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HF 5

4th Engrossment - 90th Legislature (2017 - 2018) Posted on 05/21/2017 03:03pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to insurance; health; regulating certain data practices of the premium
subsidy program; creating a state-operated reinsurance program; appropriating
money;amending Minnesota Statutes 2016, sections 62E.10, subdivision 2; 62E.11,
subdivisions 5, 6; 297I.05, subdivisions 5, 13; Laws 2017, chapter 2, article 1,
section 2, subdivision 4; proposing coding for new law in Minnesota Statutes,
chapter 62E; repealing Laws 2013, chapter 9, section 15.

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

Section 1.

Minnesota Statutes 2016, section 62E.10, subdivision 2, is amended to read:


Subd. 2.

Board of directors; organization.

new text begin (a) For purposes of this subdivision: (1)
"contributing member" means a contributing member or an eligible health carrier, as defined
in section 62E.22, subdivision 8; and (2) "plan enrollee" means a plan enrollee or an enrollee
in an individual health plan, as defined in section 62E.22, subdivision 9.
new text end

new text begin (b) new text endThe board of directors of the association shall be made up of eleven members as
follows: six directors selected by contributing members, subject to approval by the
commissioner, one of which must be a health actuary; five public directors selected by the
commissioner, at least two of whom must be plan enrollees, two of whom are covered under
an individual plan deleted text beginsubject to assessment under section 62E.11deleted text end or group plan offered by an
employer deleted text beginsubject to assessment under section 62E.11deleted text end, and one of whom must be a licensed
insurance agent. At least two of the public directors must reside outside of the seven-county
metropolitan area. In determining voting rights at members' meetings, each member shall
be entitled to vote in person or proxy. The vote shall be a weighted vote based upon the
member's cost of self-insurance, accident and health insurance premium, subscriber contract
charges, health maintenance contract payment, or community integrated service network
payment derived from or on behalf of Minnesota residents in the previous calendar year,
as determined by the commissioner. In approving directors of the board, the commissioner
shall consider, among other things, whether all types of members are fairly represented.
Directors selected by contributing members may be reimbursed from the money of the
association for expenses incurred by them as directors, but shall not otherwise be
compensated by the association for their services. The costs of conducting meetings of the
association and its board of directors shall be borne by members of the association.

Sec. 2.

Minnesota Statutes 2016, section 62E.11, subdivision 5, is amended to read:


Subd. 5.

Allocation of losses.

new text begin (a) For purposes of this subdivision: (1) "contributing
member" means a contributing member or an eligible health carrier, as defined in section
62E.22, subdivision 8; and (2) "plan enrollee" means a plan enrollee or an enrollee in an
individual health plan, as defined in section 62E.22, subdivision 9.
new text end

new text begin (b) new text endEach contributing member of the association shall share the losses due to claims
expenses of the comprehensive health insurance plan for plans issued or approved for
issuance by the associationdeleted text begin, anddeleted text endnew text begin.
new text end

new text begin (c) Each contributing membernew text end shall share in the operating and administrative expenses
incurred or estimated to be incurred by the association incident to the conduct of its affairs.
Claims expenses of the state plan which exceed the premium payments allocated to the
payment of benefits shall be the liability of the contributing members. Contributing members
shall share in the claims expense of the state plan and operating and administrative expenses
of the association in an amount equal to the ratio of the contributing member's total accident
and health insurance premium, received from or on behalf of Minnesota residents as divided
by the total accident and health insurance premium, received by all contributing members
from or on behalf of Minnesota residents, as determined by the commissioner. Payments
made by the state to a contributing member for medical assistance or MinnesotaCare services
according to chapters 256 and 256B shall be excluded when determining a contributing
member's total premium.

Sec. 3.

Minnesota Statutes 2016, section 62E.11, subdivision 6, is amended to read:


Subd. 6.

Member assessments.

