SF 1905

2nd Engrossment - 86th Legislature (2009 - 2010) Posted on 04/12/2010 12:26pm

A bill for an act
relating to insurance; establishing a small group market working group; requiring
a report.

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

Section 1. new text begin SMALL GROUP MARKET WORKING GROUP.
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new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin (a) The commissioner of commerce shall convene a
working group to study and report on the options available to increase rate predictability
and stability for groups of more than 50 employees. Members of the working group
shall include:
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new text begin (1) four representatives from the Minnesota Council of Health Plans;
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new text begin (2) two representatives from the Minnesota Association of Health Underwriters;
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new text begin (3) two representatives from the Insurance Federation of Minnesota;
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new text begin (4) a representative from the Minnesota Chamber of Commerce;
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new text begin (5) a representative from the National Federation of Independent
Businesses-Minnesota;
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new text begin (6) a representative from employers whose businesses employ fewer than 100
full-time employees; and
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new text begin (7) a representative from employees of companies that employ fewer than 100
full-time employees.
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new text begin (b) The organizations listed in paragraph (a), clauses (1) through (5), must name
their representatives to the commissioner of commerce no later than July 1, 2010. The
commissioner of commerce must appoint individuals as listed in paragraph (a), clauses
(6) and (7), no later than July 15, 2010.
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new text begin Subd. 2. new text end

new text begin Duties; report. new text end

new text begin (a) The working group shall conduct a study analyzing the
implications of modifications to the existing small employer market as well as to groups of
more than 50 employees. Topics to be addressed in the study include, but are not limited to:
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new text begin (1) implications of creating group rating regulation for firms with 51 to 100
employees, separate from small group rating regulation;
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new text begin (2) adverse selection issues and the effects of a significant risk of outliers on
different group sizes;
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new text begin (3) administrative costs for employers, brokers, and health plans;
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new text begin (4) restrictions on product flexibility;
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new text begin (5) migration of employers from the fully insured market to the self-insured market;
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new text begin (6) implications on revenue derived from premium taxes, Minnesota Comprehensive
Health Association surcharge, and Medicaid surcharge;
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new text begin (7) implications of a change in the existing small group size on the large group
market;
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new text begin (8) limitations on underwriting and rating requirements, and limitations on renewal,
enrollment methodologies, and processes; and
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new text begin (9) implications of federal health care reform.
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new text begin (b) By February 1, 2011, the commissioner of commerce shall submit a report on the
findings of the working group, including proposed legislation, if any, to the chairs and
ranking minority members of the senate and house of representatives committees with
primary jurisdiction over insurance.
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new text begin Subd. 3. new text end

new text begin Administration. new text end

new text begin (a) The commissioner of commerce or the commissioner's
designee shall convene the first meeting of the working group no later than August 1, 2010.
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new text begin (b) The commissioner shall provide assistance with research or background
information for the working group within the existing agency budget.
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new text begin (c) The working group expires June 30, 2011, or upon submission of the report
required under subdivision 2, whichever is earlier.
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