SF 2462

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to health; creating a MinnesotaCare 
  1.3             subsidized health insurance account; repealing the 
  1.4             premium tax and the MinnesotaCare provider tax; 
  1.5             amending Minnesota Statutes 1998, sections 60A.15, 
  1.6             subdivision 1; 62J.041, subdivision 1; 62Q.095, 
  1.7             subdivision 6; 144.1494, subdivision 1; 144.1495, 
  1.8             subdivision 2; 144.1496, subdivision 1; 214.16, 
  1.9             subdivisions 2 and 3; 256L.02, subdivisions 3 and 4; 
  1.10            and 270B.01, subdivision 8; Minnesota Statutes 1999 
  1.11            Supplement, section 270B.14, subdivision 1; proposing 
  1.12            coding for new law in Minnesota Statutes, chapter 16A; 
  1.13            repealing Minnesota Statutes 1998, sections 16A.724; 
  1.14            16A.76; 62T.10; 144.1484, subdivision 2; 295.50, 
  1.15            subdivisions 1, 2, 2a, 3, 6, 6a, 7, 9b, 9c, 10a, 10b, 
  1.16            12b, 13, 14, and 15; 295.51; 295.52, subdivisions 1, 
  1.17            1a, 2, 3, 4, 4a, and 6; 295.53, subdivisions 2, 3, and 
  1.18            4; 295.54; 295.55, subdivisions 1, 4, 5, 6, and 7; 
  1.19            295.56; 295.57, subdivisions 1, 2, and 3; 295.58; 
  1.20            295.581; 295.582; and 295.59; Minnesota Statutes 1999 
  1.21            Supplement, sections 13.99, subdivision 86b; 295.50, 
  1.22            subdivision 4; 295.52, subdivisions 5 and 7; 295.53, 
  1.23            subdivision 1; 295.55, subdivisions 2 and 3; and 
  1.24            295.57, subdivision 4. 
  1.25  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.26     Section 1.  [16A.78] [MINNESOTACARE SUBSIDIZED HEALTH 
  1.27  INSURANCE ACCOUNT.] 
  1.28     (a) A MinnesotaCare subsidized health insurance account is 
  1.29  established in the general fund. 
  1.30     (b) The commissioner shall credit to the account the 
  1.31  tobacco settlement payments received by the state each December 
  1.32  beginning December 1999 as a result of the settlement of the 
  1.33  lawsuit styled as State v. Philip Morris Inc., No. C1-94-8565 
  1.34  (Minnesota District Court, Second Judicial District). 
  1.35     (c) Money in the account is available for and may only be 
  2.1   spent for expenditures associated with the MinnesotaCare program.
  2.2      (d) The balance in the account does not cancel and remains 
  2.3   in the account until appropriated by law for the purposes 
  2.4   described in this section.  
  2.5      (e) Notwithstanding section 11A.20, investment earnings on 
  2.6   the account are credited to the account.  
  2.7      Sec. 2.  Minnesota Statutes 1998, section 60A.15, 
  2.8   subdivision 1, is amended to read: 
  2.9      Subdivision 1.  [DOMESTIC AND FOREIGN COMPANIES.] (a) On or 
  2.10  before April 1, June 1, and December 1 of each year, every 
  2.11  domestic and foreign company, including town and farmers' mutual 
  2.12  insurance companies, domestic mutual insurance companies, and 
  2.13  marine insurance companies, health maintenance organizations, 
  2.14  community integrated service networks, and nonprofit health 
  2.15  service plan corporations, shall pay to the commissioner of 
  2.16  revenue installments equal to one-third of the insurer's total 
  2.17  estimated tax for the current year.  Except as provided in 
  2.18  paragraphs paragraph (d), (e), (h), and (i), installments must 
  2.19  be based on a sum equal to two percent of the premiums described 
  2.20  in paragraph (b). 
  2.21     (b) Installments under paragraph (a), or (d), or (e) are 
  2.22  percentages of gross premiums less return premiums on all direct 
  2.23  business received by the insurer in this state, or by its agents 
  2.24  for it, in cash or otherwise, during such year. 
