (a) A health maintenance contract issued
by a health maintenance organization may impose a lifetime maximum benefit no less
than $3,000,000. At no time shall a health maintenance organization impose a lifetime
maximum lower than the required lifetime maximum of the comprehensive health
insurance plan under section 62E.12.
new text end

new text begin (b) The comprehensive health insurance plan is available under section 62E.14,
subdivision 4c, paragraph (a), to those meeting the lifetime maximum benefit, without
providing evidence of rejection.
new text end

Sec. 4.

new text begin [62Q.645] DISTRIBUTION OF INFORMATION; ADMINISTRATIVE
EFFICIENCY AND COVERAGE OPTIONS.
new text end

new text begin (a) The commissioner may use reports submitted by health plan companies, service
cooperatives, and the public employee insurance program created in section 43A.316
to compile entity specific administrative efficiency reports; may make these reports
available on state agency Web sites, including minnesotahealthinfo.com; and may include
information on:
new text end

new text begin (1) number of covered lives;
new text end

new text begin (2) covered services;
new text end

new text begin (3) geographic availability;
new text end

new text begin (4) whom to contact to obtain current premium rates;
new text end

new text begin (5) administrative costs, using the definition of administrative costs developed under
section 62J.38;
new text end

new text begin (6) Internet links to information on the health plan, if available; and
new text end

new text begin (7) any other information about the health plan identified by the commissioner
as being useful for employers, consumers, providers, and others in evaluating health
plan options.
new text end

new text begin (b) This section does not apply to a health plan company unless its annual Minnesota
premiums exceed $50,000,000 based on the most recent assessment base of the Minnesota
Comprehensive Health Association. For purposes of this determination, the premiums of a
health plan company include those of its affiliates.
new text end

Sec. 5. new text begin MEDICAL MALPRACTICE INSURANCE REPORT.
new text end

new text begin (a) The commissioner of commerce shall provide to the legislature annually a brief
written report on the status of the market for medical malpractice insurance in Minnesota.
The report must summarize, interpret, explain, and analyze information on that subject
available to the commissioner, through annual statements filed by insurance companies,
information obtained under paragraph (c), and other sources.
new text end

new text begin (b) The annual report must consider, to the extent possible using definitions
developed by the commissioner, Minnesota specific data on market shares; premiums
received; amounts paid to settle claims that were not litigated, claims that were settled
after litigation began, and claims that were litigated to court judgment; amounts spent
on processing, investigation, litigation, and otherwise handling claims; other sales and
administrative costs; and the loss ratios of the insurers.
new text end

new text begin (c) Each insurance company that provides medical malpractice insurance in this state
shall, no later than June 1 each year, file with the commissioner of commerce, on a form
prescribed by the commissioner and using definitions developed by the commissioner,
the Minnesota specific data referenced in paragraph (b), other than market share, for the
previous calendar year for that insurance company, shown separately for various categories
of coverages including, if possible, hospitals, medical clinics, nursing homes, physicians
who provide emergency medical care, obstetrician gynecologists, and ambulance services.
An insurance company need not comply with this paragraph if its direct premium written
in the state for the previous calendar year is less than $2,000,000.
new text end

ARTICLE 2

SERVICE COOPERATIVES

Section 1.

Minnesota Statutes 2004, section 123A.21, subdivision 7, is amended to
read:

Subd. 7.

Educational programs and services.

new text begin (a) new text end The board of directors of each
SC shall submit annually a plan to the members. The plan shall identify the programs and
services which are suggested for implementation by the SC during the following year and
shall contain components of long-range planning determined by the SC. These programs
and services may include, but are not limited to, the following areas:

(1) administrative services;

(2) curriculum development;

(3) data processing;

(4) distance learning and other telecommunication services;

(5) evaluation and research;

(6) staff development;

(7) media and technology centers;

(8) publication and dissemination of materials;

(9) pupil personnel services;

(10) planning;

(11) secondary, postsecondary, community, adult, and adult vocational education;

(12) teaching and learning services, including services for students with special
talents and special needs;

(13) employee personnel services;

(14) vocational rehabilitation;

(15) health, diagnostic, and child development services and centers;

(16) leadership or direction in early childhood and family education;

(17) community services;

(18) shared time programs;

(19) fiscal services and risk management programs;

(20) technology planning, training, and support services;

(21) health and safety services;

(22) student academic challenges; and

(23) cooperative purchasing services.

new text begin (b) A health coverage program provided by one or more SCs:
new text end

new text begin (1) may provide coverage to nursing homes licensed under chapter 144A and
boarding care homes licensed under sections 144.50 to 144.56 and certified for
participation in the medical assistance program, located in this state;
new text end

new text begin (2) must rebid contracts for insurance and third-party administration at least every
four years. The contracts may be regional or statewide in the discretion of the SC;
new text end

new text begin (3) must comply with section 72A.20, subdivision 26, notwithstanding section
13.203, and must also provide that same information to exclusive representatives of the
employees upon request. A service cooperative shall not terminate coverage, exclude
an employer from future coverage, or otherwise penalize an employer for seeking bids
from other sources of health coverage; and
new text end

new text begin (4) may determine premiums for its health coverage individually for specific
employers or may determine them on a pooled or other basis established by the SC.
new text end

Sec. 2. new text begin EFFECTIVE DATE.
new text end

new text begin Section 1 is effective the day following final enactment.
new text end