SF 3582

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to insurance; enacting the Minnesota Freedom to Buy and Sell Act;
providing Minnesota employers and residents with the freedom to buy health
coverage approved for sale in any state; providing insurance companies the
freedom to sell in this state any health coverage permitted for sale in any
other state; amending Minnesota Statutes 2006, section 62A.02, by adding a
subdivision.

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

Section 1.

Minnesota Statutes 2006, section 62A.02, is amended by adding a
subdivision to read:

new text begin Subd. 8. new text end

new text begin Right to buy and sell health coverage approved in other state. new text end

new text begin (a) This
subdivision may be referenced as the Minnesota Freedom to Buy and Sell Act.
new text end

new text begin (b) For purposes of this subdivision:
new text end

new text begin (1) "Commissioner" means the commissioner of commerce or the commissioner of
health, as appropriate, depending upon which commissioner would have authority over
the insurance company or health plan if it were subject to the laws of this state.
new text end

new text begin (2) "Health plan" has the meaning given in section 62A.011, subdivision 3, but
including coverage described in clause (10) of that subdivision, and without regard to the
references in that subdivision to the entities providing the health plan being licensed in
or operating under the laws of this state.
new text end

new text begin (3) "Insurance company," "domestic," "alien," "foreign," and "state" have the
meanings given in this section. Insurance company includes a health maintenance
organization or health service plan corporation, whether nonprofit or for profit.
new text end

new text begin (c) Notwithstanding any other law of this state to the contrary, any resident of this
state and any employer that employs residents of this state may purchase a health plan
that has not been approved by the commissioner, if the health plan is permitted to be sold
in any other state.
new text end

new text begin (d) Notwithstanding any other law of this state to the contrary, any insurance
company, whether domestic, foreign, or alien, that is permitted to offer, sell, issue, or
renew a health plan in any other state under the laws of that state, may also do so with
respect to that health plan in this state. The insurance company need not have a certificate
of authority, license, or other authorization from the commissioner to do business in this
state. This paragraph does not exempt the insurance company from compliance with
chapter 303, relating to foreign business entities.
new text end

new text begin (e) Notwithstanding any other law of this state to the contrary, any insurance agent
licensed or otherwise permitted to offer and sell health plans in this state or in a state in
which the health plan is permitted to be offered and sold, may offer and sell to a resident of
this state or to an employer that employs residents of this state any health plan permitted
to be offered and sold under paragraph (d), and is not, in connection with that transaction,
subject to the laws of this state regulating insurance agents.
new text end

new text begin (f) Notwithstanding any other law of this state to the contrary, an insurance company
and a health plan offered, issued, sold, or renewed by the insurance company under
authority of this subdivision are:
new text end

new text begin (1) not, in connection with that health plan, subject to the authority of the
commissioner in any respect, and the insurance company need not provide any filing or
notification to the commissioner;
new text end

new text begin (2) not, in connection with that health plan, required to comply with any law of
this state relating to insurance companies or health plans, including, but not limited to,
chapters 45 and 60A to 72C; and
new text end

new text begin (3) subject to the tax laws of this state, including chapter 297I, on the same basis
as other insurance companies doing business in this state and other health plans sold in
this state.
new text end

new text begin EFFECTIVE DATE. new text end

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