HF 3073

Conference Committee Report - 88th Legislature (2013 - 2014) Posted on 05/15/2014 06:02pm

1.1CONFERENCE COMMITTEE REPORT ON H. F. No. 3073

1.2A bill for an act

1.3relating to insurance; modifying certain regulations to reduce the incidence of
1.4insurance fraud; regulating no-fault auto benefits; regulating certain property
1.5and casualty coverages; limiting reimbursement for certain prescription drugs;
1.6regulating batch billing; modifying certain economic benefits under chapter
1.765B; establishing a task force on motor vehicle insurance coverage verification;
1.8amending Minnesota Statutes 2012, sections 13.7191, subdivision 16; 60A.952,
1.9subdivision 3; 65B.44, subdivisions 2, 3, 4, 6, by adding a subdivision; 65B.525,
1.10by adding a subdivision; 65B.54, subdivision 2; 72A.502, subdivision 2; 604.18,
1.11subdivision 4; proposing coding for new law in Minnesota Statutes, chapters
1.1260A; 65B; repealing Minnesota Statutes 2012, section 72A.327.
1.13May 15, 2014
1.14The Honorable Paul Thissen
1.15Speaker of the House of Representatives
1.16The Honorable Sandra L. Pappas
1.17President of the Senate
1.18We, the undersigned conferees for H. F. No. 3073 report that we have agreed upon
1.19the items in dispute and recommend as follows:
1.20That the Senate recede from its amendments and that H. F. No. 3073 be further
1.21amended as follows:
1.22Delete everything after the enacting clause and insert:

1.23    "Section 1. Minnesota Statutes 2012, section 13.7191, subdivision 16, is amended to
1.24read:
1.25    Subd. 16. Regulation of trade practices; insurance contract data. (a) Insurance
1.26contract data. Certain insurance contract data held by the commissioner of commerce are
1.27classified under section 72A.20, subdivision 15.
1.28(b) Health claims appeals. Documents that are part of an appeal from denial of
1.29health care coverage for experimental treatment are classified under section 72A.327.

1.30    Sec. 2. Minnesota Statutes 2012, section 60A.952, subdivision 3, is amended to read:
2.1    Subd. 3. Immunity from liability. If insurers, insurance support organizations
2.2as defined in section 72A.491, subdivision 12, agents acting on the insurers' behalf, or
2.3authorized persons release information in good faith under this section, whether orally
2.4or in writing, they are immune from any liability, civil or criminal, for the release or
2.5reporting of the information.

2.6    Sec. 3. Minnesota Statutes 2012, section 65B.44, subdivision 2, is amended to read:
2.7    Subd. 2. Medical expense benefits. (a) Medical expense benefits shall reimburse
2.8all reasonable expenses for necessary:
2.9(1) medical, surgical, x-ray, optical, dental, chiropractic, and rehabilitative services,
2.10including prosthetic devices;
2.11(2) prescription drugs, provided that:
2.12(i) prescription drugs filled and dispensed outside of a licensed pharmacy shall be
2.13billed at the average wholesale price (AWP), or its equivalent, for that drug on that date
2.14as published in Medispan, Redbook, or Gold Standard Drug Database, as identified by
2.15its National Drug Code, plus a dispensing fee of $4.18;
2.16(ii) if a prescription drug has been repackaged, the average wholesale price used
2.17to determine the maximum reimbursement shall be the average wholesale price for
2.18the underlying drug product, as identified by its National Drug Code from the original
2.19labeler; and
2.20(iii) compound drugs shall be billed by listing each drug and its National Drug Code
2.21number included in the compound and calculating the charge for each drug separately.
2.22Reimbursement shall be based on the sum of the fee for each ingredient for which
2.23there is an assigned National Drug Code number plus a single dispensing fee of $4.18.
2.24Compound drugs shall not be dispensed without first obtaining preauthorization from the
2.25reparation obligor;
2.26(3) ambulance and all other transportation expenses incurred in traveling to receive
2.27other covered medical expense benefits;
2.28(4) sign interpreting and language translation services, other than such services
2.29provided by a family member of the patient, related to the receipt of medical, surgical,
2.30x-ray, optical, dental, chiropractic, hospital, extended care, nursing, and rehabilitative
2.31services; and
2.32(5) hospital, extended care, and nursing services.
2.33(b) Hospital room and board benefits may be limited, except for intensive care
2.34facilities, to the regular daily semiprivate room rates customarily charged by the institution
2.35in which the recipient of benefits is confined.
3.1(c) Such benefits shall also include necessary remedial treatment and services
3.2recognized and permitted under the laws of this state for an injured person who relies
3.3upon spiritual means through prayer alone for healing in accordance with that person's
3.4religious beliefs.
3.5(d) Medical expense loss includes medical expenses accrued prior to the death of a
3.6person notwithstanding the fact that benefits are paid or payable to the decedent's survivors.
3.7(e) Medical expense benefits for rehabilitative services shall be subject to the
3.8provisions of section 65B.45.

