SF 2313

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 03/19/2012 12:02pm

A bill for an act
relating to insurance; permitting certain entities to administer unified personal
health premium accounts; creating a task force; amending Minnesota Statutes
2011 Supplement, section 256L.031, subdivision 4; proposing coding for new
law as Minnesota Statutes, chapter 62V; repealing Minnesota Statutes 2010,
section 62L.12, subdivisions 3, 4.

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

Section 1.

new text begin [62V.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope of definitions. new text end

new text begin For purposes of this act, the terms defined
in this section have the meanings given.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of commerce.
new text end

new text begin Subd. 3. new text end

new text begin Health insurance. new text end

new text begin "Health insurance" means:
new text end

new text begin (1) individual health insurance; fully insured or self-insured group health coverage;
and individual and group policies that cover cancer, accidents, critical illness, hospital
confinement/medical bridge, short-term disability, long-term care, individual medical,
and high deductible health plans including those that are compatible with health savings
accounts; and
new text end

new text begin (2) any other coverages identified under sections 60A.06, subdivision 1, clause
(5)(a); 62Q.01, subdivisions 4a and 6; and 62Q.188.
new text end

new text begin Subd. 4. new text end

new text begin Trustee. new text end

new text begin "Trustee" means an entity that has trust powers under state or
federal law.
new text end

new text begin Subd. 5. new text end

new text begin Unified personal health premium account or account. new text end

new text begin "Unified personal
health premium account" or "account" means a trust account created for the purpose of
receiving funds from multiple sources for the payment of, or reimbursement for, health
insurance premiums.
new text end

new text begin Subd. 6. new text end

new text begin Unified personal health premium account administrator or
administrator. new text end

new text begin "Unified personal health premium account administrator" or
"administrator" means an entity that has the authority to administer a unified personal
health premium account.
new text end

Sec. 2.

new text begin [62V.02] REGISTRATION REQUIRED.
new text end

new text begin (a) Only a private-sector entity or individual registered with the commissioner as
a unified personal health premium account administrator may administer an account on
behalf of a resident of this state.
new text end

new text begin (b) To register under this section, a private sector entity or individual must be:
new text end

new text begin (1) a licensed insurance producer, as defined in section 60K.31, subdivision 6, under
the insurance authority described in section 60K.38, subdivision 1, paragraph (b), clause
(1), (2), or (5);
new text end

new text begin (2) a licensed vendor of risk management services or entity administering a
self-insurance or insurance plan under section 60A.23, subdivision 8; or
new text end

new text begin (3) a federally or state-chartered bank or credit union.
new text end

new text begin (c) An applicant for registration under this section shall pay a fee of $250 for initial
registration and $50 for each three-year renewal.
new text end

Sec. 3.

new text begin [62V.03] REQUIREMENTS; ADMINISTRATION OF UNIFIED
PERSONAL HEALTH PREMIUM ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Nature of arrangements. new text end

new text begin (a) Administrators of a unified personal
health premium account under contract with an employer must conduct business in
accordance with a written contract.
new text end

new text begin (b) Administrators may conduct business directly with individuals in accordance
with a written agreement.
new text end

new text begin (c) The written agreement between a unified personal health premium account
administrator and its customer must specify the services to be provided to the customer,
the payment for each service including administrative costs, and the timing and method of
each payment or type of payment.
new text end

new text begin (d) An administrator may administer unified personal health premium accounts
separately or in conjunction with other employee benefit services, including services
that facilitate and coordinate tax-preferred payments for health care and coverage under
Internal Revenue Code, sections 105, 106, and 125.
new text end

new text begin (e) An administrator shall create and maintain records of receipts, payments, and
other transactions, sufficient to enable the individual to benefit from tax advantages
available to the individual under Internal Revenue Code, sections 105, 106, 125, and other
relevant sections, and under Minnesota income tax law, for health insurance paid by or on
behalf of the individual. The administrator shall identify and notify the account holder and
contributors of any applicable tax subsidies and tax credits for which the account holder or
contributor qualifies in connection with the account or items paid for through the account.
The records and procedures must be capable of segregating funds to maintain restrictions
on the funds received from contributors.
new text end

new text begin (f) Individual insurance market products paid for through the account under this
section are not an employer-sponsored plan subject to state or federal group insurance
market requirements.
new text end

new text begin Subd. 2. new text end

new text begin Trust account requirements. new text end

new text begin (a) Contributions to an individual's account
may be made by the individual, the individual's employer or former employer, the
individual's family members or dependents, charitable organizations, or any other source.
new text end

new text begin (b) A contributor to the account may restrict the use of funds the contributor
contributes to the payment of premiums for one or more of the types of health insurance
included in section 62V.01, subdivision 3.
new text end

