SF 3095

1st Engrossment - 86th Legislature (2009 - 2010) Posted on 03/11/2010 01:59pm

A bill for an act
relating to health insurance; requiring the commissioner of commerce to hold a
public hearing before approval of certain rate increases; amending Minnesota
Statutes 2008, section 62A.02, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2008, section 62A.02, is amended by adding a
subdivision to read:

new text begin Subd. 5b. new text end

new text begin Public hearing; certain rate increases. new text end

new text begin (a) Upon a rate increase filing
submitted by a health carrier for a nongroup health plan, small employer health plan,
long-term care insurance policy, or a Medicare supplemental policy of over eight percent,
the commissioner shall no later than ten business days after receipt of the filing set a
public hearing date in the following geographical areas if the rate increase would affect
at least 100 members in the surrounding areas: Duluth, St. Cloud, Rochester, and the
metropolitan area. The commissioner shall post the date, place, and time of each hearing
and the filing in a conspicuous place on the department's Web site. The posting shall
include all supplemental information that is part of the filing and shall be updated to
include any correspondence between the department and the filer.
new text end

new text begin (b) The hearings described in paragraph (a) shall be held no later than 90 calendar
days before the proposed effective date of the rate increase, and shall be conducted
in accordance with chapter 14.
new text end

new text begin (c) Notwithstanding subdivisions 2, 3, and 3a, no rate increase over eight percent
shall be approved or deemed approved by the commissioner until the public hearings
described in this subdivision have occurred.
new text end

new text begin (d) Upon setting the date, place, and time of the hearing on the proposed rate, the
commissioner shall immediately notify the filer of the date, place, and time of the hearing.
Not later than ten business days after receipt of the notice, the filer shall notify by mail
all enrollees of the:
new text end

new text begin (1) proposed rate for each insured's specific health plan, including any increase
because of the enrollee's age or health status and the percentage increase of the proposed
rate from the current rate;
new text end

new text begin (2) a statement that the proposed rate is subject to the Department of Commerce's
review and approval; and
new text end

new text begin (3) the date, place, and time of the hearings on the proposed rate.
new text end

new text begin (e) The commissioner or the commissioner's designee, and an executive from
the health carrier sponsoring the applicable health plan, must be available to provide
testimony at the public hearing.
new text end

new text begin (f) The health carrier sponsoring the health plan shall pay all expenses reasonably
attributable to the public hearing held pursuant to this subdivision. The commissioner shall
determine the expenses and shall render a bill to the health carrier after the conclusion of
the hearing. The amount billed must be paid by the health carrier into the state treasury
within 30 days of presentment. Within 30 days after the date of presentment of any bill as
required by this subdivision, a health carrier may file with the commissioner objections to
the bill setting out the grounds upon which it is claimed the bill is excessive, erroneous,
unlawful, or invalid. The commissioner shall hold a hearing on the objection within 60
days in accordance with chapter 14.
new text end

new text begin (g) This subdivision expires for rate increases filed after January 1, 2014.
new text end

Sec. 2. new text begin EFFECTIVE DATE.
new text end

new text begin Section 1 is effective for rate increases due to take effect on or after January 1, 2011.
new text end