The association shall make an annual determination of
each contributing member's liability, if any, and may make an annual fiscal year end
assessment if necessary. The association may also, subject to the approval of the
commissioner, provide for interim assessments against the contributing members whose
aggregate assessments comprised a minimum of 90 percent of the most recent prior annual
assessment, in the event that the association deems that methodology to be the most
administratively efficient and cost-effective means of assessment, and as may be necessary
to assure the financial capability of the association in meeting the incurred or estimated
claims expenses of the state plan and operating and administrative expenses of the association
until the association's next annual fiscal year end assessment. Payment of an assessment
shall be due within 30 days of receipt by a contributing member of a written notice of a
fiscal year end or interim assessment. Failure by a contributing member to tender to the
association the assessment within 30 days shall be grounds for termination of the contributing
member's membershipnew text begin and ability to offer, issue, or renew policies of accident and health
or sickness insurance policies in this state
new text end. A contributing member which ceases to do
accident and health insurance business within the state shall remain liable for assessments
through the calendar year during which accident and health insurance business ceased. The
association may decline to levy an assessment against a contributing member if the
assessment, as determined herein, would not exceed ten dollars.

Sec. 4.

new text begin [62E.21] TITLE.
new text end

new text begin Sections 62E.21 to 62E.25 may be cited as the "Minnesota Premium Security Plan Act."
new text end

Sec. 5.

new text begin [62E.22] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin For the purposes of sections 62E.21 to 62E.25, the terms
defined in this section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Affordable Care Act. new text end

new text begin "Affordable Care Act" means the federal act as defined
in section 62A.011, subdivision 1a.
new text end

new text begin Subd. 3. new text end

new text begin Attachment point. new text end

new text begin "Attachment point" means an amount as provided in section
62E.23, subdivision 2, paragraph (b).
new text end

new text begin Subd. 4. new text end

new text begin Benefit year. new text end

new text begin "Benefit year" means the calendar year for which an eligible
health carrier provides coverage through an individual health plan.
new text end

new text begin Subd. 5. new text end

new text begin Board. new text end

new text begin "Board" means the board of directors of the Minnesota Comprehensive
Health Association created under section 62E.10.
new text end

new text begin Subd. 6. new text end

new text begin Coinsurance rate. new text end

new text begin "Coinsurance rate" means the rate as provided in section
62E.23, subdivision 2, paragraph (c).
new text end

new text begin Subd. 7. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of commerce.
new text end

new text begin Subd. 8. new text end

new text begin Eligible health carrier. new text end

new text begin "Eligible health carrier" means all of the following
that offer individual health plans and incur claims costs for an individual enrollee's covered
benefits in the applicable benefit year:
new text end

new text begin (1) an insurance company licensed under chapter 60A to offer, sell, or issue a policy of
accident and sickness insurance as defined in section 62A.01;
new text end

new text begin (2) a nonprofit health service plan corporation operating under chapter 62C; or
new text end

new text begin (3) a health maintenance organization operating under chapter 62D.
new text end

new text begin Subd. 9. new text end

new text begin Individual health plan. new text end

new text begin "Individual health plan" means a health plan as defined
in section 62A.011, subdivision 4, that is not a grandfathered plan as defined in section
62A.011, subdivision 1b.
new text end

new text begin Subd. 10. new text end

new text begin Individual market. new text end

new text begin "Individual market" means the market for individual
health insurance coverage as defined in section 62A.011, subdivision 5.
new text end

new text begin Subd. 11. new text end

new text begin Minnesota Comprehensive Health Association or association. new text end

new text begin "Minnesota
Comprehensive Health Association" or "association" means the association as defined in
section 62E.02, subdivision 14.
new text end

new text begin Subd. 12. new text end

new text begin Minnesota premium security plan or plan. new text end

new text begin "Minnesota premium security
plan" or "plan" means the state-based reinsurance program created under this act.
new text end

new text begin Subd. 13. new text end

new text begin Payment parameters. new text end

new text begin "Payment parameters" means the attachment point,
reinsurance cap, and coinsurance rate for the plan.
new text end

new text begin Subd. 14. new text end

new text begin Reinsurance cap. new text end

new text begin "Reinsurance cap" means the threshold amount as provided
in section 62E.23, subdivision 2, paragraph (d).
new text end

new text begin Subd. 15. new text end

new text begin Reinsurance payments. new text end

new text begin "Reinsurance payments" means an amount paid by
the association to an eligible health carrier under the plan.
new text end

