HF 3633

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/21/2022 02:50pm

A bill for an act
relating to health care; creating a Minnesota advance premium tax credit and cost
sharing subsidies for eligible individuals who enroll in an eligible qualified health
plan through MNsure; amending Minnesota Statutes 2020, section 62V.05,
subdivision 1, by adding subdivisions; proposing coding for new law in Minnesota
Statutes, chapter 290.

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

Section 1.

Minnesota Statutes 2020, section 62V.05, subdivision 1, is amended to read:

Subdivision 1.

General.

(a) The board shall operate MNsure according to this chapter
and applicable state and federal law.

(b) The board has the power to:

(1) employ personnel and delegate administrative, operational, and other responsibilities
to the director and other personnel as deemed appropriate by the board. This authority is
subject to chapters 43A and 179A. The director and managerial staff of MNsure shall serve
in the unclassified service and shall be governed by a compensation plan prepared by the
board, submitted to the commissioner of management and budget for review and comment
within 14 days of its receipt, and approved by the Legislative Coordinating Commission
and the legislature under section 3.855, except that section 15A.0815, subdivision 5,
paragraph (e), shall not apply;

(2) establish the budget of MNsure;

(3) seek and accept money, grants, loans, donations, materials, services, or advertising
revenue from government agencies, philanthropic organizations, and public and private
sources to fund the operation of MNsure. No health carrier or insurance producer shall
advertise on MNsure;

(4) contract for the receipt and provision of goods and services;

(5) enter into information-sharing agreements with federal and state agencies and other
entities, provided the agreements include adequate protections with respect to the
confidentiality and integrity of the information to be shared, and comply with all applicable
state and federal laws, regulations, and rules, including the requirements of section 62V.06;
and

(6) exercise all powers reasonably necessary to implement and administer the
requirements of this chapter new text begin , section 290.0687, new text end and the Affordable Care Act, Public Law
111-148.

(c) The board shall establish policies and procedures to gather public comment and
provide public notice in the State Register.

(d) Within 180 days of enactment, the board shall establish bylaws, policies, and
procedures governing the operations of MNsure in accordance with this chapter.

Sec. 2.

Minnesota Statutes 2020, section 62V.05, is amended by adding a subdivision to
read:

new text begin Subd. 13. new text end

new text begin Administration of Minnesota advance premium tax credits. new text end

new text begin (a) In addition
to the requirements under federal law, MNsure, in consultation with the commissioner of
revenue, shall establish and administer procedures to determine whether an individual is
eligible for Minnesota advance premium tax credits in accordance with section 290.0687.
If an individual is determined to be eligible, MNsure shall notify the individual of the amount
of the Minnesota advance premium tax credit and transmit eligibility and enrollment
information to the commissioner of revenue, including the individual's name, taxpayer
identification number, the dollar amount of the advance payment, and any other information
necessary to administer the Minnesota advance premium tax credit. The procedures must
also include provisions that take into account changes in an individual's circumstances that
may affect eligibility, including but not limited to substantial changes in income, household
size, or other tax household circumstances, employer coverage, change in filing status, or
change in Minnesota residency status.
new text end

new text begin (b) A health carrier that receives a Minnesota advance premium tax credit payment from
the commissioner of revenue for an individual in accordance with section 290.0687,
subdivision 3, must reduce the monthly premium charged to the individual by the amount
of the advance payment for that coverage month. The health carrier shall include in each
premium billing statement the amount by which the premium for the qualified health plan
was reduced due to the advance payment received by the health carrier from the commissioner
of revenue for that enrollee.
new text end

Sec. 3.

Minnesota Statutes 2020, section 62V.05, is amended by adding a subdivision to
read:

new text begin Subd. 14. new text end

new text begin Administration of Minnesota cost sharing reductions. new text end

new text begin (a) The board, in
consultation with the commissioner of revenue, shall establish and administer state-based
cost sharing subsidies to reduce the out-of-pocket costs for eligible individuals.
new text end

new text begin (b) To be eligible for state-based cost sharing subsidies under this subdivision, an
individual must:
new text end

new text begin (1) enroll in a qualified health plan at the silver level of coverage that is offered through
MNsure;
new text end

new text begin (2) have a projected annual household income that exceeds 200 percent of federal poverty
guidelines but is no greater than 500 percent of the federal poverty guidelines for the family
size involved;
new text end

new text begin (3) be a Minnesota resident;
new text end

new text begin (4) not have access to employer subsidized minimum essential coverage that is affordable
and provides minimum value as defined in Code of Federal Regulations, title 26, section
1.36B-2, or the American Rescue Plan Act of 2021, and not to be enrolled in other minimum
essential health coverage as defined by section 5000A(f) of the Internal Revenue Code; and
new text end

new text begin (5) meet all eligibility criteria for premium tax credits under Code of Federal Regulations,
title 26, section 1.36B-2, with the exception of section 1.36B-2(b)(1).
new text end

new text begin (c) The board shall establish procedures to notify a health carrier that an eligible individual
has enrolled in a qualified health plan offered by the health carrier through MNsure. Upon
notification, the health carrier shall reduce the cost sharing of the qualified health plan in
such a manner that increases the health plan's share of the total allowed costs of benefits
provided under the health plan to 87 percent of such costs. The state based cost-sharing
reduction is in addition to any federal cost-sharing reduction an eligible individual is entitled
to under section 1412 of the Affordable Care Act, Public Law 111-148.
new text end

new text begin (d) A health carrier that makes these cost sharing reductions shall notify the commissioner
of revenue of the reduction. The commissioner shall make periodic and timely payments
to the health carrier that are equal to the value of the reductions. The commissioner may
establish a capitated payment system to carry out the payment of the cost sharing reductions.
Any such system must take into account the value of the reductions and make appropriate
risk adjustments to the payments.
new text end

