Minnesota Session Laws - 1990, Regular Session

  

                         Laws of Minnesota 1990 

                        CHAPTER 523-H.F.No. 2343 
           An act relating to insurance; accident and health; 
          providing for the classification and disclosure of 
          certain comprehensive health insurance data; 
          regulating the Minnesota comprehensive health 
          insurance plan; requiring insurers to provide written 
          materials on the Minnesota comprehensive health 
          insurance plan; amending Minnesota Statutes 1988, 
          sections 13.71, by adding a subdivision; 62E.10, 
          subdivision 9; 62E.14, by adding subdivisions; and 
          62E.15, subdivision 4; proposing coding for new law in 
          Minnesota Statutes, chapter 62E. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:  
     Section 1.  Minnesota Statutes 1988, section 13.71, is 
amended by adding a subdivision to read:  
    Subd. 6.  [COMPREHENSIVE HEALTH INSURANCE DATA.] The 
following data on eligible persons and enrollees of the state 
comprehensive health insurance plan are classified as private:  
all data collected or maintained by the Minnesota comprehensive 
health association, the writing carrier, and the department of 
commerce. 
    The Minnesota comprehensive health association is 
considered a state agency for purposes of chapter 13.  
    The Minnesota comprehensive health association may disclose 
data on eligible persons and enrollees of the state 
comprehensive health insurance plan to conduct actuarial and 
research studies, notwithstanding the classification of this 
data, if:  
    (1) the board authorizes the disclosure; 
    (2) no individual may be identified in the actuarial or 
research report; 
    (3) materials allowing an individual to be identified are 
returned or destroyed as soon as they are no longer needed; and 
    (4) the actuarial or research organization agrees not to 
disclose the information unless the disclosure would be 
permitted under this chapter if made by the association.  
    Sec. 2.  Minnesota Statutes 1988, section 62E.10, 
subdivision 9, is amended to read: 
    Subd. 9.  [EXPERIMENTAL DELIVERY METHOD.] The association 
may petition the commissioner of commerce for a waiver to allow 
the experimental use of alternative means of health care 
delivery.  The commissioner may approve the use of the 
alternative means the commissioner considers appropriate.  The 
commissioner may waive any of the requirements of this chapter 
and chapters 60A, 62A, and 62D in granting the waiver.  The 
commissioner may also grant to the association any additional 
powers as are necessary to facilitate the specific waiver, 
including the power to implement a provider payment schedule.  
    This subdivision is effective until August 1, 1990 1991. 
    The commissioner of commerce in consultation with the 
governor's commission on health plan regulatory reform shall 
study and report to the legislature by January 15, 1989, on the 
current means utilized to finance the annual operating deficits 
incurred under the association.  In conducting the study, the 
commissioner shall analyze any negative financial impacts which 
the current deficits are having on the contributing members of 
the association and recommend alternative sources of funding or 
other approaches which could be utilized to finance the 
operating deficit.  The study shall also address the current 
association funding inequities between employers which 
self-insure for employee health benefit coverage and those 
employers which have health coverage subject to state regulation.
    Sec. 3.  Minnesota Statutes 1988, section 62E.14, is 
amended by adding a subdivision to read: 
    Subd. 4a.  [WAIVER OF PREEXISTING CONDITIONS FOR MINNESOTA 
RESIDENTS.] A person may enroll in the comprehensive health plan 
with a waiver of the preexisting condition limitation described 
in subdivision 3, provided that the following requirements are 
met: 
    (1) the person is a Minnesota resident eligible to enroll 
in the comprehensive health plan; 
    (2) the person: 
    (a) would be eligible for continuation under federal or 
state law if continuation coverage were available or were 
required to be available; 
    (b) would be eligible for continuation under clause (a) 
except that the person was exercising continuation rights and 
the continuation period required under federal or state law has 
expired; or 
    (c) is eligible for continuation of health coverage under 
federal or state law; 
    (3) continuation coverage is not available; and 
    (4) the person applies for coverage within 90 days of 
termination of prior coverage from a policy or plan. 
    Coverage in the comprehensive health plan is effective on 
the date of termination of prior coverage.  The availability of 
conversion rights does not affect a person's rights under this 
subdivision. 
    Sec. 4.  Minnesota Statutes 1988, section 62E.14, is 
amended by adding a subdivision to read: 
    Subd. 4b.  [WAIVER OF PREEXISTING CONDITIONS FOR PERSONS 
COVERED BY RETIREE PLANS.] A person who was covered by a retiree 
health care plan may enroll in the comprehensive health plan 
