SF 1985

as introduced - 91st Legislature (2019 - 2020) Posted on 03/18/2019 02:23pm

A bill for an act
relating to health; establishing requirements for use of net earnings of nonprofit
health maintenance organizations; amending Minnesota Statutes 2018, section
62D.12, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2018, section 62D.12, is amended by adding a subdivision
to read:

new text begin Subd. 8a. new text end

new text begin Net earnings. new text end

new text begin All net earnings of a nonprofit health maintenance organization
must be devoted to the nonprofit purposes of the health maintenance organization in providing
comprehensive health care. A nonprofit health maintenance organization must not provide
for the payment, whether directly or indirectly, of any part of its net earnings to any person
for a purpose other than providing comprehensive health care, except that the health
maintenance organization may make payments to providers or other persons based on the
efficient provision of services or as incentives to provide quality care. The commissioner
of health shall, pursuant to this chapter, revoke the certificate of authority of any nonprofit
health maintenance organization in violation of this subdivision.
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