SF 714

as introduced - 87th Legislature (2011 - 2012) Posted on 02/23/2012 09:11am

A bill for an act
relating to human services; transferring certain excess health plan revenues to the
general fund; amending Minnesota Statutes 2010, section 256B.69, by adding a
subdivision.

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

Section 1.

Minnesota Statutes 2010, section 256B.69, is amended by adding a
subdivision to read:

new text begin Subd. 5l. new text end

new text begin Limits on net income and administrative costs; enabling support of
nursing facilities. new text end

new text begin (a) Notwithstanding any other law to the contrary, the total monthly
net income received by a managed care plan for providing covered services under public
programs must not exceed six percent of the total monthly revenues the managed care
plan receives from the program. For purposes of this paragraph, "net income" means total
revenues received by the managed care plan under the program minus expenses and other
adjustments, all as required to be defined for purposes of the managed care plan's annual
Statement of Revenue, Expenses, and Net Income, prepared using the appropriate National
Association of Insurance Commissioners Blank and related instructions for health
maintenance organizations, as required and amended by Minnesota Rules, part 4685.1940.
The managed care plan shall refund any amounts of net monthly income in excess of six
percent to the commissioner, no later than 60 days after the end of each three-month period.
new text end

new text begin (b) For services rendered under paragraph (a), allowable administrative costs for a
managed care plan are the per-enrollee dollar amount allowed in 2010.
new text end

new text begin (c) The commissioner shall deposit 100 percent of savings in costs to the state
achieved under this subdivision to the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

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