HF 4218

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/10/2022 03:41pm

A bill for an act
relating to health; authorizing in-home day care cooperative health plans; proposing
coding for new law in Minnesota Statutes, chapter 62H.

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

Section 1.

new text begin [62H.19] IN-HOME DAY CARE COOPERATIVE HEALTH PLAN.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Broker" means an insurance agent engaged in brokerage business under section
60K.49.
new text end

new text begin (c) "Employee Retirement Income Security Act" means the Employee Retirement Income
Security Act of 1974, United States Code, title 29, sections 1001, et seq.
new text end

new text begin (d) "Enrollee" means a natural person covered by a joint self-insurance plan operating
under this section.
new text end

new text begin (e) "In-home day care cooperative" means a cooperative organized under chapter 308A
or 308B that is formed to facilitate health care coverage for the cooperative's members
engaged in providing in-home day care services.
new text end

new text begin (f) "Insurance agent" has the meaning given in section 60A.02, subdivision 7.
new text end

new text begin (g) "Joint self-insurance plan" or "plan" means a plan or any other arrangement,
established for the benefit of two or more entities authorized to transact business in Minnesota
to jointly self-insure through a single employee welfare benefit plan funded through a trust,
to provide health, dental, or other benefits permitted under the Employee Retirement Income
Security Act.
new text end

new text begin (h) "Service plan administrator" means a vendor licensed under section 60A.23 to provide
risk management services.
new text end

new text begin (i) "Trust" means a trust established to (1) accept and hold assets of the joint
self-insurance plan in trust, and (2) use and disperse funds in accordance with the terms of
the written trust document and joint self-insurance plan solely to provide benefits and defray
reasonable administrative costs incurred to provide the benefits.
new text end

new text begin Subd. 2. new text end

new text begin Exemption. new text end

new text begin A joint self-insurance plan, a joint self-insurance plan administrator,
a stop-loss carrier, and any broker assisting the in-home day care cooperative are exempt
from sections 62H.01 to 62H.17 and are governed by the requirements of this section if the
joint self-insurance plan: (1) is administrated through a trust established by an in-home day
care cooperative that specifies criteria for membership in the in-home day care cooperative
in the articles of organization or bylaws, provided that criteria cannot be based on health
status factors of the individuals to be covered through the joint self-insurance plan; and (2)
grants at least 51 percent of the aggregate voting power to members identified in subdivision
3, clause (1), with respect to (i) matters all members may vote on, and (ii) any additional
criteria in the in-home day care cooperative's articles of organization and bylaws.
new text end

new text begin Subd. 3. new text end

new text begin Plan requirements. new text end

new text begin A joint self-insurance plan operating under this section
must:
new text end

new text begin (1) offer health coverage to members of the in-home day care cooperative that establishes
the plan and dependents of members, employees of members of the in-home day care
cooperative that establishes the plan and the dependents of employees of members, or
employees of the in-home day care cooperative that establishes the plan and the dependents
of employees of the in-home day care cooperative. Health coverage must be offered only
to individuals who meet certain criteria described in the joint self-insurance plan governing
documents, provided that criteria cannot be based on health status factors of the individuals
to be covered through the joint self-insurance plan;
new text end

new text begin (2) include stop-loss coverage with an individual attachment point not lower than $20,000
and an aggregate attachment point not lower than 110 percent of expected claims, issued
by an insurance company licensed in Minnesota;
new text end

new text begin (3) establish a reserve fund, certified by an actuary to be sufficient to cover unpaid claim
liability for incurred but unreported liabilities in the event of plan termination. Certification
from the actuary must include all maximum funding requirements for plan fixed cost
requirements and current claims liability requirements, and must include a calculation of
the reserve levels needed to fund all incurred but unreported liabilities in the event of member
or plan termination. Reserve funds under this clause must be held in a trust;
new text end

new text begin (4) be governed by a board elected by in-home day care cooperative members that
participate in the plan;
new text end

new text begin (5) contract for services with a service plan administrator; and
new text end

new text begin (6) satisfy the requirements of the Employee Retirement Income Security Act that apply
to employee welfare benefit plans.
new text end

new text begin Subd. 4. new text end

new text begin Submission of documents to commissioner of commerce. new text end

new text begin A joint
self-insurance plan operating under this section must submit to the commissioner of
commerce copies of all filings and reports that are submitted to the United States Department
of Labor under the Employee Retirement Income Security Act. Members participating in
the joint self-insurance plan may designate an in-home day care cooperative that establishes
the plan as the entity responsible for satisfying the reporting requirements of the Employee
Retirement Income Security Act and for providing copies of the filings and reports to the
commissioner of commerce.
new text end

new text begin Subd. 5. new text end

new text begin Participation; termination of participation. new text end

new text begin If a member chooses to participate
in a joint self-insurance plan under this section, the member must participate in the plan for
at least three consecutive years. If a member terminates participation in the plan before the
end of the three-year period, a financial penalty may be assessed under the plan. A financial
penalty assessed under this subdivision must exceed the amount contributed by the member
to the plan reserves.
new text end

new text begin Subd. 6. new text end

new text begin Single risk pool. new text end

new text begin The enrollees of a joint self-insurance plan operating under
this section must be members of a single risk pool. The plan must provide benefits as a
single, self-insured plan with the plan's size based on the total enrollees in the risk pool.
new text end

new text begin Subd. 7. new text end

new text begin Promotion; marketing; sale of coverage. new text end

new text begin (a) Coverage in a joint self-insurance
plan operating under this section may be promoted, marketed, and sold by insurance agents
and brokers to members of the in-home day care cooperative sponsoring the plan and the
dependents of members, employees of members of the in-home day care cooperative
sponsoring the plan and the dependents of employees of members, and employees of the
in-home day care cooperative sponsoring the plan and the dependents of employees of the
in-home day care cooperative.
new text end

new text begin (b) Coverage in a joint self-insurance plan operating under this section may be promoted
and marketed by a cooperative organized under chapter 308A or 308B to persons who may
be eligible to participate in the joint self-insurance plan.
new text end

new text begin Subd. 8. new text end

new text begin Taxation. new text end

new text begin Joint self-insurance plans are exempt from the taxes imposed under
section 297I.05, subdivision 12.
new text end

new text begin Subd. 9. new text end

new text begin Compliance with other laws. new text end

new text begin A joint self-insurance plan operating under this
section:
new text end

new text begin (1) is exempt from providing the mandated health benefits under chapters 62A and 62Q
if the plan otherwise provides the benefits required under the Employee Retirement Income
Security Act;
new text end

new text begin (2) is exempt from the continuation requirements under sections 62A.146, 62A.16,
62A.17, 62A.20, and 62A.21 if the plan complies with the continuation requirements under
the Employee Retirement Income Security Act; and
new text end

new text begin (3) must comply with all requirements of the Affordable Care Act, as defined in section
62A.011, subdivision 1a, to the extent that the requirements apply to joint self-insurance
plans under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 1, 2022.
new text end