3.9    Sec. 4. Minnesota Statutes 2012, section 65B.44, subdivision 3, is amended to read:
3.10    Subd. 3. Disability and income loss benefits. (a) Disability and income loss
3.11benefits shall provide compensation for 85 percent of the injured person's loss of present
3.12and future gross income from inability to work proximately caused by the nonfatal
3.13injury subject to a maximum of $250 $500 per week. Loss of income includes the costs
3.14incurred by a self-employed person to hire substitute employees to perform tasks which
3.15are necessary to maintain the income of the injured person, which are normally performed
3.16by the injured person, and which cannot be performed because of the injury.
3.17(b) If the injured person is unemployed at the time of injury and is receiving or is
3.18eligible to receive unemployment benefits under chapter 268, but the injured person loses
3.19eligibility for those benefits because of inability to work caused by the injury, disability
3.20and income loss benefits shall provide compensation for the lost benefits in an amount
3.21equal to the unemployment benefits which otherwise would have been payable, subject to
3.22a maximum of $250 $500 per week.
3.23(c) Compensation under this subdivision shall be reduced by any income from
3.24substitute work actually performed by the injured person or by income the injured person
3.25would have earned in available appropriate substitute work which the injured person was
3.26capable of performing but unreasonably failed to undertake.
3.27(d) For the purposes of this section "inability to work" means disability which
3.28prevents the injured person from engaging in any substantial gainful occupation or
3.29employment on a regular basis, for wage or profit, for which the injured person is or may
3.30by training become reasonably qualified. If the injured person returns to employment and
3.31is unable by reason of the injury to work continuously, compensation for lost income shall
3.32be reduced by the income received while the injured person is actually able to work. The
3.33weekly maximums may not be prorated to arrive at a daily maximum, even if the injured
3.34person does not incur loss of income for a full week.
4.1(e) For the purposes of this section, an injured person who is "unable by reason of
4.2the injury to work continuously" includes, but is not limited to, a person who misses time
4.3from work, including reasonable travel time, and loses income, vacation, or sick leave
4.4benefits, to obtain medical treatment for an injury arising out of the maintenance or use
4.5of a motor vehicle.
4.6EFFECTIVE DATE.This section is effective January 1, 2015.

4.7    Sec. 5. Minnesota Statutes 2012, section 65B.44, subdivision 4, is amended to read:
4.8    Subd. 4. Funeral and burial expenses. Funeral and burial benefits shall be
4.9reasonable expenses not in excess of $2,000 $5,000, including expenses for cremation or
4.10delivery under the Darlene Luther Revised Uniform Anatomical Gift Act, chapter 525A.
4.11EFFECTIVE DATE.This section is effective January 1, 2015.