  2.25     (c) Failure of a company to make payments of at least 
  2.26  one-third of either (1) the total tax paid during the previous 
  2.27  calendar year or (2) 80 percent of the actual tax for the 
  2.28  current calendar year shall subject the company to the penalty 
  2.29  and interest provided in this section, unless the total tax for 
  2.30  the current tax year is $500 or less. 
  2.31     (d) For health maintenance organizations, nonprofit health 
  2.32  service plan corporations, and community integrated service 
  2.33  networks, the installments must be based on an amount determined 
  2.34  under paragraph (h) or (i). 
  2.35     (e) For purposes of computing installments for town and 
  2.36  farmers' mutual insurance companies and for mutual property 
  3.1   casualty companies with total assets on December 31, 1989, of 
  3.2   $1,600,000,000 or less, the following rates apply: 
  3.3      (1) for all life insurance, two percent; 
  3.4      (2) for town and farmers' mutual insurance companies and 
  3.5   for mutual property and casualty companies with total assets of 
  3.6   $5,000,000 or less, on all other coverages, one percent; and 
  3.7      (3) for mutual property and casualty companies with total 
  3.8   assets on December 31, 1989, of $1,600,000,000 or less, on all 
  3.9   other coverages, 1.26 percent. 
  3.10     (f) (e) If the aggregate amount of premium tax payments 
  3.11  under this section and the fire marshal tax payments under 
  3.12  section 299F.21 made during a calendar year is equal to or 
  3.13  exceeds $120,000, all tax payments in the subsequent calendar 
  3.14  year must be paid by means of a funds transfer as defined in 
  3.15  section 336.4A-104, paragraph (a).  The funds transfer payment 
  3.16  date, as defined in section 336.4A-401, must be on or before the 
  3.17  date the payment is due.  If the date the payment is due is not 
  3.18  a funds transfer business day, as defined in section 336.4A-105, 
  3.19  paragraph (a), clause (4), the payment date must be on or before 
  3.20  the funds transfer business day next following the date the 
  3.21  payment is due.  
  3.22     (g) (f) Premiums under medical assistance, general 
  3.23  assistance medical care, the MinnesotaCare program, and the 
  3.24  Minnesota comprehensive health insurance plan and all payments, 
  3.25  revenues, and reimbursements received from the federal 
  3.26  government for Medicare-related coverage as defined in section 
  3.27  62A.31, subdivision 3, paragraph (e), are not subject to tax 
  3.28  under this section. 
  3.29     (h) For calendar years 1997, 1998, and 1999, the 
  3.30  installments for health maintenance organizations, community 
  3.31  integrated service networks, and nonprofit health service plan 
  3.32  corporations must be based on an amount equal to one percent of 
  3.33  premiums described under paragraph (b).  Health maintenance 
  3.34  organizations, community integrated service networks, and 
  3.35  nonprofit health service plan corporations that have met the 
  3.36  cost containment goals established under section 62J.04 in the 
  4.1   individual and small employer market for calendar year 1996 are 
  4.2   exempt from payment of the tax imposed under this section for 
  4.3   premiums paid after March 30, 1997, and before April 1, 1998.  
  4.4   Health maintenance organizations, community integrated service 
  4.5   networks, and nonprofit health service plan corporations that 
  4.6   have met the cost containment goals established under section 
  4.7   62J.04 in the individual and small employer market for calendar 
  4.8   year 1997 are exempt from payment of the tax imposed under this 
  4.9   section for premiums paid after March 30, 1998, and before April 
  4.10  1, 1999.  Health maintenance organizations, community integrated 
  4.11  service networks, and nonprofit health service plan corporations 
  4.12  that have met the cost containment goals established under 
  4.13  section 62J.04 in the individual and small employer market for 
  4.14  calendar year 1998 are exempt from payment of the tax imposed 
  4.15  under this section for premiums paid after March 30, 1999, and 
  4.16  before January 1, 2000.  
  4.17     (i) For calendar years after 1999, the commissioner of 
  4.18  finance shall determine the balance of the health care access 
  4.19  fund on September 1 of each year beginning September 1, 1999.  
