<div class="xtend"><a id="pl.1.1"></a><var>1.1</var>CONFERENCE COMMITTEE REPORT ON H. F. No. 5<br />
         		
         <div class="xtend_ce"><a id="pl.1.2"></a><var>1.2</var>A bill for an act<br />
            		
         </div><a id="pl.1.3"></a><var>1.3</var>relating to insurance; health; regulating certain data practices of the premium <br />
         		<a id="pl.1.4"></a><var>1.4</var>subsidy program; creating a state-operated reinsurance program; appropriating <br />
         		<a id="pl.1.5"></a><var>1.5</var>money;amending Minnesota Statutes 2016, sections 62E.10, subdivision 2; 62E.11, <br />
         		<a id="pl.1.6"></a><var>1.6</var>subdivisions 5, 6; 297I.05, subdivisions 5, 13; Laws 2017, chapter 2, article 1, <br />
         		<a id="pl.1.7"></a><var>1.7</var>section 2, subdivision 4; proposing coding for new law in Minnesota Statutes, <br />
         		<a id="pl.1.8"></a><var>1.8</var>chapter 62E; repealing Laws 2013, chapter 9, section 15.<br />
         		<a id="pl.1.9"></a><var>1.9</var>March 29, 2017<br />
         		<a id="pl.1.10"></a><var>1.10</var>The Honorable Kurt L. Daudt<br />
         		<a id="pl.1.11"></a><var>1.11</var>Speaker of the House of Representatives<br />
         		<a id="pl.1.12"></a><var>1.12</var>The Honorable Michelle L. Fischbach<br />
         		<a id="pl.1.13"></a><var>1.13</var>President of the Senate<br />
         		<a id="pl.1.14"></a><var>1.14</var>We, the undersigned conferees for H. F. No. 5 report that we have agreed upon the items <br />
         		<a id="pl.1.15"></a><var>1.15</var>in dispute and recommend as follows:<br />
         		<a id="pl.1.16"></a><var>1.16</var>That the Senate recede from its amendments and that H. F. No. 5 be further amended <br />
         		<a id="pl.1.17"></a><var>1.17</var>as follows:<br />
         		<a id="pl.1.18"></a><var>1.18</var>Delete everything after the enacting clause and insert:<br />
         		<br />
         		<a id="bill.1.0.0"></a><div class="xtend_ce"><a id="pl.1.19"></a><var>1.19</var>"<b>ARTICLE 1</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.1.20"></a><var>1.20</var><b>MINNESOTA PREMIUM SECURITY PLAN</b><br />
            		
