SF 3026

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to insurance; authorizing service cooperatives to offer health reinsurance
programs; allowing local units of government to participate in the programs;
amending Minnesota Statutes 2004, sections 123A.21, subdivision 7; 471.61, by
adding a subdivision; 471.617, subdivision 3, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2004, section 123A.21, subdivision 7, is amended to
read:

Subd. 7.

Educational programs and services.

The board of directors of each SC
shall submit annually a plan to the members. The plan shall identify the programs and
services which are suggested for implementation by the SC during the following year and
shall contain components of long-range planning determined by the SC. These programs
and services may include, but are not limited to, the following areas:

(1) administrative services;

(2) curriculum development;

(3) data processing;

(4) distance learning and other telecommunication services;

(5) evaluation and research;

(6) staff development;

(7) media and technology centers;

(8) publication and dissemination of materials;

(9) pupil personnel services;

(10) planning;

(11) secondary, postsecondary, community, adult, and adult vocational education;

(12) teaching and learning services, including services for students with special
talents and special needs;

(13) employee personnel services;

(14) vocational rehabilitation;

(15) health, diagnostic, and child development services and centers;

(16) leadership or direction in early childhood and family education;

(17) community services;

(18) shared time programs;

(19) fiscal services and risk management programs new text begin , including health reinsurance
programs new text end ;

(20) technology planning, training, and support services;

(21) health and safety services;

(22) student academic challenges; and

(23) cooperative purchasing services.

new text begin An SC may contract for goods and services in conjunction with its health reinsurance
programs, including management, actuarial, investment, and legal services from others
within or without this state to ensure the efficient operation of these programs.
new text end

Sec. 2.

Minnesota Statutes 2004, section 471.61, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Reinsuring health risks. new text end

new text begin Any political subdivision, or any two or more
political subdivisions acting jointly, may provide for the reinsuring of risks incurred as a
result of providing the insurance or protection authorized by this section by participating
in a pool operated by a service cooperative or cooperatives pursuant to section 471.617,
subdivision 3a.
new text end

Sec. 3.

Minnesota Statutes 2004, section 471.617, subdivision 3, is amended to read:

Subd. 3.

Stop-loss coverage.

Any self-insurance plan covering fewer than 1,000
employees shall include excess or stop-loss coverage provided by a licensed insurance
company, an insurance company approved pursuant to sections 60A.195 to 60A.209,
or service plan corporation, but excess or stop-loss coverage need not be obtained for
long-term disability.

This excess or stop-loss coverage shall cover all eligible claims incurred during
the term of the policy or contract. In addition to excess or stop-loss coverage, the
self-insurance plan shall provide for reserving of an appropriate amount of funds to cover
the estimated cost of claims incurred, but unpaid, during the term of the policy or contract
which shall be added to the expected claim level. These funds shall be in addition to funds
reserved to cover the claims paid during the term of the policy or contract. The excess or
stop-loss coverage shall be provided at levels in excess of self-insured retention which is
appropriate, taking into account the number of covered persons in the group.

new text begin Coverage under subdivision 3a qualifies under this subdivision.
new text end

Sec. 4.

Minnesota Statutes 2004, section 471.617, is amended by adding a subdivision
to read:

new text begin Subd. 3a. new text end

new text begin Reinsurance pools. new text end

new text begin (a) A statutory or home rule charter city, county,
school district, or instrumentality of any of them may provide for the reinsuring of risks
incurred as a result of providing the health benefits authorized by this section through
a pool operated by a service cooperative or service cooperatives established pursuant
to section 123A.21.
new text end

new text begin (b) The commissioner of commerce shall supervise the operations of a reinsurance
pool by a service cooperative or cooperatives according to this section. The commissioner
of commerce may examine the cooperative or cooperatives. The reinsurance policy forms,
contracts, premium rates, and assessments of the service cooperative or cooperatives are
subject to the approval of the commissioner of commerce. The policy forms, contracts,
and premium rates are considered approved if not disapproved by the commissioner of
commerce within 60 days after the date they are filed with the commissioner of commerce.
Assessments made by the service cooperative or cooperatives are considered approved if
not disapproved by the commissioner of commerce within 15 business days after they
are filed with the commissioner of commerce. The service cooperative or cooperatives
shall notify the commissioner of all service cooperative or board meetings during which
it is contemplated that the operations of the reinsurance pool will be discussed, and
the commissioner or the commissioner's designee may attend these meetings. The
cooperative or cooperatives shall file an annual report with the commissioner on or before
July 1 of each year, beginning July 1, 2008, describing its reinsurance activities during
the preceding calendar year. The report must include a financial report and a summary of
reinsurance claims paid. The annual report must be available for public inspection.
new text end

Sec. 5. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 4 are effective the day following final enactment.
new text end