  4.20  If the commissioner determines that there is no structural 
  4.21  deficit for the next fiscal year, no tax shall be imposed under 
  4.22  paragraph (d) for the following calendar year.  If the 
  4.23  commissioner determines that there will be a structural deficit 
  4.24  in the fund for the following fiscal year, then the 
  4.25  commissioner, in consultation with the commissioner of revenue, 
  4.26  shall determine the amount needed to eliminate the structural 
  4.27  deficit and a tax shall be imposed under paragraph (d) for the 
  4.28  following calendar year.  The commissioner shall determine the 
  4.29  rate of the tax as either one-quarter of one percent, one-half 
  4.30  of one percent, three-quarters of one percent, or one percent of 
  4.31  premiums described in paragraph (b), whichever is the lowest of 
  4.32  those rates that the commissioner determines will produce 
  4.33  sufficient revenue to eliminate the projected structural 
  4.34  deficit.  The commissioner of finance shall publish in the State 
  4.35  Register by October 1 of each year the amount of tax to be 
  4.36  imposed for the following calendar year.  In determining the 
  5.1   structural balance of the health care access fund for fiscal 
  5.2   years 2000 and 2001, the commissioner shall disregard the 
  5.3   transfer amount from the health care access fund to the general 
  5.4   fund for expenditures associated with the services provided to 
  5.5   pregnant women and children under the age of two enrolled in the 
  5.6   MinnesotaCare program.  
  5.7      (j) In approving the premium rates as required in sections 
  5.8   62L.08, subdivision 8, and 62A.65, subdivision 3, the 
  5.9   commissioners of health and commerce shall ensure that any 
  5.10  exemption from the tax as described in paragraphs (h) and (i) is 
  5.11  reflected in the premium rate.  
  5.12     Sec. 3.  Minnesota Statutes 1998, section 62J.041, 
  5.13  subdivision 1, is amended to read: 
  5.14     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
  5.15  section, the following definitions apply. 
  5.16     (b) "Health plan company" has the definition provided in 
  5.17  section 62Q.01. 
  5.18     (c) "Total expenditures" means incurred claims or 
  5.19  expenditures on health care services, administrative expenses, 
  5.20  charitable contributions, and all other payments made by health 
  5.21  plan companies out of premium revenues. 
  5.22     (d) "Net expenditures" means total expenditures minus 
  5.23  exempted taxes and assessments and payments or allocations made 
  5.24  to establish or maintain reserves.  
  5.25     (e) "Exempted taxes and assessments" means direct payments 
  5.26  for taxes to government agencies, contributions to the Minnesota 
  5.27  comprehensive health association, the medical assistance 
  5.28  provider's surcharge under section 256.9657, the MinnesotaCare 
  5.29  provider tax under Minnesota Statutes 1998, section 295.52, 
  5.30  assessments by the health coverage reinsurance association, 
  5.31  assessments by the Minnesota life and health insurance guaranty 
  5.32  association, assessments by the Minnesota risk adjustment 
  5.33  association, and any new assessments imposed by federal or state 
  5.34  law. 
  5.35     (f) "Consumer cost-sharing or subscriber liability" means 
  5.36  enrollee coinsurance, copayment, deductible payments, and 
  6.1   amounts in excess of benefit plan maximums.  
  6.2      Sec. 4.  Minnesota Statutes 1998, section 62Q.095, 
  6.3   subdivision 6, is amended to read: 
  6.4      Subd. 6.  [EXEMPTION.] A health plan company, to the extent 
  6.5   that it operates as a staff model health plan company as defined 
  6.6   in section 295.50, subdivision 12b, by employing allied 
  6.7   independent health care providers to deliver health care 
  6.8   services to enrollees, is exempt from this section.  For 
  6.9   purposes of this subdivision, "staff model health plan company" 
  6.10  means a health plan company as defined in section 62Q.01, 
  6.11  subdivision 4, that employs one or more types of health care 
  6.12  provider to deliver health care services to the health plan 
  6.13  company's enrollees. 