Sec. 6.

new text begin [62E.23] MINNESOTA PREMIUM SECURITY PLAN.
new text end

new text begin Subdivision 1. new text end

new text begin Administration of plan. new text end

new text begin (a) The association shall administer the plan.
new text end

new text begin (b) The association may apply for any available federal funding for the plan. All funds
received by or appropriated to the association shall be deposited in the premium security
plan account in section 62E.25.
new text end

new text begin (c) The association must collect data from an eligible health carrier that are necessary
to determine reinsurance payments, according to the data requirements under subdivision
5.
new text end

new text begin (d) The board must not use any funds allocated to the plan for staff retreats, promotional
giveaways, excessive executive compensation, or promotion of federal or state legislative
or regulatory changes.
new text end

new text begin (e) For each applicable benefit year, the association must notify eligible health carriers
of reinsurance payments to be made for the applicable benefit year no later than June 30 of
the year following the applicable benefit year.
new text end

new text begin (f) On a quarterly basis during the applicable benefit year, the association must provide
each eligible health carrier with the calculation of total reinsurance payment requests.
new text end

new text begin (g) By August 15 of the year following the applicable benefit year, the association must
disburse all applicable reinsurance payments to an eligible health carrier.
new text end

new text begin Subd. 2. new text end

new text begin Payment parameters. new text end

new text begin (a) The board must design and adjust the payment
parameters to ensure the payment parameters:
new text end

new text begin (1) will stabilize or reduce premium rates in the individual market;
new text end

new text begin (2) will increase participation in the individual market;
new text end

new text begin (3) mitigate the impact high-risk individuals have on premium rates in the individual
market;
new text end

new text begin (4) take into account any federal funding available for the plan;
new text end

new text begin (5) take into account the total amount available to fund the plan; and
new text end

new text begin (6) for benefit year 2019 and thereafter, include cost savings mechanisms related to the
management of health care services.
new text end

new text begin (b) The attachment point for the plan is the threshold amount for claims costs incurred
by an eligible health carrier for an enrolled individual's covered benefits in a benefit year,
beyond which the claims costs for benefits are eligible for reinsurance payments. The
attachment point shall be set by the board at $50,000 or more, but not exceeding the
reinsurance cap.
new text end

new text begin (c) The coinsurance rate for the plan is the rate at which the association will reimburse
an eligible health carrier for claims incurred for an enrolled individual's covered benefits
in a benefit year above the attachment point and below the reinsurance cap. The coinsurance
rate shall be set by the board at a rate between 50 and 70 percent.
new text end

new text begin (d) The reinsurance cap is the threshold amount for claims costs incurred by an eligible
health carrier for an enrolled individual's covered benefits, after which the claims costs for
benefits are no longer eligible for reinsurance payments. The reinsurance cap shall be set
by the board at $250,000 or less.
new text end

new text begin Subd. 3. new text end

new text begin Operation. new text end

new text begin (a) The board shall propose to the commissioner the payment
parameters for the next benefit year by January 15 of the year before the applicable benefit
year. The commissioner shall review and approve the payment parameters no later than 14
days following the board's proposal. If the commissioner fails to approve the payment
parameters within 14 days following the board's proposal, the proposed payment parameters
are final and effective.
new text end

new text begin (b) If the amount in the premium security plan account in section 62E.25 is not anticipated
to be adequate to fully fund the approved payment parameters as of July 1 of the year before
the applicable benefit year, the board, in consultation with the commissioner and the
commissioner of management and budget, shall propose payment parameters within the
available appropriations. The commissioner must permit an eligible health carrier to revise
an applicable rate filing based on the final payment parameters for the next benefit year.
new text end