         </div><br />
         		<a id="bill.1.1.0"></a><a id="pl.1.21"></a><var>1.21</var>&#160;&#160;&#160;&#160;Section 1. Minnesota Statutes 2016, section 62E.10, subdivision 2, is amended to read:<br />
         		<a id="pl.1.22"></a><var>1.22</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Board of directors; organization.</b> The board of directors of the association <br />
         		<a id="pl.1.23"></a><var>1.23</var>shall be made up of eleven 13 members as follows: six directors selected by contributing <br />
         		<a id="pl.1.24"></a><var>1.24</var>members, subject to approval by the commissioner, one of which must be a health actuary; <br />
         		<a id="pl.1.25"></a><var>1.25</var>two directors selected by the commissioner of human services, one of whom must represent
         <br />
         		<a id="pl.1.26"></a><var>1.26</var>hospitals and one of whom must represent health care providers; five public directors selected <br />
         		<a id="pl.1.27"></a><var>1.27</var>by the commissioner, at least two of whom must be plan enrollees, two of whom are covered <br />
         		<a id="pl.1.28"></a><var>1.28</var>under an individual plan subject to assessment under section 
         <statute_ref>62E.11</statute_ref> or group plan offered <br />
         		<a id="pl.2.1"></a><var>2.1</var>by an employer subject to assessment under section 
         <statute_ref>62E.11</statute_ref>, enrollees in the individual <br />
         		<a id="pl.2.2"></a><var>2.2</var>market and one of whom must be a licensed insurance agent. At least two of the public <br />
         		<a id="pl.2.3"></a><var>2.3</var>directors must reside outside of the seven-county metropolitan area. In determining
         voting <br />
         		<a id="pl.2.4"></a><var>2.4</var>rights at members' meetings, each member shall be entitled to vote in person or proxy.
         The <br />
         		<a id="pl.2.5"></a><var>2.5</var>vote shall be a weighted vote based upon the member's cost of self-insurance, accident
         and <br />
         		<a id="pl.2.6"></a><var>2.6</var>health insurance premium, subscriber contract charges, health maintenance contract
         payment, <br />
         		<a id="pl.2.7"></a><var>2.7</var>or community integrated service network payment derived from or on behalf of Minnesota
         <br />
         		<a id="pl.2.8"></a><var>2.8</var>residents in the previous calendar year, as determined by the commissioner. In approving <br />
         		<a id="pl.2.9"></a><var>2.9</var>directors of the board, the commissioner shall consider, among other things, whether
         all <br />
         		<a id="pl.2.10"></a><var>2.10</var>types of members are fairly represented. Directors selected by contributing members
         may <br />
         		<a id="pl.2.11"></a><var>2.11</var>be reimbursed from the money of the association for expenses incurred by them as directors,
         <br />
         		<a id="pl.2.12"></a><var>2.12</var>but shall not otherwise be compensated by the association for their services. The costs of <br />
         		<a id="pl.2.13"></a><var>2.13</var>conducting meetings of the association and its board of directors shall be borne by
         members <br />
         		<a id="pl.2.14"></a><var>2.14</var>of the association.<br />
         		<br />
         		<a id="bill.1.2.0"></a><a id="pl.2.15"></a><var>2.15</var>&#160;&#160;&#160;&#160;Sec. 2. <b>[62E.21] DEFINITIONS.</b><br />
         		<a id="pl.2.16"></a><var>2.16</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Application.</b> For the purposes of sections 62E.21 to 62E.25, the terms <br />
         		<a id="pl.2.17"></a><var>2.17</var>defined in this section have the meanings given them.<br />
         		<a id="pl.2.18"></a><var>2.18</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Affordable Care Act.</b> "Affordable Care Act" means the federal act as defined <br />
         		<a id="pl.2.19"></a><var>2.19</var>in section 62A.011, subdivision 1a.<br />
         		<a id="pl.2.20"></a><var>2.20</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Attachment point.</b> "Attachment point" means an amount as provided in section <br />
         		<a id="pl.2.21"></a><var>2.21</var>62E.23, subdivision 2, paragraph (b).<br />
         		<a id="pl.2.22"></a><var>2.22</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Benefit year.</b> "Benefit year" means the calendar year for which an eligible <br />
         		<a id="pl.2.23"></a><var>2.23</var>health carrier provides coverage through an individual health plan.<br />
         		<a id="pl.2.24"></a><var>2.24</var>&#160;&#160;&#160;&#160;Subd. 5. <b>Board.</b> "Board" means the board of directors of the Minnesota Comprehensive <br />
         		<a id="pl.2.25"></a><var>2.25</var>Health Association created under section 62E.10.<br />
         		<a id="pl.2.26"></a><var>2.26</var>&#160;&#160;&#160;&#160;Subd. 6. <b>Coinsurance rate.</b> "Coinsurance rate" means the rate as provided in section <br />
         		<a id="pl.2.27"></a><var>2.27</var>62E.23, subdivision 2, paragraph (c).<br />
         		<a id="pl.2.28"></a><var>2.28</var>&#160;&#160;&#160;&#160;Subd. 7. <b>Commissioner.</b> "Commissioner" means the commissioner of commerce.<br />
         		<a id="pl.2.29"></a><var>2.29</var>&#160;&#160;&#160;&#160;Subd. 8. <b>Eligible health carrier.</b> "Eligible health carrier" means all of the following <br />
         		<a id="pl.2.30"></a><var>2.30</var>that offer individual health plans and incur claims costs for an individual enrollee's
         covered <br />
         		<a id="pl.2.31"></a><var>2.31</var>benefits in the applicable benefit year:<br />
         		<a id="pl.3.1"></a><var>3.1</var>(1) an insurance company licensed under chapter 60A to offer, sell, or issue a policy
         of <br />
         		<a id="pl.3.2"></a><var>3.2</var>accident and sickness insurance as defined in section 62A.01;<br />
         		<a id="pl.3.3"></a><var>3.3</var>(2) a nonprofit health service plan corporation operating under chapter 62C; or<br />
         		<a id="pl.3.4"></a><var>3.4</var>(3) a health maintenance organization operating under chapter 62D.<br />
         		<a id="pl.3.5"></a><var>3.5</var>&#160;&#160;&#160;&#160;Subd. 9. <b>Individual health plan.</b> "Individual health plan" means a health plan as defined <br />
         		<a id="pl.3.6"></a><var>3.6</var>in section 62A.011, subdivision 4, that is not a grandfathered plan as defined in
         section <br />
         		<a id="pl.3.7"></a><var>3.7</var>62A.011, subdivision 1b.<br />
         		<a id="pl.3.8"></a><var>3.8</var>&#160;&#160;&#160;&#160;Subd. 10. <b>Individual market.</b> "Individual market" has the meaning given in section <br />
         		<a id="pl.3.9"></a><var>3.9</var>62A.011, subdivision 5.<br />
         		<a id="pl.3.10"></a><var>3.10</var>&#160;&#160;&#160;&#160;Subd. 11. <b>Minnesota Comprehensive Health Association or association.</b> "Minnesota <br />
         		<a id="pl.3.11"></a><var>3.11</var>Comprehensive Health Association" or "association" has the meaning given in section
         <br />
         		<a id="pl.3.12"></a><var>3.12</var>62E.02, subdivision 14.<br />
         		<a id="pl.3.13"></a><var>3.13</var>&#160;&#160;&#160;&#160;Subd. 12. <b>Minnesota premium security plan or plan.</b> "Minnesota premium security <br />
         		<a id="pl.3.14"></a><var>3.14</var>plan" or "plan" means the state-based reinsurance program authorized under section
         62E.23.<br />
         		<a id="pl.3.15"></a><var>3.15</var>&#160;&#160;&#160;&#160;Subd. 13. <b>Payment parameters.</b> "Payment parameters" means the attachment point, <br />
         		<a id="pl.3.16"></a><var>3.16</var>reinsurance cap, and coinsurance rate for the plan.<br />
         		<a id="pl.3.17"></a><var>3.17</var>&#160;&#160;&#160;&#160;Subd. 14. <b>Reinsurance cap.</b> "Reinsurance cap" means the threshold amount as provided <br />
         		<a id="pl.3.18"></a><var>3.18</var>in section 62E.23, subdivision 2, paragraph (d).<br />
         		<a id="pl.3.19"></a><var>3.19</var>&#160;&#160;&#160;&#160;Subd. 15. <b>Reinsurance payments.</b> "Reinsurance payments" means an amount paid by <br />
         		<a id="pl.3.20"></a><var>3.20</var>the association to an eligible health carrier under the plan.<br />
         		<br />
         		<a id="bill.1.3.0"></a><a id="pl.3.21"></a><var>3.21</var>&#160;&#160;&#160;&#160;Sec. 3. <b>[62E.22] DUTIES OF COMMISSIONER.</b><br />
         		<a id="pl.3.22"></a><var>3.22</var>The commissioner shall require eligible health carriers to calculate the premium amount
         <br />
         		<a id="pl.3.23"></a><var>3.23</var>the eligible health carrier would have charged for the benefit year if the Minnesota
         premium <br />
         		<a id="pl.3.24"></a><var>3.24</var>security plan had not been established. The eligible health carrier must submit this
         <br />
         		<a id="pl.3.25"></a><var>3.25</var>information as part of its rate filing. The commissioner must consider this information
         as <br />
         		<a id="pl.3.26"></a><var>3.26</var>part of the rate review.<br />
         		<br />
         		<a id="bill.1.4.0"></a><a id="pl.3.27"></a><var>3.27</var>&#160;&#160;&#160;&#160;Sec. 4. <b>[62E.23] MINNESOTA PREMIUM SECURITY PLAN.</b><br />
         		<a id="pl.3.28"></a><var>3.28</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Administration of plan.</b> (a) The association is Minnesota's reinsurance <br />
         		<a id="pl.3.29"></a><var>3.29</var>entity to administer the state-based reinsurance program referred to as the Minnesota
         premium <br />
         		<a id="pl.3.30"></a><var>3.30</var>security plan.<br />
         		<a id="pl.4.1"></a><var>4.1</var>(b) The association may apply for any available federal funding for the plan. All
         funds <br />
         		<a id="pl.4.2"></a><var>4.2</var>received by or appropriated to the association shall be deposited in the premium security
         <br />
         		<a id="pl.4.3"></a><var>4.3</var>plan account in section 62E.25, subdivision 1. The association shall notify the chairs
         and <br />
         		<a id="pl.4.4"></a><var>4.4</var>ranking minority members of the legislative committees with jurisdiction over health
         and <br />
         		<a id="pl.4.5"></a><var>4.5</var>human services and insurance within ten days of receiving any federal funds.<br />
         		<a id="pl.4.6"></a><var>4.6</var>(c) The association must collect or access data from an eligible health carrier that
         are <br />
         		<a id="pl.4.7"></a><var>4.7</var>necessary to determine reinsurance payments, according to the data requirements under
         <br />
         		<a id="pl.4.8"></a><var>4.8</var>subdivision 5, paragraph (c).<br />
         		<a id="pl.4.9"></a><var>4.9</var>(d) The board must not use any funds allocated to the plan for staff retreats, promotional
         <br />
         		<a id="pl.4.10"></a><var>4.10</var>giveaways, excessive executive compensation, or promotion of federal or state legislative
         <br />
         		<a id="pl.4.11"></a><var>4.11</var>or regulatory changes.<br />
         		<a id="pl.4.12"></a><var>4.12</var>(e) For each applicable benefit year, the association must notify eligible health
         carriers <br />
         		<a id="pl.4.13"></a><var>4.13</var>of reinsurance payments to be made for the applicable benefit year no later than June
         30 of <br />
         		<a id="pl.4.14"></a><var>4.14</var>the year following the applicable benefit year.<br />
         		<a id="pl.4.15"></a><var>4.15</var>(f) On a quarterly basis during the applicable benefit year, the association must
         provide <br />
         		<a id="pl.4.16"></a><var>4.16</var>each eligible health carrier with the calculation of total reinsurance payment requests.<br />
         		<a id="pl.4.17"></a><var>4.17</var>(g) By August 15 of the year following the applicable benefit year, the association
         must <br />
         		<a id="pl.4.18"></a><var>4.18</var>disburse all applicable reinsurance payments to an eligible health carrier.<br />
         		<a id="pl.4.19"></a><var>4.19</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Payment parameters.</b> (a) The board must design and adjust the payment <br />
         		<a id="pl.4.20"></a><var>4.20</var>parameters to ensure the payment parameters:<br />
         		<a id="pl.4.21"></a><var>4.21</var>(1) will stabilize or reduce premium rates in the individual market;<br />
         		<a id="pl.4.22"></a><var>4.22</var>(2) will increase participation in the individual market;<br />
         		<a id="pl.4.23"></a><var>4.23</var>(3) will improve access to health care providers and services for those in the individual
         <br />
         		<a id="pl.4.24"></a><var>4.24</var>market;<br />
         		<a id="pl.4.25"></a><var>4.25</var>(4) mitigate the impact high-risk individuals have on premium rates in the individual
         <br />
         		<a id="pl.4.26"></a><var>4.26</var>market;<br />
         		<a id="pl.4.27"></a><var>4.27</var>(5) take into account any federal funding available for the plan; and<br />
         		<a id="pl.4.28"></a><var>4.28</var>(6) take into account the total amount available to fund the plan.<br />
         		<a id="pl.4.29"></a><var>4.29</var>(b) The attachment point for the plan is the threshold amount for claims costs incurred
         <br />
         		<a id="pl.4.30"></a><var>4.30</var>by an eligible health carrier for an enrolled individual's covered benefits in a benefit
         year, <br />
         		<a id="pl.4.31"></a><var>4.31</var>beyond which the claims costs for benefits are eligible for reinsurance payments.
         The <br />
         		<a id="pl.5.1"></a><var>5.1</var>attachment point shall be set by the board at $50,000 or more, but not exceeding the
         <br />
         		<a id="pl.5.2"></a><var>5.2</var>reinsurance cap.<br />
         		<a id="pl.5.3"></a><var>5.3</var>(c) The coinsurance rate for the plan is the rate at which the association will reimburse
         <br />
         		<a id="pl.5.4"></a><var>5.4</var>an eligible health carrier for claims incurred for an enrolled individual's covered
         benefits <br />
         		<a id="pl.5.5"></a><var>5.5</var>in a benefit year above the attachment point and below the reinsurance cap. The coinsurance
         <br />
         		<a id="pl.5.6"></a><var>5.6</var>rate shall be set by the board at a rate between 50 and 80 percent.<br />
         		<a id="pl.5.7"></a><var>5.7</var>(d) The reinsurance cap is the threshold amount for claims costs incurred by an eligible
         <br />
         		<a id="pl.5.8"></a><var>5.8</var>health carrier for an enrolled individual's covered benefits, after which the claims
         costs for <br />
         		<a id="pl.5.9"></a><var>5.9</var>benefits are no longer eligible for reinsurance payments. The reinsurance cap shall
         be set <br />
         		<a id="pl.5.10"></a><var>5.10</var>by the board at $250,000 or less.<br />
         		<a id="pl.5.11"></a><var>5.11</var>(e) The board may adjust the payment parameters to the extent necessary to secure
         <br />
         		<a id="pl.5.12"></a><var>5.12</var>federal approval of the state innovation waiver request in article 1, section 8.<br />
         		<a id="pl.5.13"></a><var>5.13</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Operation.</b> (a) The board shall propose to the commissioner the payment <br />
         		<a id="pl.5.14"></a><var>5.14</var>parameters for the next benefit year by January 15 of the year before the applicable
         benefit <br />
         		<a id="pl.5.15"></a><var>5.15</var>year. The commissioner shall approve or reject the payment parameters no later than
         14 <br />
         		<a id="pl.5.16"></a><var>5.16</var>days following the board's proposal. If the commissioner fails to approve or reject
         the <br />
         		<a id="pl.5.17"></a><var>5.17</var>payment parameters within 14 days following the board's proposal, the proposed payment
         <br />
         		<a id="pl.5.18"></a><var>5.18</var>parameters are final and effective.<br />
         		<a id="pl.5.19"></a><var>5.19</var>(b) If the amount in the premium security plan account in section 62E.25, subdivision
         <br />
         		<a id="pl.5.20"></a><var>5.20</var>1, is not anticipated to be adequate to fully fund the approved payment parameters
         as of <br />
         		<a id="pl.5.21"></a><var>5.21</var>July 1 of the year before the applicable benefit year, the board, in consultation