4.12    Sec. 6. Minnesota Statutes 2012, section 65B.44, subdivision 6, is amended to read:
4.13    Subd. 6. Survivors economic loss benefits. Survivors economic loss benefits, in
4.14the event of death occurring within one year of the date of the accident, caused by and
4.15arising out of injuries received in the accident, are subject to a maximum of $200 $500
4.16 per week and shall cover loss accruing after decedent's death of contributions of money
4.17or tangible things of economic value, not including services, that surviving dependents
4.18would have received from the decedent for their support during their dependency had the
4.19decedent not suffered the injury causing death.
4.20For the purposes of definition under sections 65B.41 to 65B.71, the following
4.21described persons shall be presumed to be dependents of a deceased person: (a) a wife
4.22is dependent on a husband with whom she lives at the time of his death; (b) a husband
4.23is dependent on a wife with whom he lives at the time of her death; (c) any child while
4.24under the age of 18 years, or while over that age but physically or mentally incapacitated
4.25from earning, is dependent on the parent with whom the child is living or from whom the
4.26child is receiving support regularly at the time of the death of such parent; or (d) an actual
4.27dependent who lives with the decedent at the time of the decedent's death. Questions of
4.28the existence and the extent of dependency shall be questions of fact, considering the
4.29support regularly received from the deceased.
4.30Payments shall be made to the dependent, except that benefits to a dependent who
4.31is a child or an incapacitated person may be paid to the dependent's surviving parent or
4.32guardian. Payments shall be terminated whenever the recipient ceases to maintain a status
4.33which if the decedent were alive would be that of dependency.
5.1EFFECTIVE DATE.This section is effective January 1, 2015.

5.2    Sec. 7. Minnesota Statutes 2012, section 65B.525, subdivision 1, is amended to read:
5.3    Subdivision 1. Mandatory submission to binding arbitration. Except as
5.4otherwise provided in section 72A.327, The Supreme Court and the several courts of
5.5general trial jurisdiction of this state shall by rules of court or other constitutionally
5.6allowable device, provide for the mandatory submission to binding arbitration of all cases
5.7at issue where the claim at the commencement of arbitration is in an amount of $10,000
5.8or less against any insured's reparation obligor for no-fault benefits or comprehensive or
5.9collision damage coverage.

5.10    Sec. 8. Minnesota Statutes 2012, section 65B.57, is amended to read:
5.1165B.57 ECONOMIC LOSS BENEFITS; EXEMPTIONS FROM LEGAL
5.12ATTACHMENT.
5.13(a) All economic loss benefits provided by sections 65B.41 to 65B.71, whether paid
5.14or payable to any claimant shall not be subject to garnishment, sequestration, attachment
5.15or execution, or any other legal process which would deny their receipt and use by that
5.16person; provided, however, that.
5.17(b) This section shall not apply to any person who has provided treatment or services,
5.18as described in section 65B.44, subdivision 2, to the victim of a motor vehicle accident.
5.19(c) Economic loss benefits paid or payable to any claimant, person, or entity who has
5.20provided treatment or services under sections 65B.41 to 65B.71 shall not be subject to any
5.21legal interest in the payment, whether by contract, lien, or other legal process before a
5.22denial of benefits by a reparations obligor.
5.23EFFECTIVE DATE.This section is effective the day following final enactment.

5.24    Sec. 9. Minnesota Statutes 2012, section 72A.502, subdivision 2, is amended to read:
5.25    Subd. 2. Prevention of fraud. Personal or privileged information may be disclosed
5.26without a written authorization to another person if the information is limited to that
5.27which is reasonably necessary to detect or prevent criminal activity, fraud, material
5.28misrepresentation, or material nondisclosure in connection with an insurance transaction,
5.29and that person agrees not to disclose the information further without the individual
5.30written authorization unless the further disclosure is otherwise permitted by this section
5.31if made by an insurer, insurance agent, or insurance-support organization. Any insurer,
6.1insurance agent, or insurance-support organization making such a disclosure is immune
6.2from liability under section 60A.952, subdivision 3.