  6.14     Sec. 5.  Minnesota Statutes 1998, section 144.1494, 
  6.15  subdivision 1, is amended to read: 
  6.16     Subdivision 1.  [CREATION OF ACCOUNT.] A rural physician 
  6.17  education account is established in the health care 
  6.18  access general fund.  The commissioner shall use money from the 
  6.19  account to establish a loan forgiveness program for medical 
  6.20  residents agreeing to practice in designated rural areas, as 
  6.21  defined by the commissioner.  Appropriations made to this 
  6.22  account do not cancel and are available until expended, except 
  6.23  that at the end of each biennium the commissioner shall cancel 
  6.24  to the health care access fund any remaining unobligated balance 
  6.25  in this account. 
  6.26     Sec. 6.  Minnesota Statutes 1998, section 144.1495, 
  6.27  subdivision 2, is amended to read: 
  6.28     Subd. 2.  [CREATION OF ACCOUNT.] A midlevel practitioner 
  6.29  education account is established in the health care 
  6.30  access general fund.  The commissioner shall use money from the 
  6.31  account to establish a loan forgiveness program for midlevel 
  6.32  practitioners agreeing to practice in designated rural areas.  
  6.33     Sec. 7.  Minnesota Statutes 1998, section 144.1496, 
  6.34  subdivision 1, is amended to read: 
  6.35     Subdivision 1.  [CREATION OF THE ACCOUNT.] An education 
  6.36  account in the health care access general fund is established 
  7.1   for a loan forgiveness program for nurses who agree to practice 
  7.2   nursing in a nursing home or intermediate care facility for 
  7.3   persons with mental retardation or related conditions.  The 
  7.4   account consists of money appropriated by the legislature and 
  7.5   repayments and penalties collected under subdivision 4.  Money 
  7.6   from the account must be used for a loan forgiveness program.  
  7.7      Sec. 8.  Minnesota Statutes 1998, section 214.16, 
  7.8   subdivision 2, is amended to read: 
  7.9      Subd. 2.  [BOARD COOPERATION REQUIRED.] The board shall 
  7.10  assist the commissioner of health in data collection activities 
  7.11  required under Laws 1992, chapter 549, article 7, and shall 
  7.12  assist the commissioner of revenue in activities related to 
  7.13  collection of the health care provider tax required under Laws 
  7.14  1992, chapter 549, article 9.  Upon the request of the 
  7.15  commissioner or the commissioner of revenue, the board shall 
  7.16  make available names and addresses of current licensees and 
  7.17  provide other information or assistance as needed. 
  7.18     Sec. 9.  Minnesota Statutes 1998, section 214.16, 
  7.19  subdivision 3, is amended to read: 
  7.20     Subd. 3.  [GROUNDS FOR DISCIPLINARY ACTION.] The board 
  7.21  shall take disciplinary action, which may include license 
  7.22  revocation, against a regulated person for: 
  7.23     (1) intentional failure to provide the commissioner of 
  7.24  health with the data required under chapter 62J; 
  7.25     (2) intentional failure to provide the commissioner of 
  7.26  revenue with data on gross revenue and other information 
  7.27  required for the commissioner to implement sections 295.50 to 
  7.28  295.58; 
  7.29     (3) intentional failure to pay the health care provider tax 
  7.30  required under section 295.52; and 
  7.31     (4) (2) entering into a contract or arrangement that is 
  7.32  prohibited under sections 62J.70 to 62J.73.  
  7.33     Sec. 10.  Minnesota Statutes 1998, section 256L.02, 
  7.34  subdivision 3, is amended to read: 
  7.35     Subd. 3.  [FINANCIAL MANAGEMENT.] (a) The commissioner 
  7.36  shall manage spending for the MinnesotaCare program in a manner 
  8.1   that maintains a minimum reserve in accordance with section 
  8.2   16A.76.  As part of each state revenue and expenditure forecast, 
  8.3   the commissioner must make an assessment of the expected 
  8.4   expenditures for the services covered services under the 
  8.5   MinnesotaCare program for the remainder of the current biennium 
  8.6   and for the following biennium.  The estimated expenditure, 
  8.7   including the reserve requirements described in section 16A.76, 
  8.8   shall be compared to an estimate of the revenues that will be 
  8.9   available in the health care access fund.  Based on this 
  8.10  comparison, and After consulting with the chairs of the house 
  8.11  ways and means committee and the senate finance committee, and 
  8.12  the legislative commission on health care access, the 
  8.13  commissioner shall, as necessary, make the adjustments specified 
  8.14  in paragraph (b) to ensure that expenditures remain within the 
  8.15  limits of the available revenues for the remainder of the 
  8.16  current biennium and for the following biennium appropriations.  