         with the <br />
         		<a id="pl.5.22"></a><var>5.22</var>commissioner and the commissioner of management and budget, shall propose payment
         <br />
         		<a id="pl.5.23"></a><var>5.23</var>parameters within the available appropriations. The commissioner must permit an eligible
         <br />
         		<a id="pl.5.24"></a><var>5.24</var>health carrier to revise an applicable rate filing based on the final payment parameters
         for <br />
         		<a id="pl.5.25"></a><var>5.25</var>the next benefit year.<br />
         		<a id="pl.5.26"></a><var>5.26</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Calculation of reinsurance payments.</b> (a) Each reinsurance payment must be <br />
         		<a id="pl.5.27"></a><var>5.27</var>calculated with respect to an eligible health carrier's incurred claims costs for
         an individual <br />
         		<a id="pl.5.28"></a><var>5.28</var>enrollee's covered benefits in the applicable benefit year. If the claims costs do
         not exceed <br />
         		<a id="pl.5.29"></a><var>5.29</var>the attachment point, the reinsurance payment is $0. If the claims costs exceed the
         attachment <br />
         		<a id="pl.5.30"></a><var>5.30</var>point, the reinsurance payment shall be calculated as the product of the coinsurance
         rate <br />
         		<a id="pl.5.31"></a><var>5.31</var>and the lesser of:<br />
         		<a id="pl.5.32"></a><var>5.32</var>(1) the claims costs minus the attachment point; or<br />
         		<a id="pl.5.33"></a><var>5.33</var>(2) the reinsurance cap minus the attachment point.<br />
         		<a id="pl.6.1"></a><var>6.1</var>(b) The board must ensure that reinsurance payments made to eligible health carriers
         do <br />
         		<a id="pl.6.2"></a><var>6.2</var>not exceed the total amount paid by the eligible health carrier for any eligible claim.
         "Total <br />
         		<a id="pl.6.3"></a><var>6.3</var>amount paid of an eligible claim" means the amount paid by the eligible health carrier
         based <br />
         		<a id="pl.6.4"></a><var>6.4</var>upon the allowed amount less any deductible, coinsurance, or co-payment, as of the
         time <br />
         		<a id="pl.6.5"></a><var>6.5</var>the data are submitted or made accessible under subdivision 5, paragraph (c).<br />
         		<a id="pl.6.6"></a><var>6.6</var>&#160;&#160;&#160;&#160;Subd. 5. <b>Eligible carrier requests for reinsurance payments.</b> (a) An eligible health <br />
         		<a id="pl.6.7"></a><var>6.7</var>carrier may request reinsurance payments from the association when the eligible health
         <br />
         		<a id="pl.6.8"></a><var>6.8</var>carrier meets the requirements of this subdivision and subdivision 4.<br />
         		<a id="pl.6.9"></a><var>6.9</var>(b) An eligible health carrier must make requests for reinsurance payments in accordance
         <br />
         		<a id="pl.6.10"></a><var>6.10</var>with any requirements established by the board.<br />
         		<a id="pl.6.11"></a><var>6.11</var>(c) An eligible health carrier must provide the association with access to the data
         within <br />
         		<a id="pl.6.12"></a><var>6.12</var>the dedicated data environment established by the eligible health carrier under the
         federal <br />
         		<a id="pl.6.13"></a><var>6.13</var>risk adjustment program under United States Code, title 42, section 18063. Eligible
         health <br />
         		<a id="pl.6.14"></a><var>6.14</var>carriers must submit an attestation to the board asserting compliance with the dedicated
         <br />
         		<a id="pl.6.15"></a><var>6.15</var>data environments, data requirements, establishment and usage of masked enrollee <br />
         		<a id="pl.6.16"></a><var>6.16</var>identification numbers, and data submission deadlines.<br />
         		<a id="pl.6.17"></a><var>6.17</var>(d) An eligible health carrier must provide the access described in paragraph (c)
         for the <br />
         		<a id="pl.6.18"></a><var>6.18</var>applicable benefit year by April 30 of each year of the year following the end of
         the <br />
         		<a id="pl.6.19"></a><var>6.19</var>applicable benefit year.<br />
         		<a id="pl.6.20"></a><var>6.20</var>(e) An eligible health carrier must maintain documents and records, whether paper,
         <br />
         		<a id="pl.6.21"></a><var>6.21</var>electronic, or in other media, sufficient to substantiate the requests for reinsurance
         payments <br />
         		<a id="pl.6.22"></a><var>6.22</var>made pursuant to this section for a period of at least six years. An eligible health
         carrier <br />
         		<a id="pl.6.23"></a><var>6.23</var>must also make those documents and records available upon request from the commissioner
         <br />
         		<a id="pl.6.24"></a><var>6.24</var>for purposes of verification, investigation, audit, or other review of reinsurance
         payment <br />
         		<a id="pl.6.25"></a><var>6.25</var>requests.<br />
         		<a id="pl.6.26"></a><var>6.26</var>(f) An eligible health carrier may follow the appeals procedure under section 62E.10,
         <br />
         		<a id="pl.6.27"></a><var>6.27</var>subdivision 2a.<br />
         		<a id="pl.6.28"></a><var>6.28</var>(g) The association may have an eligible health carrier audited to assess the health
         <br />
         		<a id="pl.6.29"></a><var>6.29</var>carrier's compliance with the requirements of this section. The eligible health carrier
         must <br />
         		<a id="pl.6.30"></a><var>6.30</var>ensure that its contractors, subcontractors, or agents cooperate with any audit under
         this <br />
         		<a id="pl.6.31"></a><var>6.31</var>section. If an audit results in a proposed finding of material weakness or significant
         deficiency <br />
         		<a id="pl.6.32"></a><var>6.32</var>with respect to compliance with any requirement of this section, the eligible health
         carrier <br />
         		<a id="pl.6.33"></a><var>6.33</var>may provide a response to the proposed finding within 30 days. Within 30 days of the
         <br />
         		<a id="pl.7.1"></a><var>7.1</var>issuance of a final audit report that includes a finding of material weakness or significant
         <br />
         		<a id="pl.7.2"></a><var>7.2</var>deficiency, the eligible health carrier must:<br />
         		<a id="pl.7.3"></a><var>7.3</var>(1) provide a written corrective action plan to the association for approval;<br />
         		 <a id="pl.7.4"></a><var>7.4</var>(2) implement the approved plan; and<br />
         		<a id="pl.7.5"></a><var>7.5</var>(3) provide the association with written documentation of the corrective action once
         <br />
         		<a id="pl.7.6"></a><var>7.6</var>taken.<br />
         		<a id="pl.7.7"></a><var>7.7</var>&#160;&#160;&#160;&#160;Subd. 6. <b>Data.</b> Government data of the association under this section are private data <br />
         		<a id="pl.7.8"></a><var>7.8</var>on individuals, or nonpublic data, as defined under section 13.02, subdivisions 9
         or 12.<br />
         		<br />
         		<a id="bill.1.5.0"></a><a id="pl.7.9"></a><var>7.9</var>&#160;&#160;&#160;&#160;Sec. 5. <b>[62E.24] ACCOUNTING, REPORTS, AND AUDITS OF THE </b><br />
         		<a id="pl.7.10"></a><var>7.10</var><b>ASSOCIATION.</b><br />
         		<a id="pl.7.11"></a><var>7.11</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Accounting.</b> The board must keep an accounting for each benefit year <br />
         		<a id="pl.7.12"></a><var>7.12</var>of all:<br />
         		<a id="pl.7.13"></a><var>7.13</var>(1) funds appropriated for reinsurance payments and administrative and operational
         <br />
         		<a id="pl.7.14"></a><var>7.14</var>expenses;<br />
         		<a id="pl.7.15"></a><var>7.15</var>(2) requests for reinsurance payments received from eligible health carriers;<br />
         		<a id="pl.7.16"></a><var>7.16</var>(3) reinsurance payments made to eligible health carriers; and<br />
         		<a id="pl.7.17"></a><var>7.17</var>(4) administrative and operational expenses incurred for the plan.<br />
         		<a id="pl.7.18"></a><var>7.18</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Reports.</b> The board must submit to the commissioner and make available to <br />
         		<a id="pl.7.19"></a><var>7.19</var>the public a report summarizing the plan operations for each benefit year by posting
         the <br />
         		<a id="pl.7.20"></a><var>7.20</var>summary on the Minnesota Comprehensive Health Association Web site and making the
         <br />
         		<a id="pl.7.21"></a><var>7.21</var>summary otherwise available by November 1 of the year following the applicable benefit
         <br />
         		<a id="pl.7.22"></a><var>7.22</var>year or 60 calendar days following the final disbursement of reinsurance payments
         for the <br />
         		<a id="pl.7.23"></a><var>7.23</var>applicable benefit year, whichever is later.<br />
         		<a id="pl.7.24"></a><var>7.24</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Legislative auditor.</b> The Minnesota premium security plan is subject to audit <br />
         		<a id="pl.7.25"></a><var>7.25</var>by the legislative auditor. The board must ensure that its contractors, subcontractors,
         or <br />
         		<a id="pl.7.26"></a><var>7.26</var>agents cooperate with the audit.<br />
         		<a id="pl.7.27"></a><var>7.27</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Independent external audit.</b> (a) The board must engage and cooperate with <br />
         		<a id="pl.7.28"></a><var>7.28</var>an independent certified public accountant or CPA firm licensed or permitted under
         chapter <br />
         		<a id="pl.7.29"></a><var>7.29</var>326A to perform an audit for each benefit year of the plan, in accordance with generally
         <br />
         		<a id="pl.7.30"></a><var>7.30</var>accepted auditing standards. The audit must at a minimum:<br />
         		<a id="pl.7.31"></a><var>7.31</var>(1) assess compliance with the requirements of sections 62E.21 to 62E.25; and<br />
         		<a id="pl.8.1"></a><var>8.1</var>(2) identify any material weaknesses or significant deficiencies and address manners
         in <br />
         		<a id="pl.8.2"></a><var>8.2</var>which to correct any such material weaknesses or deficiencies.<br />
         		<a id="pl.8.3"></a><var>8.3</var>(b) The board, after receiving the completed audit, must:<br />
         		<a id="pl.8.4"></a><var>8.4</var>(1) provide the commissioner the results of the audit;<br />
         		<a id="pl.8.5"></a><var>8.5</var>(2) identify to the commissioner any material weakness or significant deficiency identified
         <br />
         		<a id="pl.8.6"></a><var>8.6</var>in the audit and address in writing to the commissioner how the board intends to correct
         <br />
         		<a id="pl.8.7"></a><var>8.7</var>any such material weakness or significant deficiency in compliance with subdivision
         5; and<br />
         		<a id="pl.8.8"></a><var>8.8</var>(3) make public the results of the audit, to the extent the audit contains government
         data <br />
         		<a id="pl.8.9"></a><var>8.9</var>that is public, including any material weakness or significant deficiency and how
         the board <br />
         		<a id="pl.8.10"></a><var>8.10</var>intends to correct the material weakness or significant deficiency, by posting the
         audit results <br />
         		<a id="pl.8.11"></a><var>8.11</var>on the Minnesota Comprehensive Health Association Web site and making the audit results
         <br />
         		<a id="pl.8.12"></a><var>8.12</var>otherwise available.<br />
         		<a id="pl.8.13"></a><var>8.13</var>&#160;&#160;&#160;&#160;Subd. 5. <b>Actions on audit findings.</b> (a) If an audit results in a finding of material <br />
         		<a id="pl.8.14"></a><var>8.14</var>weakness or significant deficiency with respect to compliance by the association with
         any <br />
         		<a id="pl.8.15"></a><var>8.15</var>requirement under sections 62E.21 to 62E.25, the board must:<br />
         		<a id="pl.8.16"></a><var>8.16</var>(1) provide a written corrective action plan to the commissioner for approval within
         60 <br />
         		<a id="pl.8.17"></a><var>8.17</var>days of the completed audit;<br />
         		<a id="pl.8.18"></a><var>8.18</var>(2) implement the corrective action plan; and<br />
         		<a id="pl.8.19"></a><var>8.19</var>(3) provide the commissioner with written documentation of the corrective actions
         taken.<br />
         		<a id="pl.8.20"></a><var>8.20</var>(b) By December 1 of each year, the board must submit a report to the standing <br />
         		<a id="pl.8.21"></a><var>8.21</var>committees of the legislature having jurisdiction over health and human services and
         <br />
         		<a id="pl.8.22"></a><var>8.22</var>insurance regarding any finding of material weakness or significant deficiency found
         in an <br />
         		<a id="pl.8.23"></a><var>8.23</var>audit.<br />
         		<br />
         		<a id="bill.1.6.0"></a><a id="pl.8.24"></a><var>8.24</var>&#160;&#160;&#160;&#160;Sec. 6. <b>[62E.25] ACCOUNTS.</b><br />
         		<a id="pl.8.25"></a><var>8.25</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Premium security plan account.</b> The premium security plan account is <br />
         		<a id="pl.8.26"></a><var>8.26</var>created in the special revenue fund of the state treasury. Funds in the account are
         appropriated <br />
         		<a id="pl.8.27"></a><var>8.27</var>annually to the commissioner of commerce for grants to the Minnesota Comprehensive
         <br />
         		<a id="pl.8.28"></a><var>8.28</var>Health Association for the operational and administrative costs and reinsurance payments
         <br />
         		<a id="pl.8.29"></a><var>8.29</var>relating to the start-up and operation of the Minnesota premium security plan. <br />
         		<a id="pl.8.30"></a><var>8.30</var>Notwithstanding section 11A.20, all investment income and all investment losses attributable
         <br />
         		<a id="pl.8.31"></a><var>8.31</var>to the investment of the premium security plan account shall be credited to the premium
         <br />
         		<a id="pl.8.32"></a><var>8.32</var>security plan account.<br />
         		<a id="pl.9.1"></a><var>9.1</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Deposits.</b> Except as provided in subdivision 3, funds received by the <br />
         		<a id="pl.9.2"></a><var>9.2</var>commissioner of commerce or other state agency pursuant to the state innovation waiver
         <br />
         		<a id="pl.9.3"></a><var>9.3</var>request in article 1, section 8, shall be deposited in the premium security plan account
         in <br />
         		<a id="pl.9.4"></a><var>9.4</var>subdivision 1.<br />
         		<a id="pl.9.5"></a><var>9.5</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Basic health plan trust account.</b> Funds received by the commissioner of <br />
         		<a id="pl.9.6"></a><var>9.6</var>commerce or other state agency pursuant to the state innovation waiver request in
         article 1, <br />
         		<a id="pl.9.7"></a><var>9.7</var>section 8, that are attributable to the basic health program shall be deposited in
         the basic <br />
         		<a id="pl.9.8"></a><var>9.8</var>health plan trust account in the federal fund.<br />
         		<br />
         		<a id="bill.1.7.0"></a><a id="pl.9.9"></a><var>9.9</var>&#160;&#160;&#160;&#160;Sec. 7. Laws 2013, chapter 9, section 15, is amended to read:<br />
         		<a id="pl.9.10"></a><var>9.10</var>&#160;&#160;&#160;&#160;Sec. 15. <b>MINNESOTA COMPREHENSIVE HEALTH ASSOCIATION </b><br />
         		<a id="pl.9.11"></a><var>9.11</var><b>TERMINATION.</b><br />
         		<a id="pl.9.12"></a><var>9.12</var>(a) The commissioner of commerce, in consultation with the board of directors of the <br />
         		<a id="pl.9.13"></a><var>9.13</var>Minnesota Comprehensive Health Association, has the authority to develop and implement
         <br />
         		<a id="pl.9.14"></a><var>9.14</var>the phase-out and eventual appropriate termination of coverage provided by the Minnesota
         <br />
         		<a id="pl.9.15"></a><var>9.15</var>Comprehensive Health Association under Minnesota Statutes, chapter 62E. The phase-out
         <br />
         		<a id="pl.9.16"></a><var>9.16</var>of coverage shall begin no sooner than January 1, 2014, or upon the effective date
