SF 1796

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to state government; establishing the
Minnesota Health Care Purchasing Authority; requiring
a report.

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

Section 1. new text begin STATE HEALTH CARE PURCHASING AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Purchasing authority created. new text end

new text begin By December
15, 2005, the commissioner of employee relations, in
consultation with the commissioners of health, human services,
labor and industry, corrections, commerce, and administration
and the Minnesota Comprehensive Health Association board of
directors shall enter into interagency agreements regarding the
formation of the Minnesota Health Care Purchasing Authority for
the purpose of implementing a unified strategy and joint
purchasing of health care services for the state of Minnesota.
The strategy shall include implementing a process that examines
the health care purchasing decisions and coverage in terms of
cost and medical efficacy based on reliable research evidence to
ensure access to appropriate and necessary health care. By
December 15, 2006, the commissioners shall submit to the
legislature a report and proposed legislation for the creation
of the purchasing authority as a distinct agency of state
government responsible for all state purchasing of health care.
new text end

new text begin Subd. 2. new text end

new text begin Principles of state purchasing. new text end

new text begin The purchasing
authority shall prepare and submit to the governor and
legislature an annual report and plan for the unified purchasing
of health care services. The plan must:
new text end

new text begin (1) promote personal choice and responsibility;
new text end

new text begin (2) encourage and promote better health of patients and
residents of the state;
new text end

new text begin (3) provide incentives to privately based health plans and
health care delivery systems to improve efficiency and quality;
new text end

new text begin (4) use community standards and measurement methods for
determining the value of specific health care services based on
quality and performance; and
new text end

new text begin (5) separate the health care purchasing functions of state
government from those activities relating to regulation and
delivery of services, but require consistent use of uniform
quality and performance standards and methods for purchasing,
regulation, and delivery of health care services.
new text end

new text begin Subd. 3. new text end

new text begin Purchasing and coverage guidelines. new text end

new text begin The
purchasing authority shall convene a panel of health care policy
experts and health care providers to establish a process to
select evidence-based guidelines based on sound research
evidence and implement an integrated approach using these
guidelines for state government purchasing decisions and
coverage design.
new text end

new text begin Subd. 4. new text end

new text begin Public and private purchasers. new text end

new text begin (a) The
purchasing authority shall prepare and submit to the governor
and legislature by December 15, 2005, a plan for permitting
public employers, including school districts, cities, counties,
and other governmental entities; and nursing homes and other
long-term care employers to purchase a secure benefit set
through the state purchasing authority. The secure benefit set
must include the services described under subdivision 6.
new text end

new text begin (b) Notwithstanding any laws to the contrary, the
commissioner of employee relations may expand the range of
health coverage options available to purchase under the public
employees insurance program established under Minnesota
Statutes, section 43A.316, including the option to purchase the
secure benefit set as defined under subdivision 6. Under this
option, public employers, nursing homes and other long-term care
employers may purchase health coverage for their employees
through the public employees insurance program beginning January
1, 2006.
new text end

new text begin (c) The purchasing authority shall include in the plan
described in paragraph (a) a process for permitting private
employers with 49 or fewer employees and individuals to purchase
the secure benefit set through the state health care purchasing
authority beginning January 1, 2009.
new text end

new text begin Subd. 5. new text end

new text begin Common standards for state purchasing and
regulation. new text end

new text begin The purchasing authority, in consultation with all
state agencies, boards, and commissioners that have
responsibility for purchasing or for regulating individuals and
organizations that provide health coverage or deliver health
care services, shall prepare and submit to the governor and
legislature by December 15, 2006, a report and proposed
legislation that will require all state purchasing and
regulatory requirements to use common standards and measurement
methods for quality and performance.
new text end

new text begin Subd. 6. new text end

new text begin Secure benefit set development. new text end

new text begin The purchasing
authority, in consultation with a panel of health care policy
experts, shall define a secure benefit set that includes
coverage for preventive health services, as specified in
preventive services guidelines for children and adults developed
by the Institute for Clinical Systems Improvement, prescription
drug coverage, and catastrophic coverage.
new text end

new text begin Subd. 7. new text end

new text begin Special populations. new text end

new text begin In developing a plan for
the unified purchasing of health care services and a secure
benefit set, the purchasing authority must take into account the
needs of special populations, including, but not limited to,
persons who are elderly or disabled and persons with chronic
conditions.
new text end

new text begin Subd. 8. new text end

new text begin Cost and quality disclosure. new text end

new text begin The purchasing
authority, in cooperation with organizations representing
consumers, employers, physicians and other health professionals,
hospitals, long-term care facilities, health plan companies,
quality improvement organizations, research and education
institutions, and other appropriate constituencies, shall
identify and contract with a private, nonprofit organization to
serve as a statewide source of comparative information on health
care costs and quality.
new text end

Sec. 2. new text begin EFFECTIVE DATE.
new text end

new text begin Section 1 is effective July 1, 2005.
new text end