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Minnesota Legislature

Office of the Revisor of Statutes

SF 781

as introduced - 91st Legislature (2019 - 2020) Posted on 02/04/2019 02:22pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to health care; requiring nonprofit health service plan corporations and
health maintenance organizations to only enter into contracts with nonprofit
corporations; prohibiting the sharing of patient identifying data with any
organization or agency located in another country; amending Minnesota Statutes
2018, sections 62C.13, subdivisions 3, 4; 62D.05, subdivisions 3, 4.

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

Section 1.

Minnesota Statutes 2018, section 62C.13, subdivision 3, is amended to read:


Subd. 3.

Similar organizations.

A service plan corporation may enter into contracts or
other arrangements with similar organizations or new text beginother nonprofit new text endcorporations domiciled in
this or any other state or country, for transfer of subscribers, reciprocal or joint benefits, or
for other joint undertakings approved by its board and not inconsistent with the purposes
of Laws 1971, chapter 568, provided, however, that in no event shall a service plan
corporation enter into any such contract, arrangement or undertaking which would have the
effect of relieving such corporation of its duties and obligations to any subscribers unless
the corporation has received the prior written consent of the affected subscribers, or a
qualified agent or representative of such subscribers.

Sec. 2.

Minnesota Statutes 2018, section 62C.13, subdivision 4, is amended to read:


Subd. 4.

Administrative services.

new text begin(a) new text endA service plan corporation may enter into contracts
or other arrangements with providers or with any agency, instrumentality or political
subdivision of the United States or any state or country or any other organization for
administrative, accounting, record keeping, data processing, or planning, facility or service
related to rendering or furnishing health services.

new text begin (b) Notwithstanding this section, no data containing patient identifying data, including
patient health records or claims files, shall be sent to or shared with a provider, corporation,
organization, or agency located or domiciled in another country other than the United States
for any purpose, including the purposes identified in this section.
new text end

Sec. 3.

Minnesota Statutes 2018, section 62D.05, subdivision 3, is amended to read:


Subd. 3.

Contracts; health services.

A health maintenance organization may contract
with providers of health care services to render the services the health maintenance
organization has promised to provide under the terms of its health maintenance contracts,
may, subject to section 62D.12, subdivision 11, enter into separate prepaid dental contracts,
or other separate health service contracts, may, subject to the limitations of section 62D.04,
subdivision 1
, clause (f), contract with new text beginnonprofit new text endinsurance companies, including nonprofit
health service plan corporations or other new text beginnonprofit new text endhealth maintenance organizations, for
insurance, indemnity or reimbursement of its cost of providing health care services for
enrollees or against the risks incurred by the health maintenance organization, may contract
with insurance companies and nonprofit health service plan corporations for insolvency
insurance coverage, and may contract with new text beginnonprofit new text endinsurance companies and nonprofit
health service plan corporations to insure or cover the enrollees' costs and expenses in the
health maintenance organization, including the customary prepayment amount and any
co-payment obligations, and may contract to provide reinsurance or insolvency insurance
coverage to new text beginnonprofit new text endhealth insurers or nonprofit health service plan corporations.

Sec. 4.

Minnesota Statutes 2018, section 62D.05, subdivision 4, is amended to read:


Subd. 4.

Contracts; administrative services.

new text begin(a) new text endA health maintenance organization
may contract with other persons for the provision of services, including, but not limited to,
managerial and administration, marketing and enrolling, data processing, actuarial analysis,
and billing services. If contracts are made with insurance companies or nonprofit health
service plan corporations, such companies or corporations must be authorized to transact
business in this statenew text begin and must be incorporated as a nonprofit corporationnew text end.

new text begin (b) Notwithstanding this section, no data containing patient identifying data, including
patient health records or claims files, shall be sent to or shared with a provider, corporation,
organization, or agency located or domiciled in another country other than the United States,
for any purpose, including the purposes identified in this section.
new text end