new text begin Subd. 4. new text end

new text begin Calculation of reinsurance payments. new text end

new text begin (a) Each reinsurance payment must be
calculated with respect to an eligible health carrier's incurred claims costs for an individual
enrollee's covered benefits in the applicable benefit year. If the claims costs do not exceed
the attachment point, the reinsurance payment is $0. If the claims costs exceed the attachment
point, the reinsurance payment shall be calculated as the product of the coinsurance rate
and the lesser of:
new text end

new text begin (1) the claims costs minus the attachment point; or
new text end

new text begin (2) the reinsurance cap minus the attachment point.
new text end

new text begin (b) The board must ensure that reinsurance payments made to eligible health carriers do
not exceed the total amount paid by the eligible health carrier for any eligible claim. "Total
amount paid of an eligible claim" means the amount paid by the eligible health carrier based
upon the allowed amount less any deductible, coinsurance, or co-payment, as of the time
the data are submitted or made accessible under subdivision 5, paragraph (e).
new text end

new text begin Subd. 5. new text end

new text begin Eligible carrier requests for reinsurance payments. new text end

new text begin (a) An eligible health
carrier must request reinsurance payments when the eligible health carrier's claims costs
for an enrollee meet the criteria for reinsurance payments.
new text end

new text begin (b) An eligible health carrier must apply the payment parameters when calculating
amounts the health carrier is eligible to receive from the plan.
new text end

new text begin (c) An eligible health carrier must make requests for reinsurance payments in accordance
with any requirements established by the board.
new text end

new text begin (d) An eligible health carrier must calculate the premium amount the health carrier would
have charged for the applicable benefit year if the plan was not in effect and submit this
information as part of its rate filing.
new text end

new text begin (e) In order to receive reinsurance payments, an eligible health carrier must provide the
association with access to the data within the dedicated data environment established by
the eligible health carrier under the federal risk adjustment program under United States
Code, title 42, section 18063. Eligible health carriers must submit an attestation to the board
asserting compliance with the dedicated data environments, data requirements, establishment
and usage of masked enrollee identification numbers, and data submission deadlines.
new text end

new text begin (f) An eligible health carrier must provide the access described in paragraph (e) for the
applicable benefit year by April 30 of each year of the year following the end of the
applicable benefit year.
new text end

new text begin (g) An eligible health carrier must maintain documents and records, whether paper,
electronic, or in other media, sufficient to substantiate the requests for reinsurance payments
made pursuant to this section for a period of at least six years. An eligible health carrier
must also make those documents and records available upon request from the commissioner
for purposes of verification, investigation, audit, or other review of reinsurance payment
requests.
new text end

new text begin (h) An eligible health carrier may follow the appeals procedure under section 62E.10,
subdivision 2a.
new text end

new text begin Subd. 6. new text end

new text begin Audits and reports of eligible health carriers. new text end

new text begin (a) The association may audit
an eligible health carrier to assess its compliance with the requirements of this act. The
eligible health carrier must cooperate with an audit. If an audit results in a proposed finding
of material weakness or significant deficiency with respect to compliance with any
requirement of this act, the eligible health carrier may respond to the draft audit report within
30 days of the draft audit report's issuance.
new text end

new text begin (b) Within 30 days of the issuance of the final audit report, if the final audit results in a
finding of material weakness or significant deficiency with respect to compliance with any
requirement of this act, the eligible health carrier must:
new text end

new text begin (1) provide a written corrective action plan to the association for approval;
new text end

new text begin (2) upon association approval, implement the corrective action plan described; and
new text end

new text begin (3) provide the association with documentation of the corrective actions taken.
new text end

new text begin Subd. 7. new text end

new text begin Data. new text end

new text begin Data collected, created, or maintained by the association for the purpose
of providing reinsurance payments to eligible health carriers is classified as private data on
individuals, as defined under section 13.02, subdivision 12; nonpublic data, as defined under
section 13.02, subdivision 9; or not public data, as defined under section 13.02, subdivision
8a.
new text end

Sec. 7.

