HF 3721

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to insurance; requiring certain health insurers to offer small employers
the option to purchase certain flexible benefits plans; amending Minnesota
Statutes 2006, section 62L.056.

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

Section 1.

Minnesota Statutes 2006, section 62L.056, is amended to read:

62L.056 SMALL EMPLOYER FLEXIBLE BENEFITS PLANS.

(a) Notwithstanding any provision of this chapter, chapter 363A, or any other law
to the contrary, a health carrier may offer, sell, issue, and renew a health benefit plan
that is a flexible benefits plan under this section to a small employer if the following
requirements are satisfied:

(1) the health benefit plan must be offered in compliance with this chapter, except as
otherwise permitted in this section;

(2) the health benefit plan to be offered must be designed to enable employers and
covered persons to better manage costs and coverage options through the use of co-pays,
deductibles, and other cost-sharing arrangements;

(3) the health benefit plan must be issued and administered in compliance with
sections 62E.141; 62L.03, subdivision 6; and 62L.12, subdivisions 3 and 4, relating
to prohibitions against enrolling in the Minnesota Comprehensive Health Association
persons eligible for employer group coverage;

(4) the health benefit plan may modify or exclude any or all coverages of benefits
that would otherwise be required by law, except for maternity benefits and other benefits
required under federal law;

(5) each health benefit plan must be approved by the commissioner of commerce,
but the commissioner may not disapprove a plan on the grounds of a modification or
exclusion permitted under clause (4); and

(6) prior to sale of the health benefit plan, the small employer must be given a
written list of the coverages otherwise required by law that are modified or excluded in the
health benefit plan. The list must include a description of each coverage in the list and
indicate whether the coverage is modified or excluded. If a coverage is modified, the list
must describe the modification. The list may, but need not, also list any or all coverages
otherwise required by law that are included in the health benefit plan and indicate that
they are included. The insurer must require that a copy of this written list be provided,
prior to the effective date of the health benefit plan, to each employee who is eligible for
health coverage under the employer's plan.

(b) The definitions in section 62L.02 apply to this section as modified by this section.

(c) An employer may provide a health benefit plan permitted under this section to its
employees, the employees' dependents, and other persons eligible for coverage under the
employer's plan, notwithstanding chapter 363A or any other law to the contrary.

new text begin (d) Any health carrier that issues or renews health benefit plans in this state and
is assessed at least ten percent of the total annual amount assessed by the Minnesota
Comprehensive Health Association must offer to each small employer to whom the
health carrier offers to issue or renew a health benefit plan the option to purchase one of
two flexible benefits plans approved by the commissioner of commerce for that health
carrier under this section. The two flexible benefits plans that the health carrier must
offer must have premium reductions, due solely to exclusions or modifications permitted
under paragraph (a), clause (4), of:
new text end

new text begin (1) approximately five percent; and
new text end

new text begin (2) approximately ten percent, respectively.
new text end

new text begin When a health carrier submits a flexible benefits plan to the commissioner of
commerce for approval under this section, the commissioner shall, upon request of the
health carrier, determine whether the flexible benefits plan qualifies under clause (1) or (2).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2009, and applies to
issuance or renewal of coverage on or after that date.
new text end