SF 2235

as introduced - 87th Legislature (2011 - 2012) Posted on 03/06/2012 09:17am

A bill for an act
relating to health; establishing the Minnesota Health Care Purchasing Authority;
consolidating state health care purchasing through the authority; proposing
coding for new law in Minnesota Statutes, chapter 16A.

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

Section 1.

new text begin [16A.726] MINNESOTA HEALTH CARE PURCHASING
AUTHORITY.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner shall establish the Minnesota
Health Care Purchasing Authority as a division within the Department of Management
and Budget.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following definitions
apply.
new text end

new text begin (b) "Authority" means the Minnesota Health Care Purchasing Authority.
new text end

new text begin (c) "Health plan company" has the meaning provided in section 62Q.01, subdivision
4.
new text end

new text begin (d) "Health care provider" has the meaning provided in section 62J.03, subdivision
8, except that the term also includes nursing homes.
new text end

new text begin (e) "State administered health care programs" means medical assistance,
MinnesotaCare, and health plans provided to employees of the state and its political
subdivisions.
new text end

new text begin Subd. 3. new text end

new text begin Duties. new text end

new text begin (a) The commissioner, through the Minnesota Health Care
Purchasing Authority, shall improve the efficiency and cost-effectiveness of health care
delivery under state-administered health care programs, by:
new text end

new text begin (1) coordinating the purchase and delivery of health care services across state
agencies and political subdivisions of the state;
new text end

new text begin (2) consolidating health care purchasing across state administered health care
programs, by expanding, where appropriate, the use of competitive bidding, volume
purchasing, and selective contracting;
new text end

new text begin (3) contracting with health care providers and health plan companies to provide
services across the range of state-administered health care programs;
new text end

new text begin (4) incorporating financial and other incentives in state-administered health care
programs for health care providers and health plan companies to deliver health care
services in a cost-effective manner to patients; and
new text end

new text begin (5) coordinating and simplifying benefit sets across state-administered health care
programs.
new text end

new text begin (b) The commissioner, through the authority, shall, on behalf of the state agency
commissioners responsible for state-administered health care programs, negotiate and
enter into contracts with health care providers and health plan companies, and seek federal
law changes and waivers, in order to carry out the duties assigned in paragraph (a). State
agency commissioners shall provide the authority with all information and technical
support necessary to accomplish these duties.
new text end

new text begin (c) The commissioner, through the authority, shall work with units of local
government and other political subdivisions of the state to carry out the duties assigned in
paragraph (a).
new text end

new text begin Subd. 4. new text end

new text begin Annual report. new text end

new text begin The commissioner shall report to the legislature on
January 15, 2013, and each January 15 thereafter, on the work of the Minnesota Health
Care Purchasing Authority. Each report must include estimates of state health care savings
resulting from the implementation of the authority's initiatives and recommendations for
any changes in state law necessary for the authority to effectively implement this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2012.
new text end

Sec. 2. new text begin TRANSFER.
new text end

new text begin Effective July 1, 2012, all powers, duties, and functions related to the responsibilities
specified in Minnesota Statutes, section 16A.726, subdivision 3, now vested in the state
agencies responsible for state-administered health care programs, are transferred to the
Minnesota Health Care Purchasing Authority within the Department of Management
and Budget.
new text end