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HF 3818

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/28/2022 02:12pm

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

Current Version - as introduced

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A bill for an act
relating to health insurance; requiring the commissioner of commerce to evaluate
geographic rating areas; requiring reports; appropriating money.

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

Section 1. new text beginSTUDY AND REPORT ON DISPARITIES BETWEEN GEOGRAPHIC
RATING AREAS IN INDIVIDUAL AND SMALL GROUP MARKET HEALTH
INSURANCE RATES.
new text end

new text begin Subdivision 1. new text end

new text begin Study and recommendations. new text end

new text begin (a) The commissioner of commerce must
(1) study disparities between Minnesota's nine geographic rating areas in individual and
small group market health insurance rates, and (2) recommend ways to reduce or eliminate
rate disparities between the geographic rating areas and provide stability for the individual
and small group health insurance markets in Minnesota.
new text end

new text begin (b) As part of the study, the commissioner of commerce must:
new text end

new text begin (1) identify the factors that cause higher individual and small group market health
insurance rates in certain geographic rating areas, and determine the extent to which each
identified factor contributes to the higher rates;
new text end

new text begin (2) identify the impact of referral centers on individual and small group market health
insurance rates in southeastern Minnesota, and identify ways to reduce the rate disparity
between southeastern Minnesota and the metropolitan area, taking into consideration the
patterns of referral center usage by patients in those regions;
new text end

new text begin (3) determine the extent to which individuals and small employers located in a geographic
rating area with higher health insurance rates than surrounding geographic rating areas have
obtained health insurance in a lower-cost geographic rating area, identify the strategies that
individuals and small employers use to obtain health insurance in a lower-cost geographic
rating area, and measure the effects of this practice on the rates of the individuals and small
employers remaining in the geographic rating area with higher health insurance rates; and
new text end

new text begin (4) develop proposals to redraw the boundaries of Minnesota's geographic rating areas
and calculate the effect each proposal would have on rates in each of the proposed rating
areas. The commissioner of commerce must examine at least three options for redrawing
the boundaries of Minnesota's geographic rating areas, at least one of which must reduce
the number of geographic rating areas and at least one which must be based on the first
three digits of area zip codes. The commissioner shall not take into consideration the
requirements of Minnesota Statutes, section 62A.65, subdivision 3, paragraph (b), clause
(2), when developing the proposals required by this section. All options for redrawing
Minnesota's geographic rating areas considered by the commissioner of commerce must be
designed:
new text end

new text begin (i) to reduce or eliminate rate disparities between geographic rating areas and provide
for stability of the individual and small group health insurance markets in Minnesota;
new text end

new text begin (ii) after considering the composition of existing provider networks and referral patterns
in regions of Minnesota; and
new text end

new text begin (iii) in compliance with the requirements for geographic rating areas in Code of Federal
Regulations, title 45, section 147.102(b), and other applicable federal law and guidance.
new text end

new text begin (c) Health carriers that cover Minnesota residents, health systems that provide care to
Minnesota residents, and the commissioner of health must cooperate with any requests for
information from the commissioner of commerce that the commissioner of commerce
determines is necessary to conduct the study.
new text end

new text begin (d) The commissioner of commerce may recommend one or more proposals for redrawing
Minnesota's geographic rating areas if the commissioner of commerce determines that the
proposal would reduce or eliminate individual and small group market health insurance rate
disparities between the geographic rating areas and provide stability for the individual and
small group health insurance markets in Minnesota.
new text end

new text begin Subd. 2. new text end

new text begin Contract. new text end

new text begin The commissioner of commerce may contract with another entity
for technical assistance in conducting the study and developing recommendations according
to subdivision 1.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin The commissioner of commerce must complete the study and
recommendations by January 1, 2023, and submit a report on the study and recommendations
by that date to the chairs and ranking minority members of the legislative committees with
jurisdiction over health care and health insurance.
new text end

Sec. 2. new text beginAPPROPRIATION; STUDY AND REPORT ON DISPARITIES BETWEEN
GEOGRAPHIC RATING AREAS IN INDIVIDUAL AND SMALL GROUP MARKET
HEALTH INSURANCE RATES.
new text end

new text begin $....... in fiscal year 2023 is appropriated from the general fund to the commissioner of
commerce to study and report on disparities between geographic rating areas in individual
and small group market health insurance rates under section 1.
new text end