6.3    Sec. 10. TASK FORCE ON MOTOR VEHICLE INSURANCE COVERAGE
6.4VERIFICATION.
6.5    Subdivision 1. Establishment. The task force on motor vehicle insurance coverage
6.6verification is established to review and evaluate approaches to insurance coverage
6.7verification and recommend legislation to create and fund a program in this state.
6.8    Subd. 2. Membership; meetings; staff. (a) The task force shall be composed of
6.914 members, who must be appointed by July 1, 2014, and who serve at the pleasure of
6.10their appointing authorities:
6.11(1) the commissioner of public safety or a designee;
6.12(2) the commissioner of commerce or a designee;
6.13(3) two members of the house of representatives, one appointed by the speaker of the
6.14house and one appointed by the minority leader;
6.15(4) two members of the senate, one appointed by the Subcommittee on Committees
6.16of the Committee on Rules and Administration and one appointed by the minority leader;
6.17(5) a representative of Minnesota Deputy Registrars Association;
6.18(6) a representative of AAA Minnesota;
6.19(7) a representative of AARP Minnesota;
6.20(8) a representative of the Insurance Federation of Minnesota;
6.21(9) a representative of the Minnesota Bankers Association;
6.22(10) a representative of the Minnesota Association for Justice;
6.23(11) a representative of the Minnesota Police and Peace Officers Association; and
6.24(12) a representative of the Minnesota chapter of the International Association of
6.25Special Investigation Units.
6.26(b) Compensation and expense reimbursement must be as provided under Minnesota
6.27Statutes, section 15.059, subdivision 3, to members of the task force.
6.28(c) The commissioner of public safety shall convene the task force by August
6.291, 2014, and shall appoint a chair from the membership of the task force. Staffing and
6.30technical assistance must be provided by the Department of Public Safety.
6.31    Subd. 3. Duties. The task force shall review and evaluate programs established in
6.32other states as well as programs proposed by third parties, identify one or more programs
6.33recommended for implementation in this state, and, as to the recommended programs,
6.34adopt findings concerning:
7.1(1) comparative costs of programs;
7.2(2) implementation considerations, and in particular, identifying the appropriate
7.3supervising agency and assessing compatibility with existing and planned computer
7.4systems;
7.5(3) effectiveness in verifying existence of motor vehicle insurance coverage;
7.6(4) identification of categories of authorized users;
7.7(5) simplicity of access and use for authorized users;
7.8(6) data privacy considerations;
7.9(7) data retention policies; and
7.10(8) statutory changes necessary for implementation.
7.11    Subd. 4. Report. By February 1, 2015, the task force must submit to the
7.12chairs and ranking minority members of the house of representatives and senate
7.13committees and divisions with primary jurisdiction over commerce and transportation its
7.14written recommendations, including any draft legislation necessary to implement the
7.15recommendations.
7.16    Subd. 5. Sunset. The task force shall sunset the day after submitting the report
7.17under subdivision 4, or February 2, 2015, whichever is earlier.
7.18EFFECTIVE DATE.This section is effective the day following final enactment.

7.19    Sec. 11. REPEALER.
7.20Minnesota Statutes 2012, section 72A.327, is repealed."
7.21Delete the title and insert:

7.22"A bill for an act

7.23relating to insurance; modifying certain regulations to reduce the incidence of
7.24insurance fraud; regulating no-fault auto benefits; modifying certain economic
7.25benefits under chapter 65B; establishing a task force on motor vehicle insurance
7.26coverage verification;amending Minnesota Statutes 2012, sections 13.7191,
7.27subdivision 16; 60A.952, subdivision 3; 65B.44, subdivisions 2, 3, 4, 6; 65B.525,
7.28subdivision 1; 65B.57; 72A.502, subdivision 2; repealing Minnesota Statutes
7.292012, section 72A.327."

8.1	We request the adoption of this report and repassage of the bill.
8.2	House Conferees:
8.3	.....		.....
8.4	Joe Atkins		Patti Fritz
8.5	.....
8.6	Denny McNamara
8.7	Senate Conferees:
8.8	.....		.....
8.9	Vicki Jensen		Susan Kent
8.10	.....
8.11	James P. Metzen