  8.17  The commissioner shall not hire additional staff using 
  8.18  appropriations from the health care access general fund until 
  8.19  the commissioner of finance makes a determination that the 
  8.20  adjustments implemented under paragraph (b) are sufficient to 
  8.21  allow MinnesotaCare expenditures to remain within the limits of 
  8.22  available revenues for the remainder of the current biennium and 
  8.23  for the following biennium appropriations. 
  8.24     (b) The adjustments the commissioner shall use must be 
  8.25  implemented in this order:  first, stop enrollment of single 
  8.26  adults and households without children; second, upon 45 days' 
  8.27  notice, stop coverage of single adults and households without 
  8.28  children already enrolled in the MinnesotaCare program; third, 
  8.29  upon 90 days' notice, decrease the premium subsidy amounts by 
  8.30  ten percent for families with gross annual income above 200 
  8.31  percent of the federal poverty guidelines; fourth, upon 90 days' 
  8.32  notice, decrease the premium subsidy amounts by ten percent for 
  8.33  families with gross annual income at or below 200 percent; and 
  8.34  fifth, require applicants to be uninsured for at least six 
  8.35  months prior to eligibility in the MinnesotaCare program.  If 
  8.36  these measures are insufficient to limit the expenditures to the 
  9.1   estimated amount of revenue available appropriations, the 
  9.2   commissioner shall further limit enrollment or decrease premium 
  9.3   subsidies. 
  9.4      Sec. 11.  Minnesota Statutes 1998, section 256L.02, 
  9.5   subdivision 4, is amended to read: 
  9.6      Subd. 4.  [FUNDING FOR PREGNANT WOMEN AND CHILDREN UNDER 
  9.7   AGE TWO.] For fiscal years beginning on or after July 1, 1999, 
  9.8   the state cost of health care services provided to MinnesotaCare 
  9.9   enrollees who are pregnant women or children under age two shall 
  9.10  be paid out of the general fund rather than the health care 
  9.11  access fund.  If the commissioner of finance decides to pay for 
  9.12  these costs using a source other than the general fund, the 
  9.13  commissioner shall include the change as a budget initiative in 
  9.14  the biennial or supplemental budget, and shall not change the 
  9.15  funding source through a forecast modification. 
  9.16     Sec. 12.  Minnesota Statutes 1998, section 270B.01, 
  9.17  subdivision 8, is amended to read: 
  9.18     Subd. 8.  [MINNESOTA TAX LAWS.] For purposes of this 
  9.19  chapter only, unless expressly stated otherwise, "Minnesota tax 
  9.20  laws" means the taxes, refunds, and fees administered by or paid 
  9.21  to the commissioner under chapters 115B (except taxes imposed 
  9.22  under sections 115B.21 to 115B.24), 289A (except taxes imposed 
  9.23  under sections 298.01, 298.015, and 298.24), 290, 290A, 291, 
  9.24  297A, and 297H and sections 295.50 to 295.59, or any similar 
  9.25  Indian tribal tax administered by the commissioner pursuant to 
  9.26  any tax agreement between the state and the Indian tribal 
  9.27  government, and includes any laws for the assessment, 
  9.28  collection, and enforcement of those taxes, refunds, and fees. 
  9.29     Sec. 13.  Minnesota Statutes 1999 Supplement, section 
  9.30  270B.14, subdivision 1, is amended to read: 
  9.31     Subdivision 1.  [DISCLOSURE TO COMMISSIONER OF HUMAN 
  9.32  SERVICES.] (a) On the request of the commissioner of human 
  9.33  services, the commissioner shall disclose return information 
  9.34  regarding taxes imposed by chapter 290, and claims for refunds 
  9.35  under chapter 290A, to the extent provided in paragraph (b) and 
  9.36  for the purposes set forth in paragraph (c). 
