Minnesota Session Laws - 1991, Regular Session

  

                         Laws of Minnesota 1991 

                        CHAPTER 109-S.F.No. 635 
           An act relating to commerce; prohibiting certain 
          agreements between insurers and health care providers; 
          proposing coding for new law in Minnesota Statutes, 
          chapter 62A. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [62A.63] [DEFINITIONS.] 
    Subdivision 1.  [APPLICATION.] For purposes of section 2, 
the terms defined in this section have the meanings given them.  
    Subd. 2.  [HEALTH CARE PROVIDER.] "Health care provider" 
means a person, hospital, or health care facility, organization, 
or corporation that is licensed, certified, or otherwise 
authorized by the laws of this state to provide health care. 
    Subd. 3.  [INSURER.] "Insurer" means a health insurer 
regulated under this chapter, service plan corporation as 
defined under section 62C.02, subdivision 6, and health 
maintenance organization as defined under section 62D.02, 
subdivision 4. 
    Sec. 2.  [62A.64] [HEALTH INSURANCE; PROHIBITED 
AGREEMENTS.] 
    An agreement between an insurer and a health care provider 
may not: 
    (1) prohibit, or grant the insurer an option to prohibit, 
the provider from contracting with other insurers or payors to 
provide services at a lower price than the payment specified in 
the contract; 
    (2) require, or grant the insurer an option to require, the 
provider to accept a lower payment in the event the provider 
agrees to provide services to any other insurer or payor at a 
lower price; or 
    (3) require, or grant the insurer an option of, termination 
or renegotiation of the existing contract in the event the 
provider agrees to provide services to any other insurer or 
payor at a lower price. 
     Sec. 3.  [EFFECTIVE DATE.] 
    Sections 1 and 2 are effective the day following final 
enactment and apply to contracts entered, renewed, or amended on 
or after the effective date. 
    Presented to the governor May 16, 1991 
    Signed by the governor May 19, 1991, 5:15 p.m.