SF 389

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 03/06/2012 02:08pm

A bill for an act
relating to insurance; regulating no-fault medical expense loss benefits; adjusting
disability and funeral expense benefits; amending Minnesota Statutes 2010,
section 65B.44, subdivisions 1, 3, 4.

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

Section 1.

Minnesota Statutes 2010, section 65B.44, subdivision 1, is amended to read:

Subdivision 1.

Inclusions.

(a) Basic economic loss benefits shall provide
reimbursement for all loss suffered through injury arising out of the maintenance or use
of a motor vehicle, subject to any applicable deductibles, exclusions, disqualifications,
and other conditions, and shall provide a minimum of $40,000 for loss arising out of the
injury of any one person, consisting of:

(1) $20,000 for medical expense loss arising out of injury to any one person; and

(2) a total of $20,000 for income loss, replacement services loss, funeral expense
loss, survivor's economic loss, and survivor's replacement services loss arising out of the
injury to any one person.

(b) Notwithstanding any other law to the contrary, a person entitled to basic
economic loss benefits under this chapter is entitled to the full medical expense benefits set
forth in subdivision 2, and may not receive medical expense benefits that are in any way
less than those provided for in subdivision 2, or that involve any preestablished limitations
on the benefits. Medical expenses must be reasonable and must be for necessary medical
care as provided in subdivision 2. This paragraph shall not be deemed to alter the
obligations of an insured or the rights of a reparation obligor as set forth in section 65B.56. new text begin
This paragraph does not apply to medical expense loss that is subject to paragraph (d).
new text end

(c) No reparation obligor or health plan company as defined in section 62Q.01,
subdivision 4, may enter into or renew any contract that provides, or has the effect of
providing, managed care services to no-fault claimants. For the purposes of this section,
"managed care services" is defined as any program of medical services that uses health care
providers managed, owned, employed by, or under contract with a health plan company.

new text begin (d) Medical expense loss for diagnosis and treatment of a soft tissue injury is covered
only if provided in compliance with the codes, treatment standards, and fee schedules
provided in Minnesota Rules, chapter 5221. The term soft tissue injury specifically
includes, without limitation, any injury with treatment covered by the procedure codes set
forth in Minnesota Rules, chapter 5221, other than such treatment delivered by a health
care provider defined in Minnesota Rules, part 5221.0100, subpart 11a, or by a medical
facility described in section 176.136, subdivision 1b, paragraphs (a) and (b).
new text end

Sec. 2.

Minnesota Statutes 2010, section 65B.44, subdivision 3, is amended to read:

Subd. 3.

Disability and income loss benefits.

Disability and income loss benefits
shall provide compensation for 85 percent of the injured person's loss of present and future
gross income from inability to work proximately caused by the nonfatal injury subject
to a maximum of deleted text begin $250 deleted text end new text begin $500 new text end per week. Loss of income includes the costs incurred by a
self-employed person to hire substitute employees to perform tasks which are necessary to
maintain the income of the injured person, which are normally performed by the injured
person, and which cannot be performed because of the injury.

If the injured person is unemployed at the time of injury and is receiving or is
eligible to receive unemployment benefits under chapter 268, but the injured person loses
eligibility for those benefits because of inability to work caused by the injury, disability
and income loss benefits shall provide compensation for the lost benefits in an amount
equal to the unemployment benefits which otherwise would have been payable, subject to
a maximum of deleted text begin $250 deleted text end new text begin $500 new text end per week.

Compensation under this subdivision shall be reduced by any income from substitute
work actually performed by the injured person or by income the injured person would
have earned in available appropriate substitute work which the injured person was capable
of performing but unreasonably failed to undertake.

For the purposes of this section "inability to work" means disability which prevents
the injured person from engaging in any substantial gainful occupation or employment
on a regular basis, for wage or profit, for which the injured person is or may by training
become reasonably qualified. If the injured person returns to employment and is unable by
reason of the injury to work continuously, compensation for lost income shall be reduced
by the income received while the injured person is actually able to work. The weekly
maximums may not be prorated to arrive at a daily maximum, even if the injured person
does not incur loss of income for a full week.

For the purposes of this section, an injured person who is "unable by reason of the
injury to work continuously" includes, but is not limited to, a person who misses time
from work, including reasonable travel time, and loses income, vacation, or sick leave
benefits, to obtain medical treatment for an injury arising out of the maintenance or use
of a motor vehicle.

Sec. 3.

Minnesota Statutes 2010, section 65B.44, subdivision 4, is amended to read:

Subd. 4.

Funeral and burial expenses.

Funeral and burial benefits shall be
reasonable expenses not in excess of deleted text begin $2,000 deleted text end new text begin $5,000 new text end , including expenses for cremation or
delivery under the Darlene Luther Revised Uniform Anatomical Gift Act, chapter 525A.