         of the <br />
         		<a id="pl.9.17"></a><var>9.17</var>operation of the Minnesota Insurance Marketplace and the ability to purchase qualified
         <br />
         		<a id="pl.9.18"></a><var>9.18</var>health plans through the Minnesota Insurance Marketplace, whichever is later, and
         shall, <br />
         		<a id="pl.9.19"></a><var>9.19</var>to the extent practicable, ensure the least amount of disruption to the enrollees'
         health care <br />
         		<a id="pl.9.20"></a><var>9.20</var>coverage. The member assessments established under Minnesota Statutes, section 
         <statute_ref>62E.11</statute_ref>, <br />
         		<a id="pl.9.21"></a><var>9.21</var>shall take into consideration any phase-out of coverage implemented under this section.<br />
         		<a id="pl.9.22"></a><var>9.22</var>(b) Nothing in paragraph (a) applies to the Minnesota premium security plan, as defined
         <br />
         		<a id="pl.9.23"></a><var>9.23</var>in Minnesota Statutes, section 62E.21, subdivision 12.<br />
         		<br />
         		<a id="bill.1.8.0"></a><a id="pl.9.24"></a><var>9.24</var>&#160;&#160;&#160;&#160;Sec. 8. <b>STATE INNOVATION WAIVER.</b><br />
         		<a id="pl.9.25"></a><var>9.25</var>&#160;&#160;&#160;&#160;Subdivision 1. <b>Submission of waiver application.</b> The commissioner of commerce <br />
         		<a id="pl.9.26"></a><var>9.26</var>shall apply to the secretary of health and human services under United States Code,
         title <br />
         		<a id="pl.9.27"></a><var>9.27</var>42, section 18052, for a state innovation waiver to implement the Minnesota premium
         <br />
         		<a id="pl.9.28"></a><var>9.28</var>security plan for benefit years beginning January 1, 2018, and future years, to maximize
         <br />
         		<a id="pl.9.29"></a><var>9.29</var>federal funding. The waiver application must clearly state that operation of the Minnesota
         <br />
         		<a id="pl.9.30"></a><var>9.30</var>premium security plan is contingent on approval of the waiver request.<br />
         		<a id="pl.10.1"></a><var>10.1</var>&#160;&#160;&#160;&#160;Subd. 2. <b>Consultation.</b> In developing the waiver application, the commissioner shall <br />
         		<a id="pl.10.2"></a><var>10.2</var>consult with the commissioner of human services, the commissioner of health, and the
         <br />
         		<a id="pl.10.3"></a><var>10.3</var>MNsure board.<br />
         		<a id="pl.10.4"></a><var>10.4</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Application timelines; notification.</b> The commissioner shall submit the waiver <br />
         		<a id="pl.10.5"></a><var>10.5</var>application to the secretary of health and human services on or before June 15, 2017.
         The <br />
         		<a id="pl.10.6"></a><var>10.6</var>commissioner shall make a draft application available for public review and comment
         by <br />
         		<a id="pl.10.7"></a><var>10.7</var>May 15, 2017. The commissioner shall notify the chairs and ranking minority members
         of <br />
         		<a id="pl.10.8"></a><var>10.8</var>the legislative committees with jurisdiction over health and human services and insurance,
         <br />
         		<a id="pl.10.9"></a><var>10.9</var>and the board of directors of the Minnesota Comprehensive Health Association of any
         <br />
         		<a id="pl.10.10"></a><var>10.10</var>federal actions regarding the waiver request.<br />
         		<br />
         		<a id="bill.1.9.0"></a><a id="pl.10.11"></a><var>10.11</var>&#160;&#160;&#160;&#160;Sec. 9. <b>COSTS RELATED TO IMPLEMENTATION OF THIS ACT.</b><br />
         		<a id="pl.10.12"></a><var>10.12</var>A state agency that incurs administrative costs to implement any provision of this
         act <br />
         		<a id="pl.10.13"></a><var>10.13</var>and does not receive an appropriation for administrative costs of this act must implement
         <br />
         		<a id="pl.10.14"></a><var>10.14</var>the act within the limits of existing appropriations.<br />
         		<br />
         		<a id="bill.1.10.0"></a><a id="pl.10.15"></a><var>10.15</var>&#160;&#160;&#160;&#160;Sec. 10. <b>PREMIUM SECURITY PLAN CONTINGENT ON FEDERAL WAIVER.</b><br />
         		<a id="pl.10.16"></a><var>10.16</var>If the state innovation waiver request in article 1, section 8, is not approved, the
         Minnesota <br />
         		<a id="pl.10.17"></a><var>10.17</var>Comprehensive Health Association and its board of directors shall not administer the
         <br />
         		<a id="pl.10.18"></a><var>10.18</var>Minnesota premium security plan and provide reinsurance payments to eligible health
         <br />
         		<a id="pl.10.19"></a><var>10.19</var>carriers.<br />
         		<br />
         		<a id="bill.1.11.0"></a><a id="pl.10.20"></a><var>10.20</var>&#160;&#160;&#160;&#160;Sec. 11. <b>PAYMENT PARAMETERS FOR 2018.</b><br />
         		<a id="pl.10.21"></a><var>10.21</var>(a) Notwithstanding Minnesota Statutes, section 62E.23, and subject to paragraph (b),
         <br />
         		<a id="pl.10.22"></a><var>10.22</var>the Minnesota premium security plan payment parameters for benefit year 2018 are:<br />
         		<a id="pl.10.23"></a><var>10.23</var>(1) an attachment point of $50,000;<br />
         		<a id="pl.10.24"></a><var>10.24</var>(2) a coinsurance rate of 80 percent; and<br />
         		<a id="pl.10.25"></a><var>10.25</var>(3) a reinsurance cap of $250,000.<br />
         		<a id="pl.10.26"></a><var>10.26</var>(b) The board of directors of the Minnesota Comprehensive Health Association may <br />
         		<a id="pl.10.27"></a><var>10.27</var>alter the payment parameters to the extent necessary to secure federal approval of
         the state <br />
         		<a id="pl.10.28"></a><var>10.28</var>innovation waiver request in article 1, section 8.<br />
         		<br />
         		<a id="bill.1.12.0"></a><a id="pl.11.1"></a><var>11.1</var>&#160;&#160;&#160;&#160;Sec. 12. <b>DEPOSIT OF FUNDS.</b><br />
         		<a id="pl.11.2"></a><var>11.2</var>(a) Within ten days of the effective date of this section, the Minnesota Comprehensive
         <br />
         		<a id="pl.11.3"></a><var>11.3</var>Health Association, as defined in Minnesota Statutes, section 62E.02, subdivision
         14, shall <br />
         		<a id="pl.11.4"></a><var>11.4</var>deposit all money, including monetary reserves, the association holds into the premium
         <br />
         		<a id="pl.11.5"></a><var>11.5</var>security plan account in Minnesota Statutes, section 62E.25, subdivision 1.<br />
         		<a id="pl.11.6"></a><var>11.6</var>(b) Notwithstanding paragraph (a), the Minnesota Comprehensive Health Association
         <br />
         		<a id="pl.11.7"></a><var>11.7</var>may retain funds necessary to fulfill medical needs and contractual obligations in
         place for <br />
         		<a id="pl.11.8"></a><var>11.8</var>former Minnesota Comprehensive Health Association enrollees until December 31, 2018.<br />
         		<br />
         		<a id="bill.1.13.0"></a><a id="pl.11.9"></a><var>11.9</var>&#160;&#160;&#160;&#160;Sec. 13. <b>DISPOSITION AND SETTLEMENTS.</b><br />
         		<a id="pl.11.10"></a><var>11.10</var>Notwithstanding Minnesota Statutes, section 62E.09, and any other law to the contrary,
         <br />
         		<a id="pl.11.11"></a><var>11.11</var>the board of directors of the Minnesota Comprehensive Health Association, as defined
         in <br />
         		<a id="pl.11.12"></a><var>11.12</var>Minnesota Statutes, section 62E.02, subdivision 14, shall have authority:<br />
         		<a id="pl.11.13"></a><var>11.13</var>(1) over the disposition and settlement of all funds held by the association, including
         <br />
         		<a id="pl.11.14"></a><var>11.14</var>prior assessments, to the extent funds have not been transferred pursuant to article
         1, section <br />
         		<a id="pl.11.15"></a><var>11.15</var>12; and<br />
         		<a id="pl.11.16"></a><var>11.16</var>(2) to settle and make determinations regarding litigation pending on the effective
         date <br />
         		<a id="pl.11.17"></a><var>11.17</var>of this act, including litigation that impacts funds held by the association.<br />
         		<br />
         		<a id="bill.1.14.0"></a><a id="pl.11.18"></a><var>11.18</var>&#160;&#160;&#160;&#160;Sec. 14. <b>LEGISLATIVE WORKING GROUP.</b><br />
         		<a id="pl.11.19"></a><var>11.19</var>A legislative working group is established consisting of the chairs and ranking minority
         <br />
         		<a id="pl.11.20"></a><var>11.20</var>members of the senate committees with jurisdiction over commerce, health and human
         <br />
         		<a id="pl.11.21"></a><var>11.21</var>services finance and policy, and human services reform finance and policy and the
         chairs <br />
         		<a id="pl.11.22"></a><var>11.22</var>and ranking minority members of the house of representatives committees with jurisdiction
         <br />
         		<a id="pl.11.23"></a><var>11.23</var>over commerce and regulatory reform, health and human services finance, and health
         and <br />
         		<a id="pl.11.24"></a><var>11.24</var>human services reform. The purpose of the working group is to advise the board of
         the <br />
         		<a id="pl.11.25"></a><var>11.25</var>Minnesota Comprehensive Health Association on the adoption of payment parameters and
         <br />
         		<a id="pl.11.26"></a><var>11.26</var>other elements of a reinsurance plan for benefit year 2019. The commissioner of commerce
         <br />
         		<a id="pl.11.27"></a><var>11.27</var>must provide technical assistance for the working group, and must review and monitor
         the <br />
         		<a id="pl.11.28"></a><var>11.28</var>following to serve as a resource for the working group:<br />
         		<a id="pl.11.29"></a><var>11.29</var>(1) the effectiveness of reinsurance models adopted in Alaska and other states in
         <br />
         		<a id="pl.11.30"></a><var>11.30</var>stabilizing premiums in the individual market and the related costs thereof;<br />
         		<a id="pl.11.31"></a><var>11.31</var>(2) the effect of federal health reform legislation on the Minnesota premium security
         <br />
         		<a id="pl.11.32"></a><var>11.32</var>plan, including but not limited to funding for the plan; and<br />
         		<a id="pl.12.1"></a><var>12.1</var>(3) the status of the health care access fund, and issues relating to its potential
         continued <br />
         		<a id="pl.12.2"></a><var>12.2</var>use as a source of funding for the Minnesota premium security plan.<br />
         		<br />
         		<a id="bill.1.15.0"></a><a id="pl.12.3"></a><var>12.3</var>&#160;&#160;&#160;&#160;Sec. 15. <b>MINNESOTA PREMIUM SECURITY PLAN FUNDING.</b><br />
         		<a id="pl.12.4"></a><var>12.4</var>(a) The Minnesota Comprehensive Health Association shall fund the operational and
         <br />
         		<a id="pl.12.5"></a><var>12.5</var>administrative costs and reinsurance payments of the Minnesota security plan and association
         <br />
         		<a id="pl.12.6"></a><var>12.6</var>using the following amounts deposited in the premium security plan account in Minnesota
         <br />
         		<a id="pl.12.7"></a><var>12.7</var>Statutes, section 62E.25, subdivision 1, in the following order:<br />
         		<a id="pl.12.8"></a><var>12.8</var>(1) any federal funding available;<br />
         		<a id="pl.12.9"></a><var>12.9</var>(2) funds deposited under article 1, sections 12 and 13;<br />
         		<a id="pl.12.10"></a><var>12.10</var>(3) any state funds from the health care access fund; and<br />
         		<a id="pl.12.11"></a><var>12.11</var>(4) any state funds from the general fund.<br />
         		<a id="pl.12.12"></a><var>12.12</var>(b) The association shall transfer from the premium security plan account any general
         <br />
         		<a id="pl.12.13"></a><var>12.13</var>fund amount not used for the Minnesota premium security plan by June 30, 2021, to
         the <br />
         		<a id="pl.12.14"></a><var>12.14</var>commissioner of commerce. Any amount transferred to the commissioner of commerce <br />
         		<a id="pl.12.15"></a><var>12.15</var>shall be deposited in the general fund.<br />
         		<a id="pl.12.16"></a><var>12.16</var>(c) The association shall transfer from the premium security plan account any health
         <br />
         		<a id="pl.12.17"></a><var>12.17</var>care access fund amount not used for the Minnesota premium security plan by June 30,
         <br />
         		<a id="pl.12.18"></a><var>12.18</var>2021, to the commissioner of commerce. Any amount transferred to the commissioner
         of <br />
         		<a id="pl.12.19"></a><var>12.19</var>commerce shall be deposited in the health care access fund in Minnesota Statutes,
         section <br />
         		<a id="pl.12.20"></a><var>12.20</var>16A.724.<br />
         		<a id="pl.12.21"></a><var>12.21</var>(d) The Minnesota Comprehensive Health Association may not spend more than <br />
         		<a id="pl.12.22"></a><var>12.22</var>$271,000,000 for benefit year 2018 and not more than $271,000,000 for benefit year
         2019 <br />
         		<a id="pl.12.23"></a><var>12.23</var>for the operational and administrative costs of, and reinsurance payments under, the
         <br />
         		<a id="pl.12.24"></a><var>12.24</var>Minnesota premium security plan.<br />
         		<br />
         		<a id="bill.1.16.0"></a><a id="pl.12.25"></a><var>12.25</var>&#160;&#160;&#160;&#160;Sec. 16. <b>TRANSFERS.</b><br />
         		<a id="pl.12.26"></a><var>12.26</var>(a) The commissioner of management and budget shall transfer $200,000,000 in fiscal
         <br />
         		<a id="pl.12.27"></a><var>12.27</var>year 2018 and $200,000,000 in fiscal year 2019 from the health care access fund to
         the <br />
         		<a id="pl.12.28"></a><var>12.28</var>premium security plan account in Minnesota Statutes, section 62E.25, subdivision 1.
         This <br />
         		<a id="pl.12.29"></a><var>12.29</var>is a onetime transfer.<br />
         		<a id="pl.13.1"></a><var>13.1</var>(b) The commissioner of management and budget shall transfer $71,000,000 in fiscal
         <br />
         		<a id="pl.13.2"></a><var>13.2</var>year 2018 and $71,000,000 in fiscal year 2019 from the general fund to the premium
         security <br />
         		<a id="pl.13.3"></a><var>13.3</var>plan account in Minnesota Statutes, section 62E.25, subdivision 1. This is a onetime
         transfer.<br />
         		<a id="pl.13.4"></a><var>13.4</var><b>EFFECTIVE DATE.</b>This section is effective upon federal approval of the state <br />
         		<a id="pl.13.5"></a><var>13.5</var>innovation request in article 1, section 8. The commissioner of commerce shall inform
         the <br />
         		<a id="pl.13.6"></a><var>13.6</var>revisor of statutes when federal approval is obtained.<br />
         		<br />
         		<a id="bill.1.17.0"></a><a id="pl.13.7"></a><var>13.7</var>&#160;&#160;&#160;&#160;Sec. 17. <b>TRANSFER; 2018.</b><br />
         		<a id="pl.13.8"></a><var>13.8</var>The commissioner of management and budget shall transfer $750,000 in fiscal year 2018
         <br />
         		<a id="pl.13.9"></a><var>13.9</var>from the health care access fund to the premium security plan account in Minnesota
         Statutes, <br />
         		<a id="pl.13.10"></a><var>13.10</var>section 62E.25, subdivision 1. This is a onetime transfer.<br />
         		<br />
         		<a id="bill.1.18.0"></a><a id="pl.13.11"></a><var>13.11</var>&#160;&#160;&#160;&#160;Sec. 18. <b>APPROPRIATION.</b><br />
         		<a id="pl.13.12"></a><var>13.12</var>$155,000 in fiscal year 2018 is appropriated from the general fund to the commissioner
         <br />
         		<a id="pl.13.13"></a><var>13.13</var>of commerce to prepare and submit the state innovation waiver in article 1, section
         8.<br />
         		<br />
         		<a id="bill.1.19.0"></a><a id="pl.13.14"></a><var>13.14</var>&#160;&#160;&#160;&#160;Sec. 19. <b>EFFECTIVE DATE.</b><br />
         		<a id="pl.13.15"></a><var>13.15</var>Sections 1 to 15, 17, and 18 are effective the day following final enactment.<br />
         		<br />
         		<a id="bill.2.0.0"></a><div class="xtend_ce"><a id="pl.13.16"></a><var>13.16</var><b>ARTICLE 2</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.13.17"></a><var>13.17</var><b>HEALTH POLICY</b><br />
            		