 10.1      (b) Data that may be disclosed are limited to data relating 
 10.2   to the identity, whereabouts, employment, income, and property 
 10.3   of a person owing or alleged to be owing an obligation of child 
 10.4   support. 
 10.5      (c) The commissioner of human services may request data 
 10.6   only for the purposes of carrying out the child support 
 10.7   enforcement program and to assist in the location of parents who 
 10.8   have, or appear to have, deserted their children.  Data received 
 10.9   may be used only as set forth in section 256.978. 
 10.10     (d) The commissioner shall provide the records and 
 10.11  information necessary to administer the supplemental housing 
 10.12  allowance to the commissioner of human services.  
 10.13     (e) At the request of the commissioner of human services, 
 10.14  the commissioner of revenue shall electronically match the 
 10.15  social security numbers and names of participants in the 
 10.16  telephone assistance plan operated under sections 237.69 to 
 10.17  237.711, with those of property tax refund filers, and determine 
 10.18  whether each participant's household income is within the 
 10.19  eligibility standards for the telephone assistance plan. 
 10.20     (f) The commissioner may provide records and information 
 10.21  collected under Minnesota Statutes 1998, sections 295.50 to 
 10.22  295.59 to the commissioner of human services for purposes of the 
 10.23  Medicaid Voluntary Contribution and Provider-Specific Tax 
 10.24  Amendments of 1991, Public Law Number 102-234.  Upon the written 
 10.25  agreement by the United States Department of Health and Human 
 10.26  Services to maintain the confidentiality of the data, the 
 10.27  commissioner may provide records and information collected under 
 10.28  Minnesota Statutes 1998, sections 295.50 to 295.59, to the 
 10.29  Health Care Financing Administration section of the United 
 10.30  States Department of Health and Human Services for purposes of 
 10.31  meeting federal reporting requirements.  
 10.32     (g) The commissioner may provide records and information to 
 10.33  the commissioner of human services as necessary to administer 
 10.34  the early refund of refundable tax credits. 
 10.35     (h) The commissioner may disclose information to the 
 10.36  commissioner of human services necessary to verify income for 
 11.1   eligibility and premium payment under the MinnesotaCare program, 
 11.2   under section 256L.05, subdivision 2. 
 11.3      (i) The commissioner may disclose information to the 
 11.4   commissioner of human services necessary to verify whether 
 11.5   applicants or recipients for the Minnesota family investment 
 11.6   program, general assistance, food stamps, and Minnesota 
 11.7   supplemental aid program have claimed refundable tax credits 
 11.8   under chapter 290 and the property tax refund under chapter 
 11.9   290A, and the amounts of the credits. 
 11.10     Sec. 14.  [TRANSFER.] 
 11.11     The commissioner of finance shall transfer money in the 
 11.12  health care access fund as of July 1, 2000, to the MinnesotaCare 
 11.13  subsidized health insurance account in the general fund. 
 11.14     Sec. 15.  [REPEALER.] 
 11.15     Minnesota Statutes 1998, sections 16A.724; 16A.76; 62T.10; 
 11.16  144.1484, subdivision 2; 295.50, subdivisions 1, 2, 2a, 3, 6, 
 11.17  6a, 7, 9b, 9c, 10a, 10b, 12b, 13, 14, and 15; 295.51; 295.52, 
 11.18  subdivisions 1, 1a, 2, 3, 4, 4a, and 6; 295.53, subdivisions 2, 
 11.19  3, and 4; 295.54; 295.55, subdivisions 1, 4, 5, 6, and 7; 
 11.20  295.56; 295.57, subdivisions 1, 2, and 3; 295.58; 295.581; 
 11.21  295.582; and 295.59; Minnesota Statutes 1999 Supplement, 
 11.22  sections 13.99, subdivision 86b; 295.50, subdivision 4; 295.52, 
 11.23  subdivisions 5 and 7; 295.53, subdivision 1; 295.55, 
 11.24  subdivisions 2 and 3; and 295.57, subdivision 4, are repealed.  
 11.25     Sec. 16.  [EFFECTIVE DATES.] 
 11.26     Sections 1 and 3 to 15 are effective July 1, 2000.  Section 
 11.27  2 is effective January 1, 2000.