new text begin [62E.24] ACCOUNTING, REPORTS, AND AUDITS OF THE
ASSOCIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Accounting. new text end

new text begin The board must keep an accounting for each benefit year
of all:
new text end

new text begin (1) funds appropriated for reinsurance payments and administrative and operational
expenses;
new text end

new text begin (2) requests for reinsurance payments received from eligible health carriers;
new text end

new text begin (3) reinsurance payments made to eligible health carriers; and
new text end

new text begin (4) administrative and operational expenses incurred for the plan.
new text end

new text begin Subd. 2. new text end

new text begin Reports. new text end

new text begin (a) The board must submit to the commissioner and make available
to the public a report summarizing the plan operations for each benefit year by posting the
summary on the Minnesota Comprehensive Health Association Web site and making the
summary otherwise available by November 1 of the year following the applicable benefit
year or 60 calendar days following the final disbursement of reinsurance payments for the
applicable benefit year, whichever is later.
new text end

new text begin (b) The board must submit a report to the standing committees of the legislature having
jurisdiction over health and human services and insurance within 60 days of the commissioner
making publicly available the final and approved premium rates, or by December 1,
whichever is later. The report must include information on what the premium increases in
the individual market will be for the next benefit year if the plan is not fully funded.
new text end

new text begin Subd. 3. new text end

new text begin Independent external audit. new text end

new text begin (a) The board must engage and cooperate with
an independent certified public accountant or CPA firm licensed or permitted under chapter
326A to perform an audit for each benefit year of the plan, in accordance with generally
accepted auditing standards. The audit must at a minimum:
new text end

new text begin (1) assess compliance with the requirements of sections 62E.21 to 62E.25; and
new text end

new text begin (2) identify any material weaknesses or significant deficiencies and address manners in
which to correct any such material weaknesses or deficiencies.
new text end

new text begin (b) The board, after receiving the completed audit, must:
new text end

new text begin (1) provide the commissioner the results of the audit;
new text end

new text begin (2) identify to the commissioner any material weakness or significant deficiency identified
in the audit and address in writing to the commissioner how the board intends to correct
any such material weakness or significant deficiency in compliance with subdivision 4; and
new text end

new text begin (3) make available to the public a summary of the results of the audit by posting the
summary on the Minnesota Comprehensive Health Association Web site and making the
summary otherwise available, including any material weakness or significant deficiency
and how the board intends to correct the material weakness or significant deficiency.
new text end

new text begin Subd. 4. new text end

new text begin Actions on audit findings. new text end

new text begin If an audit results in a finding of material weakness
or significant deficiency with respect to compliance by the association with any requirement
under sections 62E.21 to 62E.25, the board must:
new text end

new text begin (1) provide a written corrective action plan to the commissioner for approval within 60
days of the completed audit;
new text end

new text begin (2) implement the corrective action plan; and
new text end

new text begin (3) provide the commissioner with written documentation of the corrective actions taken.
new text end

Sec. 8.

new text begin [62E.25] PREMIUM SECURITY PLAN ACCOUNT.
new text end

new text begin The premium security plan account is created in the special revenue fund of the state
treasury. Funds in the account are appropriated annually to the association for the operation
of the plan. Notwithstanding section 11A.20, all investment income and all investment
losses attributable to the investment of the premium security plan account shall be credited
to the premium security plan account.
new text end

Sec. 9.

Minnesota Statutes 2016, section 297I.05, subdivision 5, is amended to read:


Subd. 5.

Health maintenance organizations, nonprofit health service plan
corporations, and community integrated service networks.

(a) A tax is imposed on health
maintenance organizations, community integrated service networks, and nonprofit health
care service plan corporations. The rate of tax is equal to one percent of gross premiums
less return premiums on all direct business received by the organization, network, or
corporation or its agents in Minnesota, in cash or otherwise, in the calendar year.

(b) The commissioner shall deposit all revenues, including penalties and interest, collected
under this chapter from health maintenance organizations, community integrated service
networks, and nonprofit health service plan corporations in the deleted text beginhealth care access funddeleted text endnew text begin
premium security plan account in section 62E.25
new text end. Refunds of overpayments of tax imposed
by this subdivision must be paid from the deleted text beginhealth care access funddeleted text endnew text begin premium security plan
account
new text end. There is annually appropriated from the deleted text beginhealth care access funddeleted text endnew text begin premium security
plan account
new text end to the commissioner the amount necessary to make any refunds of the tax
imposed under this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2017.
new text end

Sec. 10.