         </div><br />
         		<a id="bill.2.1.0"></a><a id="pl.13.18"></a><var>13.18</var>&#160;&#160;&#160;&#160;Section 1. Minnesota Statutes 2016, section 62K.10, is amended by adding a subdivision <br />
         		<a id="pl.13.19"></a><var>13.19</var>to read:<br />
         		<a id="pl.13.20"></a><var>13.20</var>&#160;&#160;&#160;&#160;Subd. 1a. <b>Health care provider system access.</b> For those counties in which a health <br />
         		<a id="pl.13.21"></a><var>13.21</var>carrier actively markets an individual health plan, the health carrier must offer,
         in those <br />
         		<a id="pl.13.22"></a><var>13.22</var>same counties, at least one individual health plan with a provider network that includes
         <br />
         		<a id="pl.13.23"></a><var>13.23</var>in-network access to more than a single health care provider system. This subdivision
         is <br />
         		<a id="pl.13.24"></a><var>13.24</var>applicable only for the year in which the health carrier actively markets an individual
         health <br />
         		<a id="pl.13.25"></a><var>13.25</var>plan.<br />
         		<a id="pl.13.26"></a><var>13.26</var><b>EFFECTIVE DATE.</b>This section is effective January 1, 2018, and applies to individual <br />
         		<a id="pl.13.27"></a><var>13.27</var>health plans offered, issued, or renewed on or after that date.<br />
         		<br />
         		<a id="bill.2.2.0"></a><a id="pl.13.28"></a><var>13.28</var>&#160;&#160;&#160;&#160;Sec. 2. Laws 2017, chapter 2, article 1, section 1, subdivision 3, is amended to read:<br />
         		<a id="pl.13.29"></a><var>13.29</var>&#160;&#160;&#160;&#160;Subd. 3. <b>Eligible individual.</b> "Eligible individual" means a Minnesota resident who:<br />
         		<a id="pl.14.1"></a><var>14.1</var>(1) is not receiving a an advance premium tax credit under Code of Federal Regulations, <br />
         		<a id="pl.14.2"></a><var>14.2</var>title 26, section 1.36B-2, as of the date in a month in which their coverage is effectuated <br />
         		<a id="pl.14.3"></a><var>14.3</var>effective;<br />
         		<a id="pl.14.4"></a><var>14.4</var>(2) is not enrolled in public program coverage under Minnesota Statutes, section <br />
         		
