SF 3022

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 03/18/2010 08:51pm

A bill for an act
relating to insurance; providing former employees the option to bypass
continuation coverage and obtain low-cost immediate conversion health
insurance coverage from their former employer's insurer; amending Minnesota
Statutes 2008, section 62A.17, by adding a subdivision.

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

Section. 1.

Minnesota Statutes 2008, section 62A.17, is amended by adding a
subdivision to read:

new text begin Subd. 7. new text end

new text begin Access to GAP policy. new text end

new text begin (a) In addition to other coverage required to be
available under this section, a health plan that provides group health coverage to an
employer must contain a provision which provides to every covered employee eligible
for continuation health coverage under subdivision 1 the right to obtain from the health
carrier a GAP policy under this subdivision, without first enrolling in and completing
continuation coverage. The employer, or health carrier on behalf of the employer, must
provide the former employee with written notice of the former employee's rights under this
subdivision at the same time the employer provides notice of the former employee's rights
under subdivisions 1 to 5. Coverage under this subdivision must be offered to any person
to whom continuation coverage must be offered under federal law or Minnesota law.
new text end

new text begin (b) The individual GAP policies available to a former employee, including coverage
for any previously covered dependent at the option of the former employee, must be at
least the following options:
new text end

new text begin (1) annual deductible of $1,000 per individual, 80 percent coverage above the
deductible subject to an annual $10,000 limit on out-of-pocket costs, and further subject
to a $1,000,000 lifetime maximum benefit per individual;
new text end

new text begin (2) a qualified high-deductible health plan compatible with a health savings account;
and
new text end

new text begin (3) an annual deductible of $10,000 or $15,000 per individual, with 100 percent
coverage above those deductibles, subject to a minimum $1,000,000 lifetime limit per
individual.
new text end

new text begin (c) The insurer must not consider the insurer's loss experience under policies issued
under this subdivision in determining the premium or any other feature of the employer's
group coverage.
new text end

new text begin (d) A former employee is not eligible for GAP coverage under this subdivision if
the former employee has enrolled in continuation coverage under subdivisions 1 to 5.
An election to receive coverage under this subdivision must be made no later than the
deadline for electing continuation coverage under subdivisions 1 to 5.
new text end

new text begin (e) A person enrolled in GAP coverage under this subdivision may continue to
renew that coverage until the person becomes eligible for group health coverage as an
employee or dependent or for 18 months, whichever is earlier. After 18 months, the former
employee is eligible for Minnesota Comprehensive Health Association coverage without a
preexisting condition limitation under section 62E.14, subdivision 4c, paragraph (a).
new text end

new text begin (f) Coverage under this subdivision must be available on a guaranteed-issue basis,
following the HIPAA preexisting condition limitation definition.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2011, and applies to
terminations of or layoffs from employment that begin on or after that date.
new text end