Minnesota Session Laws - 1983, Regular Session

  

                         Laws of Minnesota 1983 

                        CHAPTER 285--H.F.No. 765
           An act relating to insurance; permitting differing 
          benefit payments for services by designated health 
          care providers; amending Minnesota Statutes 1982, 
          section 72A.20, subdivision 15. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1982, section 72A.20, 
subdivision 15, is amended to read: 
    Subd. 15.  [PRACTICES NOT HELD TO BE DISCRIMINATION OR 
REBATES.] Nothing in subdivisions 8 and, 9, or 10, or in section 
72A.12, subdivisions 3 and 4, shall be construed as including 
within the definition of discrimination or rebates any of the 
following practices: 
    (1) In the case of any contract of life insurance or 
annuity, paying bonuses to policyholders or otherwise abating 
their premiums in whole or in part out of surplus accumulated 
from nonparticipating insurance, provided that any bonuses or 
abatement of premiums shall be fair and equitable to 
policyholders and for the best interests of the company and its 
policyholders; 
    (2) In the case of life insurance policies issued on the 
industrial debit plan, making allowance, to policyholders who 
have continuously for a specified period made premium payments 
directly to an office of the insurer, in an amount which fairly 
represents the saving in collection expense; 
    (3) Readjustment of the rate of premium for a group 
insurance policy based on the loss or expense experienced 
thereunder, at the end of the first or any subsequent policy 
year of insurance thereunder, which may be made retroactive only 
for such policy year;  
    (4) In the case of a group health insurance policy, the 
payment of differing amounts of reimbursement to insureds who 
elect to receive health care goods or services from providers 
designated by the insurer, provided that each insurer shall on 
or before August 1 of each year file with the commissioner 
summary data regarding the financial reimbursement offered to 
providers so designated.  
     Any insurer which proposes to offer an arrangement 
authorized under this clause shall disclose prior to its initial 
offering and on or before August 1 of each year thereafter as a 
supplement to its annual statement submitted to the commissioner 
pursuant to section 60A.13, subdivision 1, the following 
information:  
    (a) the name which the arrangement intends to use and its 
business address;  
    (b) the name, address and nature of any separate 
organization which administers the arrangement on the behalf of 
the insurers; and 
    (c) the names and addresses of all providers designated by 
the insurer under this clause and the terms of the agreements 
with designated health care providers.  
    The commissioner shall maintain a record of arrangements 
proposed under this clause, including a record of any complaints 
submitted relative to the arrangements. 
    Approved June 7, 1983