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HF 3731

as introduced - 90th Legislature (2017 - 2018) Posted on 03/14/2018 11:41am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to insurance; regulating small employer health coverage; modifying waiver
of coverage limitations; amending Minnesota Statutes 2016, section 62L.03,
subdivision 3.

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

Section 1.

Minnesota Statutes 2016, section 62L.03, subdivision 3, is amended to read:


Subd. 3.

Minimum participation and contribution.

(a) A small employer that has at
least 75 percent of its eligible employees who have not waived coverage participating in a
health benefit plan and that contributes at least 50 percent toward the cost of coverage of
each eligible employee must be guaranteed coverage on a guaranteed issue basis from any
health carrier participating in the small employer market. The participation level of eligible
employees must be determined at the initial offering of coverage and at the renewal date of
coverage. A health carrier must not increase the participation requirements applicable to a
small employer at any time after the small employer has been accepted for coverage. For
the purposes of this subdivision, waiver of coverage includes only waivers due to: (1)
coverage under another group health plan; (2) coverage under Medicare Parts A and B; deleted text begin ordeleted text end
(3)new text begin coverage under MNsure; (4) coverage under MinnesotaCare; or (5)new text end coverage under
medical assistance under chapter 256B.

(b) If a small employer does not satisfy the contribution or participation requirements
under this subdivision, a health carrier may voluntarily issue or renew individual health
plans, or a health benefit plan which must fully comply with this chapter. A health carrier
that provides a health benefit plan to a small employer that does not meet the contribution
or participation requirements of this subdivision must maintain this information in its files
for audit by the commissioner. A health carrier may not offer an individual health plan,
purchased through an arrangement between the employer and the health carrier, to any
employee unless the health carrier also offers the individual health plan, on a guaranteed
issue basis, to all other employees of the same employer. An arrangement permitted under
section 62L.12, subdivision 2, paragraph (l), is not an arrangement between the employer
and the health carrier for purposes of this paragraph.

(c) Nothing in this section obligates a health carrier to issue coverage to a small employer
that currently offers coverage through a health benefit plan from another health carrier,
unless the new coverage will replace the existing coverage and not serve as one of two or
more health benefit plans offered by the employer. This paragraph does not apply if the
small employer will meet the required participation level with respect to the new coverage.

(d) If a small employer cannot meet either the participation or contribution requirement,
the small employer may purchase coverage only during an open enrollment period each
year between November 15 and December 15.