         <statute_ref><a id="pl.14.5"></a><var>14.5</var>256B.055
         </statute_ref>, or 
         <statute_ref>256L.04</statute_ref>; and<br />
         		<a id="pl.14.6"></a><var>14.6</var>(3) purchased an individual health plan from a health carrier in the individual market.<br />
         		<a id="pl.14.7"></a><var>14.7</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from January 27, 2017.<br />
         		<br />
         		<a id="bill.2.3.0"></a><a id="pl.14.8"></a><var>14.8</var>&#160;&#160;&#160;&#160;Sec. 3. Laws 2017, chapter 2, article 1, section 2, subdivision 4, is amended to read:<br />
         		<a id="pl.14.9"></a><var>14.9</var>&#160;&#160;&#160;&#160;Subd. 4. <b>Data practices.</b> (a) The definitions in Minnesota Statutes, section 
         <statute_ref>13.02</statute_ref>, apply <br />
         		<a id="pl.14.10"></a><var>14.10</var>to this subdivision.<br />
         		<a id="pl.14.11"></a><var>14.11</var>(b) Government data on an enrollee or health carrier under this section are private
         data <br />
         		<a id="pl.14.12"></a><var>14.12</var>on individuals or nonpublic data, except that the total reimbursement requested by
         a health <br />
         		<a id="pl.14.13"></a><var>14.13</var>carrier and the total state payment to the health carrier are public data.<br />
         		<a id="pl.14.14"></a><var>14.14</var>(c) Notwithstanding Minnesota Statutes, section 
         <statute_ref>138.17</statute_ref>, not public government data on <br />
         		<a id="pl.14.15"></a><var>14.15</var>an enrollee or health carrier under this section must be destroyed by June 30, 2018,
         or upon <br />
         		<a id="pl.14.16"></a><var>14.16</var>completion by the legislative auditor of the audits required by section 3, whichever
         is later. <br />
         		<a id="pl.14.17"></a><var>14.17</var>This paragraph does not apply to data maintained by the legislative auditor.<br />
         		<a id="pl.14.18"></a><var>14.18</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from January 27, 2017.<br />
         		<br />
         		<a id="bill.2.4.0"></a><a id="pl.14.19"></a><var>14.19</var>&#160;&#160;&#160;&#160;Sec. 4. Laws 2017, chapter 2, article 1, section 2, is amended by adding a subdivision to
         <br />
         		<a id="pl.14.20"></a><var>14.20</var>read:<br />
         		<a id="pl.14.21"></a><var>14.21</var>&#160;&#160;&#160;&#160;Subd. 5. <b>Data sharing.</b> (a) Notwithstanding any law to the contrary, government entities <br />
         		<a id="pl.14.22"></a><var>14.22</var>are permitted to share or disseminate data as follows:<br />
         		<a id="pl.14.23"></a><var>14.23</var>(1) the commissioner of human services and the board of directors of MNsure must <br />
         		<a id="pl.14.24"></a><var>14.24</var>share data on public program enrollment under Minnesota Statutes, sections 256B.055
         and <br />
         		<a id="pl.14.25"></a><var>14.25</var>256L.04, as well as data on an enrollee's receipt of a premium tax credit under Code
         of <br />
         		<a id="pl.14.26"></a><var>14.26</var>Federal Regulations, title 26, section 1.36B-2, with the commissioner of management
         and <br />
         		<a id="pl.14.27"></a><var>14.27</var>budget; and<br />
         		<a id="pl.14.28"></a><var>14.28</var>(2) the commissioner of management and budget must disseminate data on an enrollee's
         <br />
         		<a id="pl.14.29"></a><var>14.29</var>public program coverage enrollment under Minnesota Statutes, sections 256B.055 and
         <br />
         		<a id="pl.14.30"></a><var>14.30</var>256L.04, to health carriers to the extent the commissioner determines is necessary
         for <br />
         		<a id="pl.15.1"></a><var>15.1</var>determining the enrollee's eligibility for the premium subsidy program authorized
         by this <br />
         		<a id="pl.15.2"></a><var>15.2</var>act.<br />
         		<a id="pl.15.3"></a><var>15.3</var>(b) Data shared under this subdivision may be collected, stored, or used only for
         the <br />
         		<a id="pl.15.4"></a><var>15.4</var>purposes of administration of the premium subsidy program authorized by this act and
         may <br />
         		<a id="pl.15.5"></a><var>15.5</var>not be further shared or disseminated except as otherwise provided by law.<br />
         		<a id="pl.15.6"></a><var>15.6</var>(c) By June 30, 2018, a health carrier must destroy any data it received pursuant
         to this <br />
         		<a id="pl.15.7"></a><var>15.7</var>subdivision.<br />
         		<a id="pl.15.8"></a><var>15.8</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from January 27, 2017.<br />
         		<br />
         		<a id="bill.2.5.0"></a><a id="pl.15.9"></a><var>15.9</var>&#160;&#160;&#160;&#160;Sec. 5. Laws 2017, chapter 2, article 1, section 3, is amended to read:<br />
         		<a id="pl.15.10"></a><var>15.10</var>&#160;&#160;&#160;&#160;Sec. 3. <b>AUDITS.</b><br />
         		<a id="pl.15.11"></a><var>15.11</var>(a) The legislative auditor shall conduct audits of the health carriers' supporting
         data, as <br />
         		<a id="pl.15.12"></a><var>15.12</var>prescribed by the commissioner, to determine whether payments align with criteria
         <br />
         		<a id="pl.15.13"></a><var>15.13</var>established in sections 1 and 2. The commissioner of human services shall provide
         data as <br />
         		<a id="pl.15.14"></a><var>15.14</var>necessary to the legislative auditor to complete the audit. The commissioner shall
         withhold <br />
         		<a id="pl.15.15"></a><var>15.15</var>or charge back payments to the health carriers to the extent they do not align with
         the criteria <br />
         		<a id="pl.15.16"></a><var>15.16</var>established in sections 1 and 2, as determined by the audit.<br />
         		<a id="pl.15.17"></a><var>15.17</var>(b) The legislative auditor shall audit the extent to which health carriers provided
         premium <br />
         		<a id="pl.15.18"></a><var>15.18</var>subsidies to persons meeting the residency and other eligibility requirements specified
         in <br />
         		<a id="pl.15.19"></a><var>15.19</var>section 1, subdivision 3. The legislative auditor shall report to the commissioner
         the amount <br />
         		<a id="pl.15.20"></a><var>15.20</var>of premium subsidies provided by each health carrier to persons not eligible for a
         premium <br />
         		<a id="pl.15.21"></a><var>15.21</var>subsidy. The commissioner, in consultation with the commissioners of commerce and
         health <br />
         		<a id="pl.15.22"></a><var>15.22</var>human services, shall develop and implement a process to recover from health carriers the <br />
         		<a id="pl.15.23"></a><var>15.23</var>amount of premium subsidies received for enrollees determined to be ineligible for
         premium <br />
         		<a id="pl.15.24"></a><var>15.24</var>subsidies by the legislative auditor. The legislative auditor, when conducting the
         required <br />
         		<a id="pl.15.25"></a><var>15.25</var>audit, and the commissioner, when determining the amount of premium subsidy to be
         <br />
         		<a id="pl.15.26"></a><var>15.26</var>recovered, may take into account the extent to which a health carrier makes use of
         the <br />
         		<a id="pl.15.27"></a><var>15.27</var>Minnesota eligibility system, as defined in Minnesota Statutes, section 
         <statute_ref>62V.055, subdivision <br />
            		<a id="pl.15.28"></a><var>15.28</var>1
         </statute_ref>.<br />
         		<a id="pl.15.29"></a><var>15.29</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from January 27, 2017.<br />
         		<br />
         		<a id="bill.2.6.0"></a><a id="pl.15.30"></a><var>15.30</var>&#160;&#160;&#160;&#160;Sec. 6. Laws 2017, chapter 2, article 2, section 13, the effective date, is amended to read:<br />
         		<a id="pl.15.31"></a><var>15.31</var><b>EFFECTIVE DATE.</b>This section is effective 90 days following final enactment January <br />
         		<a id="pl.15.32"></a><var>15.32</var>1, 2018, and applies to provider services provided on or after that date.<br />
         		<a id="pl.16.1"></a><var>16.1</var><b>EFFECTIVE DATE.</b>This section is effective retroactively from January 27, 2017."<br />
         		<a id="pl.16.2"></a><var>16.2</var>Delete the title and insert:<br />
         		
