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HF 3853

as introduced - 86th Legislature (2009 - 2010) Posted on 05/14/2010 11:51am

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

Current Version - as introduced

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A bill for an act
relating to human services; changing provisions for medical assistance; amending
Minnesota Statutes 2008, section 256B.69, by adding a subdivision.


Section 1.

Minnesota Statutes 2008, section 256B.69, is amended by adding a
subdivision to read:

new text begin Subd. 5k. new text end

new text begin Limits on net income and administrative costs; enabling expansion
of prepaid medical assistance.
new text end

new text begin (a) Notwithstanding any other law to the contrary, the
total net income received by a managed care plan for providing covered services under the
medical assistance program must not exceed six percent of the total revenues the managed
care plan receives from the program. For purposes of this paragraph, "net income" means
total revenues received by the managed care plan under the program minus expenses and
other adjustments, all as required to be defined for purposes of the managed care plan's
annual statement of revenue, expenses, and net income, prepared using the appropriate
National Association of Insurance Commissioners Blank and related instructions for
health maintenance organizations, as required and amended by Minnesota Rules, part
4685.1940. The managed care plan shall refund any amounts of net income in excess of
six percent to the commissioner, no later than 30 days after the end of each month.
new text end

new text begin (b) For services rendered under paragraph (a), allowable administrative costs for a
managed care plan are the per-enrollee dollar amount allowed in 2009.
new text end

new text begin (c) The commissioner shall deposit in the general fund all savings in costs to the
state achieved under this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end