1.1 	A bill for an act
1.2 	relating to insurance; prohibiting balance billing by
1.3 	health care providers and certain no-fault automobile
1.4 	insurance medical claims; making health care providers
1.5 	the party at interest in certain no-fault
1.6 	arbitrations; amending Minnesota Statutes 2004,
1.7 	section 65B.54, by adding a subdivision.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. Minnesota Statutes 2004, section 65B.54, is
1.10 	amended by adding a subdivision to read:
1.11 		Subd. 6.Balance billing by health care providers
1.12 	prohibited. (a) This subdivision applies to charges for medical
1.13 	expense benefits as defined in section 65B.44, subdivision 2, to
1.14 	the extent that a reparation obligor has rejected them under
1.15 	subdivision 5 on the basis that the health care was not
1.16 	medically necessary or on the basis that the charges exceed the
1.17 	usual and customary rate.
1.18 	(b) If a reparation obligor rejects, in whole or in part, a
1.19 	claim for health care provided to the claimant by a health care
1.20 	provider, for reasons specified in paragraph (a), the claimant
1.21 	is not obligated to pay the health care provider for the
1.22 	rejected charges.
1.23 	(c) The health care provider shall not bill the claimant
1.24 	for those charges or otherwise attempt to collect them from the
1.25 	claimant after they have been rejected by the insurer.
1.26 	(d) A health care provider whose charges are rejected, in
2.1 	whole or in part, under this section by a reparation obligor, is
2.2 	the party at interest and has standing to commence and pursue a
2.3 	claim for payment as a claimant against the reparation obligor
2.4 	in an arbitration proceeding under section 65B.525.  In such a
2.5 	proceeding, the insured may be required to attend the
2.6 	arbitration proceeding by either the reparation obligor or the
2.7 	health care provider, subject to the conditions provided in
2.8 	section 65B.56, subdivision 2.
2.9 	(e) A health care provider shall not require an insured to
2.10 	waive any provision of this section, and any such attempted
2.11 	waiver is void and unenforceable.

2.12 	Sec. 2. EFFECTIVE DATE.
 2.13 	Section 1 is effective January 1, 2006, and applies to
2.14 	medical expense benefits provided on or after that date.