with a waiver of the preexisting condition limitation described 
in subdivision 3, provided that the following requirements are 
met: 
    (1) the person is a Minnesota resident eligible to enroll 
in the comprehensive health plan; 
    (2) the person was covered by a retiree health care plan 
from an employer and the coverage is no longer available to the 
person; and 
    (3) the person applies for coverage within 90 days of 
termination of prior coverage. 
    Coverage in the comprehensive health plan is effective on 
the date of termination of prior coverage.  The availability of 
conversion rights does not affect a person's rights under this 
section. 
    Sec. 5.  [62E.14] [Subd. 3a.] [WAIVER OF PREEXISTING CONDITION.] 
    A person may enroll in the comprehensive health plan with a 
waiver of the preexisting condition limitation described in 
Minnesota Statutes, section 62E.14, subdivision 3, provided that 
the person meets the following requirements: 
    (1) group coverage was provided through a rehabilitation 
facility defined in Minnesota Statutes, section 129A.01, 
subdivision 6, and coverage was terminated; 
    (2) all other eligibility requirements for enrollment in 
the comprehensive health plan are met; and 
    (3) coverage is applied for within 90 days of termination 
of previous coverage. 
    Sec. 6.  Minnesota Statutes 1988, section 62E.15, 
subdivision 4, is amended to read: 
    Subd. 4.  Every insurer which rejects or applies 
underwriting restrictions to an applicant for accident and 
health insurance shall:  (1) provide the applicant with a 
written notice of rejection or the underwriting restrictions 
applied to the applicant in a manner consistent with the 
requirements in section 72A.499; (2) notify the applicant of the 
existence of the state plan, the requirements for being accepted 
in it, and the procedure for applying to it; and (3) provide the 
applicant with written materials explaining the state plan in 
greater detail.  This written material shall be provided by the 
association to every insurer at no charge. 
    Sec. 7.  [62E.19] [PAYMENTS FOR PREEXISTING CONDITIONS.] 
    Subdivision 1.  [EMPLOYER LIABILITY.] An employer is liable 
to the association for the costs of any preexisting conditions 
of the employer's former employees or their dependents during 
the first six months of coverage under the state comprehensive 
health insurance plan under the following conditions: 
    (1) the employer has terminated or laid off employees and 
is required to meet the notice requirements under section 
268.976, subdivision 3; 
    (2) the employer has failed to provide, arrange for, or 
make available continuation health insurance coverage required 
to be provided under federal or state law to employees or their 
dependents; and 
    (3) the employer's former employees or their dependents 
enroll in the state comprehensive health insurance plan with a 
waiver of the preexisting condition limitation under section 
62E.14, subdivision 4a or 5; or 
    (4) the employer has terminated or allowed the employer's 
plan of health insurance coverage to lapse within 90 days prior 
to the date of termination or layoff of an employee; and 
    (5) the employer's former employees or their dependents 
enroll in the state comprehensive health insurance plan with a 
waiver of the preexisting condition limitation under section 
62E.14, subdivision 4a or 5. 
    The employer shall pay a special assessment to the 
association for the costs of the preexisting conditions.  The 
special assessment may be assessed before the association makes 
the annual determination of each contributing member's liability 
as required under this chapter.  The association may enforce the 
obligation to pay the special assessment by action, as a claim 
in an insolvency proceeding, or by any other method not 
prohibited by law. 
     If the association makes the special assessment permitted 
by this subdivision, the association may also make any 
assessment of contributing members otherwise permitted by law, 
without regard to the special assessment permitted by this 
subdivision.  Contributing members must pay the assessment, 
subject to refund or adjustment, in the event of receipt by the 
association of any portion of the special assessment. 
    Subd. 2.  [EXEMPTION.] Subdivision 1 does not apply to a 
termination of or failure to implement an employee health 
benefit plan which results from or occurs during a strike or 
lockout, nor does it apply to employee health benefit plans 
separately provided by an employee organization or bargaining 
agent, regardless of any financial contribution to the plan by 
the employer. 
    Sec. 8.  [EFFECTIVE DATE.] 
    Sections 3, 4, and 7 are effective retroactively to March 
1, 1990.  Sections 1, 2, and 5 are effective the day following 
final enactment.  The 90-day requirement in sections 3 and 4 
does not apply to terminations of coverage occurring after March 
1, if application to or enrollment in the comprehensive health 
plan occurs within 90 days after final enactment. 
    Presented to the governor April 24, 1990 
    Signed by the governor April 26, 1990, 9:55 p.m.