HF 4221

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to health care; developing a statewide plan for the redesign of the health
care system.

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

Section 1. new text begin HEALTH CARE SYSTEM REDESIGN FOR THE STATE OF
MINNESOTA.
new text end

new text begin Subdivision 1. new text end

new text begin Redesign. new text end

new text begin The commissioner of health, in consultation with the
Health Care Redevelopment Task Force, shall develop a statewide plan, budget, timeline,
and proposed legislation to implement a statewide redesign of the Minnesota health care
system that meet the parameters described in subdivision 2. The plan and draft legislation
must be submitted to the legislature by October 1, 2007.
new text end

new text begin Subd. 2. new text end

new text begin Plan parameters. new text end

new text begin (a) The statewide health care redevelopment plan
shall include:
new text end

new text begin (1) the development of a state-funded catastrophic health plan to be available to
every citizen of Minnesota. The catastrophic health plan must meet the criteria described
in subdivision 3;
new text end

new text begin (2) the development of gap insurance policies to be offered on an individual
guaranteed basis. The gap insurance polices must meet the criteria described in
subdivision 4;
new text end

new text begin (3) recommendations for funding arrangements necessary to finance the state
catastrophic health plan, including, but not limited to, a one percent employer payroll
fee and a one percent employee payroll fee. The plan shall also explore eliminating tax
deductions for employers for providing health benefits directly to their employees and
creating tax deductions for individuals for health plan premiums, medical expenses, and
contributions to a health savings account;
new text end

new text begin (4) providing a premium subsidy in the form of a voucher for low-income individuals
and families who are not eligible for medical assistance to enable these individuals and
families to purchase a gap insurance policy or contribute to a health savings account. The
amount of the subsidy must be based on income and family size;
new text end

new text begin (5) the development of a health care information Web site that contains information
on health care costs and quality indicators. The Web site must include information and
links to enable consumers to assess and compare cost, quality, and efficiency of Minnesota
health care providers and health plan options;
new text end

new text begin (6) recommendations on the implementation of an electronic medical expense card
that would track an individual's medical expenses incurred during the calendar year in
order to determine eligibility to the state catastrophic health plan; and
new text end

new text begin (7) an analysis on the expected impact on the health care system in terms of cost,
access to coverage and services, rate of uninsurance, rate of uncompensated care provided,
and quality of care.
new text end

new text begin (b) The proposed plan shall maintain the medical assistance program as a safety net
for the low income, disabled, and elderly.
new text end

new text begin (c) In developing the statewide plan the commissioner and task force may offer
alternative proposals to those specified in this section as long as the proposed alternatives
follow the basic parameters of the redesign proposal.
new text end

new text begin Subd. 3. new text end

new text begin State catastrophic health plan. new text end

new text begin (a) The state catastrophic health plan
shall provide health care coverage to any individual who has spent within a calendar
year the greater of:
new text end

new text begin (1) 12 percent of the individual's or family's gross income based on the previous
calendar year's gross income; or
new text end

new text begin (2) $30,000 for a family or $20,000 for an individual on medical expenses, including
premiums and cost sharing.
new text end

new text begin (b) To be eligible for the state catastrophic health plan, an individual must not be
eligible for Medicare or the medical assistance program.
new text end

new text begin (c) To be eligible for the state catastrophic health plan, an individual must have been
a legal citizen of Minnesota for at least six months.
new text end

new text begin (d) The catastrophic health plan must provide coverage for the following benefits:
new text end

new text begin (1) hospital services;
new text end

new text begin (2) professional services for the diagnosis or treatment of injuries, illnesses, or
conditions, other than dental, which are rendered by a physician or at a physician's
direction;
new text end

new text begin (3) prescription drugs;
new text end

new text begin (4) anesthetics;
new text end

new text begin (5) rental or purchase, as appropriate, of durable medical equipment other than
eyeglasses and hearing aids;
new text end

new text begin (6) diagnostic x-rays and laboratory tests; and
new text end

new text begin (7) transportation provided by licensed ambulance service to the nearest facility
qualified to treat the condition.
new text end

new text begin (e) The plan may include cost-sharing requirements.
new text end

new text begin Subd. 4. new text end

new text begin Gap insurance policies. new text end

new text begin The gap insurance policies shall be offered on an
individual guaranteed basis to provide health care coverage until eligibility for the state
catastrophic health plan is met. The gap insurance policies must provide coverage for all
benefits offered under the state catastrophic health plan. Premium rates may vary to reflect
actuarially valid differences attributable to age, nonuse of tobacco, and compliance with
recommended health screenings and preventive care. Premium rate variations must be
in accordance with Minnesota Statutes, section 62L.08. The purchase of gap insurance
shall be optional with a variety of plans offered with a range of annual deductibles and
including a health savings account option.
new text end

new text begin Subd. 5. new text end

new text begin Health Care Redevelopment Task Force. new text end

new text begin (a) The commissioner of health
shall convene a Health Care Redevelopment Task Force to make recommendations to the
commissioner regarding the statewide redesign of the health care system described in
subdivision 1.
new text end

new text begin (b) The task force shall consist of 14 members:
new text end

new text begin (1) two members representing health plan companies;
new text end

new text begin (2) two members representing employers;
new text end

new text begin (3) two members representing consumers;
new text end

new text begin (4) one member who is a health economist;
new text end

new text begin (5) one member who is a health actuary;
new text end

new text begin (6) one member representing the Minnesota Comprehensive Health Insurance
Association; and
new text end

new text begin (7) the commissioners of commerce, human services, employee relations, revenue,
and labor and industry.
new text end

new text begin (c) The task force shall make recommendations on coordinating the coverage for
injuries subject to the workers' compensation and coverage contained in motor vehicle
insurance policies with the state catastrophic health plan.
new text end

new text begin (d) The task force shall evaluate a plan for reactivating the reinsurance pool
established under Minnesota Statutes, sections 62L.13 to 62L.23, and converting it to a
reinsurance pool for high-cost cases covered under the gap policies.
new text end

new text begin (e) The task force is governed under Minnesota Statutes, section 15.0575.
new text end

new text begin (f) The task force shall expire December 31, 2008.
new text end