SF 3094

2nd Engrossment - 86th Legislature (2009 - 2010) Posted on 03/23/2010 01:36pm

A bill for an act
relating to health; requiring reporting of certain administrative expense data;
establishing the Advisory Group on Administrative Expenses; appropriating
money; amending Minnesota Statutes 2008, section 62D.08, by adding a
subdivision; proposing coding for new law in Minnesota Statutes, chapter 62D.

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

Section 1.

Minnesota Statutes 2008, section 62D.08, is amended by adding a
subdivision to read:

new text begin Subd. 7. new text end

new text begin Consistent administrative expenses and investment income reporting.
new text end

new text begin (a) Every health maintenance organization must directly allocate administrative expenses
to specific lines of business or products when such information is available. Remaining
expenses that cannot be directly allocated must be allocated based on other methods, as
recommended by the Advisory Group on Administrative Expenses. Health maintenance
organizations must submit this information using the reporting template provided by the
commissioner of health.
new text end

new text begin (b) Every health maintenance organization must allocate investment income based
on cumulative net income over time by business line or product and must submit this
information using the reporting template provided by the commissioner of health.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

new text begin [62D.31] ADVISORY GROUP ON ADMINISTRATIVE EXPENSES.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The Advisory Group on Administrative Expenses is
established to develop detailed standards and procedures for examining the reasonableness
of administrative expenses by individual publicly funded programs.
new text end

new text begin Subd. 2. new text end

new text begin Duties. new text end

new text begin In order to implement the recommendations of the commissioner
of health provided in the March 2009 report on administrative expenses and investment
income for health plans and county-based purchasers, the advisory group must make
recommendations on the following:
new text end

new text begin (1) consistent guidelines and reporting requirements, including development of a
reporting template, for health maintenance organizations and county-based purchasers that
participate in publicly funded programs; and
new text end

new text begin (2) standards and procedures for examining the reasonableness of expenses reported
to the commissioner of health under clause (1).
new text end

new text begin Subd. 3. new text end

new text begin Membership. new text end

new text begin (a) The advisory group shall be chaired by the commissioner
of health and shall consist of nine members as follows:
new text end

new text begin (1) the commissioner of health or the commissioner's designee;
new text end

new text begin (2) the commissioner of human services or the commissioner's designee;
new text end

new text begin (3) the commissioner of commerce or the commissioner's designee;
new text end

new text begin (4) three members appointed by the commissioner of health to represent health
maintenance organizations and county-based purchasing plans; and
new text end

new text begin (5) three members appointed by the commissioner of health to represent:
new text end

new text begin (i) hospitals;
new text end

new text begin (ii) physicians; and
new text end

new text begin (iii) other health care providers.
new text end

new text begin (b) The appointments required under this subdivision shall be completed by August
1, 2010.
new text end

new text begin Subd. 4. new text end

new text begin Administration. new text end

new text begin The commissioner of health shall convene the first
meeting of the advisory group by September 1, 2010, and shall provide administrative
support and staff. The commissioner of health may contract with a consultant to provide
professional assistance and expertise to the advisory group.
new text end

new text begin Subd. 5. new text end

new text begin Recommendations. new text end

new text begin The Advisory Group on Administrative Expenses
must report its recommendations, including any proposed legislation necessary to
implement the recommendations, to the commissioner of health and to the chairs and
ranking minority members of the legislative committees and divisions with jurisdiction
over health policy and finance by February 15, 2012.
new text end

new text begin Subd. 6. new text end

new text begin Expiration. new text end

new text begin This section expires after submission of the report required
under subdivision 5 or June 30, 2012, whichever is sooner.
new text end

Sec. 3. new text begin APPROPRIATION.
new text end

new text begin $100,000 is appropriated from the general fund to the commissioner of health in
fiscal year 2011 for the advisory group established under Minnesota Statutes, section
62D.31.
new text end