         <div class="xtend_ce"><a id="pl.16.3"></a><var>16.3</var>"A bill for an act<br />
            		
         </div><a id="pl.16.4"></a><var>16.4</var>relating to insurance; health; creating the Minnesota premium security plan; <br />
         		<a id="pl.16.5"></a><var>16.5</var>providing funding; establishing a legislative working group; regulating health care
         <br />
         		<a id="pl.16.6"></a><var>16.6</var>provider system access; modifying premium subsidy program provisions; <br />
         		<a id="pl.16.7"></a><var>16.7</var>appropriating money;amending Minnesota Statutes 2016, sections 62E.10, <br />
         		<a id="pl.16.8"></a><var>16.8</var>subdivision 2; 62K.10, by adding a subdivision; Laws 2013, chapter 9, section 15;
         <br />
         		<a id="pl.16.9"></a><var>16.9</var>Laws 2017, chapter 2, article 1, sections 1, subdivision 3; 2, subdivision 4, by <br />
         		<a id="pl.16.10"></a><var>16.10</var>adding a subdivision; 3; article 2, section 13; proposing coding for new law in <br />
         		<a id="pl.16.11"></a><var>16.11</var>Minnesota Statutes, chapter 62E."<br />
         		
         <table>
            <col width="50px"></col>
            <col width="252px"></col>
            <col width="42px"></col>
            <col width="252px"></col>
            <tr>
               <td><a id="pl.17.1"></a><var>17.1</var><br />
                  		