Minnesota Statutes 2016, section 297I.05, subdivision 13, is amended to read:


Subd. 13.

Funds deleted text begindepositeddeleted text endnew text begin credited into the premium security plan account andnew text end
intonew text begin thenew text end general fund.

new text begin(a) new text endUnless otherwise specified in this chapter, all amounts collected
by the commissioner under this chapter must be deleted text begindeposited in the general fund.deleted text endnew text begin credited as
follows:
new text end

new text begin (1) $70,000,000 in fiscal year 2018 and $70,000,000 in fiscal year 2019 and each fiscal
year thereafter must be credited to the premium security plan account in section 62E.25;
and
new text end

new text begin (2) the balance shall be credited to the general fund.
new text end

new text begin (b) The amount to be credited under paragraph (a), clause (1), is in addition to amounts
deposited in the premium security account in subdivision 5.
new text end

Sec. 11.

Laws 2017, chapter 2, article 1, section 2, subdivision 4, is amended to read:


Subd. 4.

Data practices.

(a) The definitions in Minnesota Statutes, section 13.02, apply
to this subdivision.

(b) Government data on an enrollee or health carrier under this section are private data
on individuals or nonpublic data, except that the total reimbursement requested by a health
carrier and the total state payment to the health carrier are public data.

(c) Notwithstanding Minnesota Statutes, section 138.17, government data on an enrollee
or health carrier under this section must be destroyed by June 30, 2018, or upon completion
by the legislative auditor of the audits required by section 3, whichever is later.new text begin This
paragraph does not apply to data maintained by the legislative auditor.
new text end

Sec. 12. new text beginSTATE INNOVATION WAIVER.
new text end

new text begin Subdivision 1. new text end

new text begin Submission of waiver application. new text end

new text begin The commissioner of commerce
shall apply to the secretary of Health and Human Services under United States Code, title
42, section 18052, for a state innovation waiver to implement the Minnesota premium
security plan for benefit years beginning on or after January 1, 2018, in a manner that
maximizes federal funding for the state. The waiver application submitted must ensure that,
upon implementation of the Minnesota premium security plan, eligible Minnesotans will
continue to receive advanced premium tax credits and cost-sharing reductions.
new text end

new text begin Subd. 2. new text end

new text begin Consultation. new text end

new text begin In developing the waiver application, the commissioner shall
consult with the commissioner of human services, the commissioner of health, and the
MNsure board.
new text end

new text begin Subd. 3. new text end

new text begin Application timelines; notification. new text end

new text begin The commissioner shall submit the waiver
application to the secretary of Health and Human Services on or before July 5, 2017. The
commissioner shall make a draft application available for public review and comment by
June 1, 2017. The commissioner shall notify the chairs and ranking minority members of
the legislative committees with jurisdiction over health and human services and insurance,
and the board of directors of the Minnesota Comprehensive Health Association of any
federal actions regarding the waiver request.
new text end

new text begin Subd. 4. new text end

new text begin Board review; contingent report. new text end

new text begin The board of directors of the Minnesota
Comprehensive Health Association shall review the decision of the secretary of Health and
Human Services regarding the request for a state innovation waiver. If the waiver is rejected
in whole or in part the board shall report to the chairs and ranking minority members of the
legislative committees with jurisdiction over health and human services and insurance on
the projected impact of the federal decision on the overall health insurance market and
health plan affordability. The board shall submit this report within 60 calendar days of
receipt of the federal decision.
new text end

Sec. 13. new text beginCOSTS RELATED TO IMPLEMENTATION OF THIS ACT.
new text end

new text begin A state agency that incurs administrative costs to implement any provision of this act
and does not receive an appropriation for administrative costs of this act must implement
the act within the limits of existing appropriations.
new text end

