1.1                          A bill for an act 
  1.2             relating to insurance; adjusting no-fault automobile 
  1.3             insurance medical, death, and disability compensation; 
  1.4             amending Minnesota Statutes 2002, section 65B.44, 
  1.5             subdivisions 1, 3, 4. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 65B.44, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [INCLUSIONS.] (a) Basic economic loss 
  1.10  benefits shall provide reimbursement for all loss suffered 
  1.11  through injury arising out of the maintenance or use of a motor 
  1.12  vehicle, subject to any applicable deductibles, exclusions, 
  1.13  disqualifications, and other conditions, and shall provide a 
  1.14  minimum of $40,000 $45,000 for loss arising out of the injury of 
  1.15  any one person, consisting of: 
  1.16     (1) $20,000 for medical expense loss arising out of injury 
  1.17  to any one person; and 
  1.18     (2) a total of $20,000 for income loss, replacement 
  1.19  services loss, funeral expense loss, survivor's economic loss, 
  1.20  and survivor's replacement services loss arising out of the 
  1.21  injury to any one person; and 
  1.22     (3) an additional $5,000 in excess of the coverage provided 
  1.23  in clause (1), for medical expense loss that constitutes trauma 
  1.24  services, as defined in paragraph (d). 
  1.25     (b) Notwithstanding any other law to the contrary, a person 
  2.1   entitled to basic economic loss benefits under this chapter is 
  2.2   entitled to the full medical expense benefits set forth in 
  2.3   subdivision 2, and may not receive medical expense benefits that 
  2.4   are in any way less than those provided for in subdivision 2, or 
  2.5   that involve any preestablished limitations on the benefits.  
  2.6   Medical expenses must be reasonable and must be for necessary 
  2.7   medical care as provided in subdivision 2.  This paragraph shall 
  2.8   not be deemed to alter the obligations of an insured or the 
  2.9   rights of a reparation obligor as set forth in section 
  2.10  65B.56.  This paragraph does not apply to medical expense loss 
  2.11  that is subject to paragraph (e). 
  2.12     (c) No reparation obligor or health plan company as defined 
  2.13  in section 62Q.01, subdivision 4, may enter into or renew any 
  2.14  contract that provides, or has the effect of providing, managed 
  2.15  care services to no-fault claimants.  For the purposes of this 
  2.16  section, "managed care services" is defined as any program of 
  2.17  medical services that uses health care providers managed, owned, 
  2.18  employed by, or under contract with a health plan company.  
  2.19     (d) For purposes of this section, "trauma services" means 
  2.20  diagnosis or treatment provided in a hospital emergency 
  2.21  department that is immediately necessary to respond to an 
  2.22  imminent threat of death or of permanent loss of bodily function.
  2.23     (e) Medical expense loss for diagnosis and treatment of a 
  2.24  soft tissue injury is covered only if provided in compliance 
  2.25  with the codes, treatment standards, and fee schedules provided 
  2.26  in Minnesota Rules, chapter 5221.  For purposes of this 
  2.27  paragraph, "soft tissue injury" means an injury to the soft 
  2.28  tissues, as opposed to the skeletal tissues or soft organs. 
  2.29     Sec. 2.  Minnesota Statutes 2002, section 65B.44, 
  2.30  subdivision 3, is amended to read: 
  2.31     Subd. 3.  [DISABILITY AND INCOME LOSS BENEFITS.] Disability 
  2.32  and income loss benefits shall provide compensation for 85 
  2.33  percent of the injured person's loss of present and future gross 
  2.34  income from inability to work proximately caused by the nonfatal 
  2.35  injury subject to a maximum of $250 $400 per week.  Loss of 
  2.36  income includes the costs incurred by a self-employed person to 
  3.1   hire substitute employees to perform tasks which are necessary 
  3.2   to maintain the income of the injured person, which are normally 
  3.3   performed by the injured person, and which cannot be performed 
  3.4   because of the injury.  
  3.5      If the injured person is unemployed at the time of injury 
  3.6   and is receiving or is eligible to receive unemployment benefits 
  3.7   under chapter 268, but the injured person loses eligibility for 
  3.8   those benefits because of inability to work caused by the 
  3.9   injury, disability and income loss benefits shall provide 
  3.10  compensation for the lost benefits in an amount equal to the 
  3.11  unemployment benefits which otherwise would have been payable, 
  3.12  subject to a maximum of $250 $400 per week.  
  3.13     Compensation under this subdivision shall be reduced by any 
  3.14  income from substitute work actually performed by the injured 
  3.15  person or by income the injured person would have earned in 
  3.16  available appropriate substitute work which the injured person 
  3.17  was capable of performing but unreasonably failed to undertake. 
  3.18     For the purposes of this section "inability to work" means 
  3.19  disability which prevents the injured person from engaging in 
  3.20  any substantial gainful occupation or employment on a regular 
  3.21  basis, for wage or profit, for which the injured person is or 
  3.22  may by training become reasonably qualified.  If the injured 
  3.23  person returns to employment and is unable by reason of the 
  3.24  injury to work continuously, compensation for lost income shall 
  3.25  be reduced by the income received while the injured person is 
  3.26  actually able to work.  The weekly maximums may not be prorated 
  3.27  to arrive at a daily maximum, even if the injured person does 
  3.28  not incur loss of income for a full week.  
  3.29     For the purposes of this section, an injured person who is 
  3.30  "unable by reason of the injury to work continuously" includes, 
  3.31  but is not limited to, a person who misses time from work, 
  3.32  including reasonable travel time, and loses income, vacation, or 
  3.33  sick leave benefits, to obtain medical treatment for an injury 
  3.34  arising out of the maintenance or use of a motor vehicle. 
  3.35     Sec. 3.  Minnesota Statutes 2002, section 65B.44, 
  3.36  subdivision 4, is amended to read: 
  4.1      Subd. 4.  [FUNERAL AND BURIAL EXPENSES.] Funeral and burial 
  4.2   benefits shall be reasonable expenses not in excess of 
  4.3   $2,000 $5,000, including expenses for cremation or delivery 
  4.4   under the Uniform Anatomical Gift Act (1987), sections 525.921 
  4.5   to 525.9224. 
  4.6      Sec. 4.  [EFFECTIVE DATE.] 
  4.7      (a) Section 1, except for the amendment to paragraph (a), 
  4.8   is effective January 1, 2005, and applies to medical expenses 
  4.9   incurred on or after that date.  
  4.10     (b) Sections 1, paragraph (a), 2, and 3 are effective 
  4.11  January 1, 2005, and apply to coverage issued or renewed on or 
  4.12  after that date.