SF 2075

as introduced - 87th Legislature (2011 - 2012) Posted on 02/24/2012 09:36am

A bill for an act
relating to insurance; permitting a small employer to retain small employer health
coverage when its workforce is reduced to one covered employee; amending
Minnesota Statutes 2010, section 62L.03, subdivision 1.

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

Section 1.

Minnesota Statutes 2010, section 62L.03, subdivision 1, is amended to read:

Subdivision 1.

Guaranteed issue and reissue.

(a) Every health carrier shall, as a
condition of authority to transact business in this state in the small employer market,
affirmatively market, offer, sell, issue, and renew any of its health benefit plans, on a
guaranteed issue basis, to any small employer, including a small employer covered by
paragraph (b), that meets the participation and contribution requirements of subdivision 3,
as provided in this chapter.

(b) A small employer that has its workforce reduced to one new text begin covered new text end employee may
continue coverage deleted text begin as deleted text end new text begin under new text end a small employer deleted text begin for 12 months from the date the group is
reduced to one employee deleted text end new text begin plan if the small employer plan has been in effect continuously
for at least 12 months immediately prior to the workforce reduction and the remaining
covered employee has been continuously covered under that plan during that entire period.
The health carrier must make renewals of the small employer plan available to that
employer on the same basis upon which renewals are available to employers that are still
small employers as defined under this chapter new text end .

(c) Notwithstanding paragraph (a), a health carrier may, at the time of coverage
renewal, modify the health coverage for a product offered in the small employer market if
the modification is consistent with state law, approved by the commissioner, and effective
on a uniform basis for all small employers purchasing that product other than through a
qualified association in compliance with section 62L.045, subdivision 2.

Paragraph (a) does not apply to a health benefit plan designed for a small employer
to comply with a collective bargaining agreement, provided that the health benefit plan
otherwise complies with this chapter and is not offered to other small employers, except
for other small employers that need it for the same reason. This paragraph applies only
with respect to collective bargaining agreements entered into prior to August 21, 1996,
and only with respect to plan years beginning before the later of July 1, 1997, or the date
upon which the last of the collective bargaining agreements relating to the plan terminates
determined without regard to any extension agreed to after August 21, 1996.

(d) Every health carrier participating in the small employer market shall make
available both of the plans described in section 62L.05 to small employers and shall fully
comply with the underwriting and the rate restrictions specified in this chapter for all
health benefit plans issued to small employers.

(e) A health carrier may cease to transact business in the small employer market as
provided under section 62L.09.

new text begin EFFECTIVE DATE. new text end

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