Sec. 14. new text beginPAYMENT PARAMETERS FOR 2018.
new text end

new text begin Notwithstanding any law to the contrary, the board of directors of the Minnesota
Comprehensive Health Association shall set payment parameters for benefit year 2018
within the limits of available funds no later than 30 days following the enactment of this
act or 30 days following the appropriation of funds for the Minnesota premium security
plan, whichever is later.
new text end

Sec. 15. new text beginDEPOSIT OF FUNDS.
new text end

new text begin Within ten days of the effective date of this act, the Minnesota Comprehensive Health
Association shall deposit all money, including monetary reserves, the association holds into
the premium security plan account in section 62E.25.
new text end

Sec. 16. new text beginMINNESOTA PREMIUM SECURITY PLAN FUNDING; FISCAL YEAR
2018.
new text end

new text begin The Minnesota Comprehensive Health Association shall fund the operational and
administrative costs and reinsurance payments of the Minnesota premium security plan and
association, for fiscal year 2018, using the following amounts deposited in the premium
security plan account in section 62E.25, in the following order:
new text end

new text begin (1) any federal funds available, whether through grants or otherwise;
new text end

new text begin (2) funds deposited under section 15;
new text end

new text begin (3) up to $50,000,000 of the transfer in section 18; and
new text end

new text begin (4) funds deposited under sections 9 and 10.
new text end

Sec. 17. new text beginMINNESOTA PREMIUM SECURITY PLAN FUNDING; FISCAL YEAR
2019 AND THEREAFTER.
new text end

new text begin (a) The Minnesota Comprehensive Health Association shall fund the operational and
administrative costs of the Minnesota premium security plan and association for fiscal year
2019 and every year thereafter through an assessment as provided by section 62E.11
deposited in the premium security plan account in section 62E.25.
new text end

new text begin (b) The Minnesota Comprehensive Health Association shall fund the reinsurance
payments and other plan costs of the Minnesota premium security plan and association for
fiscal year 2019 and every year thereafter using the following amounts deposited in the
premium security plan account, in the following order:
new text end

new text begin (1) any federal funds available, whether through grants or otherwise;
new text end

new text begin (2) the transfer in section 18; and
new text end

new text begin (3) funds deposited under sections 9 and 10.
new text end

Sec. 18. new text beginTRANSFER.
new text end

new text begin $80,000,000 in the 2018-2019 biennium is transferred from the health care access fund
to the premium security plan account in the special revenue fund. Up to $50,000,000 of this
amount must be transferred in fiscal year 2018. These are onetime transfers.
new text end

Sec. 19. new text begin REPEALER.
new text end

new text begin Laws 2013, chapter 9, section 15, new text end new text begin is repealed.
new text end

Sec. 20. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 8 and 10 to 19 are effective the day following final enactment.
new text end

APPENDIX

Repealed Minnesota Session Laws: H0005-4

Laws 2013, chapter 9, section 15 by Laws 2017, chapter 13, article 1, section 7

Sec. 7.

Laws 2013, chapter 9, section 15, is amended to read:


Sec. 15. MINNESOTA COMPREHENSIVE HEALTH ASSOCIATION TERMINATION.

(a) The commissioner of commerce, in consultation with the board of directors of the Minnesota Comprehensive Health Association, has the authority to develop and implement the phase-out and eventual appropriate termination of coverage provided by the Minnesota Comprehensive Health Association under Minnesota Statutes, chapter 62E. The phase-out of coverage shall begin no sooner than January 1, 2014, or upon the effective date of the operation of the Minnesota Insurance Marketplace and the ability to purchase qualified health plans through the Minnesota Insurance Marketplace, whichever is later, and shall, to the extent practicable, ensure the least amount of disruption to the enrollees' health care coverage. The member assessments established under Minnesota Statutes, section 62E.11, shall take into consideration any phase-out of coverage implemented under this section.

(b) Nothing in paragraph (a) applies to the Minnesota premium security plan, as defined in Minnesota Statutes, section 62E.21, subdivision 12.