               </td>
               <td colspan="3">We request the adoption of this report and repassage of the bill.<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.17.2"></a><var>17.2</var><br />
                  		
               </td>
               <td>House Conferees:<br />
                  		<span width="2em"></span></td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.17.3"></a><var>17.3</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.17.4"></a><var>17.4</var><br />
                  		
               </td>
               <td>Greg Davids<br />
                  		
               </td>
               <td></td>
               <td>Joe Hoppe<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.17.5"></a><var>17.5</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.17.6"></a><var>17.6</var><br />
                  		
               </td>
               <td>Matt Dean<br />
                  		
               </td>
               <td></td>
               <td>Joe Schomacker<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.17.7"></a><var>17.7</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.17.8"></a><var>17.8</var><br />
                  		
               </td>
               <td>Laurie Halverson<br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.17.9"></a><var>17.9</var><br />
                  		
               </td>
               <td>Senate Conferees:<br />
                  		<span width="2em"></span></td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.17.10"></a><var>17.10</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.17.11"></a><var>17.11</var><br />
                  		
               </td>
               <td>Gary H. Dahms<br />
                  		
               </td>
               <td></td>
               <td>Michelle R. Benson<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.17.12"></a><var>17.12</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.17.13"></a><var>17.13</var><br />
                  		
               </td>
               <td>Mary Kiffmeyer<br />
                  		
               </td>
               <td></td>
               <td>Jim Abeler<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.17.14"></a><var>17.14</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.17.15"></a><var>17.15</var><br />
                  		
               </td>
               <td>Tony Lourey<br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
         </table>
      </div>