Sec. 4.

new text begin [290.0687] MINNESOTA ADVANCE PREMIUM TAX CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed. new text end

new text begin A qualified taxpayer who is a resident of Minnesota is
allowed a Minnesota advance premium tax credit against the tax imposed under this chapter.
The credit equals the difference between the premium assistance credit and the Minnesota
premium assistance credit amount. For a part-year resident, the credit must be allocated
based on the percentage calculated under section 290.06, subdivision 2c, paragraph (e).
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following definitions apply.
new text end

new text begin (b) "Qualified taxpayer" means an applicable taxpayer, as defined under section 36B(c)(1)
of the Internal Revenue Code, without regard to the expiration of section 36B(c)(1)(E).
new text end

new text begin (c) "Premium assistance credit" means the credit calculated under section 36B(b) of the
Internal Revenue Code, except that the percentages under section 36B(b)(3)(A)(iii) apply
to the calculation of the credit under this section without regard to expiration of section
36B(b)(3)(A)(iii).
new text end

new text begin (d) "Minnesota premium assistance credit amount" means the sum of Minnesota premium
assistance amounts for all months of the taxable year in which the taxpayer was covered by
a qualified health plan.
new text end

new text begin (e) "Minnesota premium assistance amount" means the lesser of:
new text end

new text begin (1) the monthly premiums for each month for one or more qualified health plans offered
through MNsure that cover the taxpayer, the taxpayer's spouse, or any dependent of the
taxpayer and that were enrolled in through MNsure; or
new text end

new text begin (2) the excess, if any, of:
new text end

new text begin (i) the adjusted monthly premium for each month for the applicable second lowest cost
silver plan offered with respect to the taxpayer; over
new text end

new text begin (ii) an amount equal to 1/12 of the product of the applicable percentage under section
36B(b)(3)(A)(i) of the Internal Revenue Code, and the taxpayer's projected annual household
income for the taxable year, except that household income must not be less than 200 percent
of the poverty line and must not exceed 800 percent of the poverty line, and the applicable
percentage for households with income above 400 percent of the poverty line must equal
the applicable percentage for households with income equaling 400 percent of the poverty
line.
new text end

new text begin (f) "Family size," "household income," and "poverty line" have the meanings given in
section 36B(d) of the Internal Revenue Code.
new text end

new text begin (g) "Dependent" has the meaning given in section 152 of the Internal Revenue Code.
new text end

new text begin (h) "MNsure" has the meaning given in section 62V.02, subdivision 8.
new text end

new text begin (i) "Qualified health plan" has the meaning given in section 62V.02, subdivision 11.
new text end

new text begin (j) "Health carrier" has the meaning given in section 62V.02, subdivision 5.
new text end

new text begin Subd. 3. new text end

new text begin Advance determination of eligibility; advance payments. new text end

new text begin The commissioner,
in consultation with MNsure and based on the information received from MNsure under
section 62V.05, subdivision 13, shall make advance payment of the Minnesota advance
premium tax credit allowed under this section to the health carrier that issued the qualified
health plan in which a qualified taxpayer is enrolled for the purpose of reducing the qualified
taxpayer's premiums for the qualified health plan by the amount of the credit. The advanced
payment amount of the credit under this section is in addition to the advance credit payment
paid by the secretary of treasury under section 36B(b) of the Internal Revenue Code.
new text end

new text begin Subd. 4. new text end

new text begin Reconciliation of advance payments and credit. new text end

new text begin (a) The Minnesota premium
assistance credit under this section is reduced by the amount of advanced payments made
to the issuer of a qualified plan on behalf of a qualified taxpayer. If advance payments
exceed the amount of the Minnesota advance premium tax credit allowed under this section,
the excess amount must be added to the qualified taxpayer's tax liability as calculated under
this chapter. A refund due to the qualified taxpayer under any other credits in this chapter
must be reduced by the amount of excess advance payments made on behalf of the taxpayer
in a taxable year.
new text end

new text begin (b) The provisions of section 36B(f)(2)(B) of the Internal Revenue Code apply for
purposes of calculating excess advance payments of the Minnesota advance premium tax
credit under this section.
new text end

new text begin Subd. 5. new text end

new text begin Credit refundable. new text end

new text begin Subject to the provisions of subdivisions 3 and 4, if the
amount of the Minnesota premium assistance credit that a qualified taxpayer is allowed
under this section exceeds the qualified taxpayer's tax liability under this chapter, the
commissioner shall refund the excess to the qualified taxpayer.
new text end

new text begin Subd. 6. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the advance payments authorized
under subdivision 3 and refunds authorized under subdivision 5 is appropriated to the
commissioner from the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2022.
new text end