new text begin (c) A trust created and trustees appointed under this act shall:
new text end

new text begin (1) have the powers granted under, and shall comply with, the provisions of chapter
501B that are relevant to a trust created for purposes of this act;
new text end

new text begin (2) allow for financial contributions from multiple sources, including tax-preferred
contributions from employers and non-tax-preferred contributions from individuals or
other sources;
new text end

new text begin (3) restrict funds to be used exclusively for the benefit of the individual account
holder or the individual's tax dependents;
new text end

new text begin (4) make funds available for the payment of premiums on any type of health
insurance included in section 62V.01, subdivision 3, from any insurance company, subject
to any restriction under paragraph (b);
new text end

new text begin (5) grant the unified personal health premium account administrator authority to
direct payments to insurance companies or to reimburse account owners for qualified
health insurance premium expenses;
new text end

new text begin (6) segregate funds to maintain restrictions on the funds received from contributors;
and
new text end

new text begin (7) guarantee that funds contributed by an employer will remain available to the
account holder after the account holder's term of employment with the employer ends.
new text end

Sec. 4.

new text begin [62V.04] COORDINATION WITH HEALTHY MINNESOTA PROGRAM.
new text end

new text begin The commissioner of human services shall enter into agreements under which
unified personal health premium account administrators may receive public funds for
use as subsidies toward payment of premiums for health coverage provided to eligible
individuals who have a trust account for that purpose.
new text end

Sec. 5.

Minnesota Statutes 2011 Supplement, section 256L.031, subdivision 4, is
amended to read:

Subd. 4.

Administration by commissioner.

(a) The commissioner shall administer
the defined contributions. The commissioner shall:

(1) calculate and process defined contributions for enrollees; and

(2) pay the defined contribution amount to new text begin personal health premium account
administrators as defined in section 62V.01, new text end health plan companies or the Minnesota
Comprehensive Health Association, as applicable, for enrollee health plan coverage.

(b) Nonpayment of a health plan premium shall result in disenrollment from
MinnesotaCare effective the first day of the calendar month following the calendar month
for which the premium was due. Persons disenrolled for nonpayment or who voluntarily
terminate coverage may not reenroll until four calendar months have elapsed.

Sec. 6. new text begin HEALTH INSURANCE MARKETPLACE WEBSITE TASK FORCE.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The Health Insurance Marketplace Website Task Force is
established to perform the duties set forth in subdivision 4.
new text end

new text begin Subd. 2. new text end

new text begin Membership. new text end

new text begin The Health Insurance Marketplace Website Task Force
consists entirely of private sector representatives.
new text end

new text begin A working group of five senators, three appointed by the senate majority leader and
two appointed by the senate minority leader, and five representatives, three appointed by
the speaker of the house and two appointed by the house minority leader shall appoint
membership of the task force by July 1, 2012, as follows:
new text end

new text begin (1) four members appointed from a pool of nominees proposed by the Chamber of
Commerce representing both large and small employers, one of whom will be designated
to convene the initial meeting of the task force;
new text end

new text begin (2) two members appointed from a pool of nominees proposed by the Minnesota
Council of Health Plans;
new text end

new text begin (3) two members appointed from a pool of nominees proposed by nonhospital
provider groups;
new text end

new text begin (4) two members appointed from a pool of nominees proposed by the Minnesota
Hospital Association; and
new text end

new text begin (5) four members appointed from a pool of nominees proposed by the Minnesota
Association of Health Underwriters.
new text end

new text begin The speaker of the house shall designate one of the legislative appointees to convene
the working group.
new text end

new text begin Subd. 3. new text end

new text begin Meetings and procedures. new text end

new text begin The initial meeting of the task force must be
convened no later than August 1, 2012. At that meeting, a chair will be elected from the
task force membership and a meeting schedule established. Members of the task force
must serve without compensation or reimbursement of expenses from the task force.
new text end

new text begin Subd. 4. new text end

new text begin Duties. new text end

new text begin The task force shall:
new text end

new text begin (1) identify existing Internet-based tools for purchasing health insurance;
new text end

new text begin (2) evaluate their utility in aiding individuals and businesses in purchasing health
insurance;
new text end

new text begin (3) develop recommendations, if necessary, to broaden or enhance the capacity of
Internet-based purchasing tools; and
new text end

new text begin (4) report to the legislature by February 1, 2013, their recommendations, specifying
what, if any, state action is needed to implement them.
new text end

new text begin Subd. 5. new text end

new text begin Sunset. new text end

new text begin The task force shall sunset on the day following submission
of the report.
new text end

Sec. 7. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2010, section 62L.12, subdivisions 3 and 4, new text end new text begin are repealed.
new text end

Sec. 8. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective the day following final enactment.
new text end