SF 1816

as introduced - 90th Legislature (2017 - 2018) Posted on 03/07/2017 09:27am

A bill for an act
relating to health care; creating a task force to review and evaluate the licensure
structure of health plan companies and other entities; appropriating money.

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

Section 1. new text begin HEALTH CARE REGULATORY REVIEW TASK FORCE.
new text end

new text begin Subdivision 1. new text end

new text begin General. new text end

new text begin (a) The Health Care Regulatory Review Task Force is convened
to review and assess the state regulatory and oversight structure for health plan companies
and other related entities, including, but not limited to, indemnity carriers licensed under
Minnesota Statutes, chapter 60A; nonprofit health service plan corporations licensed under
Minnesota Statutes, chapter 62C; health plan maintenance organizations licensed under
Minnesota Statutes, chapter 62D; community integrated service networks licensed under
Minnesota Statutes, chapter 62N; health care cooperatives organized under Minnesota
Statutes, chapter 62R; and county-based purchasing plans authorized under Minnesota
Statutes, section 256B.692.
new text end

new text begin (b) The task force shall also review and assess the regulatory standards and requirements
for each of these entities under Minnesota Statutes, chapters 62A, 62J, 62K, 62L, 62M, and
62Q.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin (a) The task force shall consist of 22 members appointed as
follows:
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new text begin (1) two members of the senate, one appointed by the majority leader, and one appointed
by the minority leader;
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new text begin (2) two members of the house of representatives, one appointed by the speaker of the
house, and one appointed by the minority leader;
new text end

new text begin (3) four members representing consumers appointed by the governor, one of whom must
be from a nonprofit organization with legal expertise representing low-income consumers;
new text end

new text begin (4) four members representing the health insurance industry, including two members
appointed by the Minnesota Council of Health Plans, one member appointed by the Insurance
Federation of Minnesota, and one member representing county-based purchasing plans
appointed by the Minnesota Association of County Health Plans;
new text end

new text begin (5) four members representing health care providers, including one member appointed
by the Minnesota Hospital Association, one member appointed by the Minnesota Medical
Association, and two members appointed by the governor to represent providers other than
hospitals and physicians;
new text end

new text begin (6) one member representing employers appointed by the Minnesota Chamber of
Commerce;
new text end

new text begin (7) one member representing the labor unions and appointed by the governor; and
new text end

new text begin (8) the commissioners of commerce, health, human services, and management and
budget, or their designees.
new text end

new text begin (b) Appointments must be made by August 1, 2017. The senate member appointed by
the majority leader of the senate shall convene the first meeting of the task force no later
than September 15, 2017. Members of the task force shall elect a chair at the first meeting.
new text end

new text begin (c) Minnesota Statutes, section 15.059, except for Minnesota Statutes, section 15.059,
subdivision 2, shall apply to the task force and to all task force member appointments, except
for the members who are commissioners.
new text end

new text begin Subd. 3. new text end

new text begin Staff. new text end

new text begin The commissioner of health shall provide staff and administrative services
for the task force. The task force may request technical support from the commissioners of
human services, commerce, and management and budget. The commissioner of health may
enter into contracts with nonprofit private entities to provide evaluation and analysis as
needed, including a legal summary and analysis of current regulatory and operational
requirements for health plan companies and other related entities, and any pertinent case
law.
new text end

new text begin Subd. 4. new text end

new text begin Duties. new text end

new text begin (a) The task force shall conduct a review and an assessment of the
current state regulatory and oversight structures for indemnity carriers, health maintenance
organizations, nonprofit health service plan corporations, preferred provider organizations,
county-based purchasers, health care cooperatives, accountable care organizations, integrated
health partnerships, health care delivery systems authorized under Minnesota Statutes,
section 256B.0755, and other related entities. The review and assessment shall be conducted
in terms of maximizing administrative efficiency and regulatory simplification and
streamlining the regulatory process while maintaining quality health outcomes, regulatory
stability, and price stability.
new text end

new text begin (b) As part of this review, the task force shall examine the various types of operational
licenses for health plan companies and the differences in the statutory and regulatory
requirements for each license, including, but not limited to, licensure requirements involving
financial solvency, tax liabilities, rate review, data and quality reporting, claims payment
practices, utilization management, provider contracts, network adequacy, geographic
accessibility, actuarial value, consumer protections, and quality assurance.
new text end

new text begin (c) As part of the evaluation of the different operational structures, the task force shall
consider the following:
new text end

new text begin (1) whether there is justification to maintain different licensure requirements when health
plan companies are becoming more operationally similar and there is an increasing degree
of uniformity required under both state and federal laws;
new text end

new text begin (2) whether the different licensure requirements create the likelihood of different standards
being applied to different health plan companies or other entities that are operationally
similar, but are regulated under different licensure and regulatory requirements, thereby
creating an uneven and arguably unfair competitive marketplace; and
new text end

new text begin (3) whether the current regulatory structure allows for the state to have sufficient oversight
of new operational health care delivery models and payment systems that have been created
or may be created in the future including, but not limited to, accountable care organizations,
integrated health partnerships, or other health care delivery systems and, if not, whether the
legislature should create a review process in order to ensure regulatory oversight.
new text end

new text begin (d) The task force shall also review the statutory provisions in Minnesota Statutes,
chapters 62A, 62C, 62D, 62L, 62M, and 62Q for redundant and unnecessary provisions and
make recommendations on whether a recodification of these chapters would create a more
uniform regulatory scheme in terms of market stability, efficiency, and simplification.
new text end

new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin The task force shall submit a report to the chairs and ranking minority
members of the legislative committees with jurisdiction over commerce and health and
human services of the results of the review and assessment and any recommendations,
including draft legislation by January 15, 2019.
new text end

new text begin Subd. 6. new text end

new text begin Expiration. new text end

new text begin The task force expires the day after submitting the report required
under subdivision 5.
new text end

Sec. 2. new text begin APPROPRIATION.
new text end

new text begin $....... is appropriated for fiscal year 2018 from the general fund to the commissioner of
health for administrative services to the Health Care Regulatory Review Task Force for any
necessary technical support from state agencies, and for contracts to provide evaluation or
analysis services as deemed necessary by the task force.
new text end