SF 950

as introduced - 87th Legislature (2011 - 2012) Posted on 02/23/2012 09:31am

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. new text end

new text begin (a) Notwithstanding any
other law to the contrary, the total annual net income received by a managed care plan for
providing covered services under medical assistance or MinnesotaCare must not exceed
six percent of the total annual revenues the 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, 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 annual income in excess of six percent to the commissioner, no later than
the June 30 that follows the contract year.
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) For purposes of this subdivision, revenues and net income exclude amounts
derived from or attributable to Medicare-related coverage, as defined under section
62A.3099, subdivision 17.
new text end

new text begin (d) 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