1.1 	A bill for an act
1.2 	relating to health care coverage; providing a temporary program to help pay for 
1.3 	health insurance premiums; requiring audits by the legislative auditor; modifying 
1.4 	requirements for health maintenance organizations; modifying provisions governing 
1.5 	health insurance; authorizing agricultural cooperative health plans; modifying a 
1.6 	tax provision; authorizing transition of care coverage for 2017; requiring reports; 
1.7 	transferring funds; appropriating money;amending Minnesota Statutes 2016, 
1.8 	sections 60A.08, subdivision 15; 60A.235, subdivision 3; 60A.236; 62D.02, 
1.9 	subdivision 4; 62D.03, subdivision 1; 62D.05, subdivision 1; 62D.06, subdivision 
1.10 	1; 62D.19; 62E.02, subdivision 3; 62K.10, by adding a subdivision; 62L.12, 
1.11 	subdivision 2; 297I.05, subdivision 12; proposing coding for new law in Minnesota 
1.12 	Statutes, chapters 62H; 62Q; repealing Minnesota Statutes 2016, section 62D.12, 
1.13 	subdivision 9; Laws 2007, chapter 147, article 12, section 14, as amended; Laws 
1.14 	2010, chapter 384, section 99; Laws 2013, chapter 135, article 1, section 9.
1.15 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.16 	ARTICLE 1
1.17 	PREMIUM SUBSIDY PROGRAM

1.18 	Section 1. DEFINITIONS.
 1.19 		Subdivision 1.Scope. For purposes of sections 1 to 6, the following terms have the 
1.20 	meanings given.
1.21 		Subd. 2.Commissioner. "Commissioner" means the commissioner of Minnesota 
1.22 	Management and Budget.
1.23 		Subd. 3.Eligible individual. "Eligible individual" means a Minnesota resident who:
1.24 	(1) is not receiving a premium tax credit under Code of Federal Regulations, title 26, 
1.25 	section 1.36B-2, as of the date their coverage is effectuated;
2.1 	(2) is not enrolled in public program coverage under Minnesota Statutes, section 
2.2 	256B.055, or 256L.04; and
2.3 	(3) purchased an individual health plan from a health carrier in the individual market.
2.4 		Subd. 4.Gross premium. "Gross premium" means the amount billed for a health plan 
2.5 	purchased by an eligible individual prior to a premium subsidy in a calendar year.
2.6 		Subd. 5.Health carrier. "Health carrier" has the meaning given in Minnesota Statutes, 
2.7 	section 62A.011, subdivision 2.
2.8 		Subd. 6.Individual health plan. "Individual health plan" has the meaning given in 
2.9 	Minnesota Statutes, section 62A.011, subdivision 4.
2.10 		Subd. 7.Individual market. "Individual market" has the meaning given in Minnesota 
2.11 	Statutes, section 62A.011, subdivision 5.
2.12 		Subd. 8.Net premium. "Net premium" means the gross premium less the premium 
2.13 	subsidy.
2.14 		Subd. 9.Premium subsidy. "Premium subsidy":
2.15 	(1) is a payment made on behalf of eligible individuals for the promotion of general 
2.16 	welfare, and is not compensation for any services;
2.17 	(2) is equal to 25 percent of the monthly gross premium otherwise paid by or on behalf 
2.18 	of the eligible individual for coverage purchased in the individual market, that covers the 
2.19 	eligible individual and the eligible individual's spouse and dependents, or the percentage 
2.20 	established by the commissioner under section 2, subdivision 3, paragraph (c); and
2.21 	(3) is excluded from any calculation used to determine eligibility within any of the 
2.22 	Department of Human Services programs.

2.23 	Sec. 2. PAYMENT TO HEALTH CARRIERS ON BEHALF OF ELIGIBLE 
2.24 	INDIVIDUALS.
 2.25 		Subdivision 1.Program established. The commissioner of Minnesota Management 
2.26 	and Budget, in consultation with the commissioner of commerce and the commissioner of 
2.27 	human services, shall establish and administer the premium subsidy program authorized by 
2.28 	this act, to help eligible individuals pay for coverage in the individual market in 2017.
2.29 		Subd. 2.Premium subsidy provided. As soon as practicable, but no later than April 
2.30 	30, 2017, health carriers shall begin paying a premium subsidy to each eligible individual 
2.31 	who purchases a health plan in the individual market, for all the months for which the net 
3.1 	premium is paid. An eligible individual shall pay the net premium amount to the health 
3.2 	carrier.
3.3 		Subd. 3.Payments to health carriers. (a) The commissioner shall make payments to 
3.4 	health carriers on behalf of eligible individuals effectuating coverage for calendar year 2017, 
3.5 	for the months in that year for which the individual has paid the net premium amount to the 
3.6 	health carrier. Payments to health carriers shall be based on the premium subsidy available 
3.7 	to eligible individuals in the individual market, regardless of the cost of coverage purchased. 
3.8 	The commissioner shall not withhold payments because a health carrier cannot prove an 
3.9 	enrollee is an eligible individual.
3.10 	(b) Health carriers seeking reimbursement from the commissioner must submit an invoice 
3.11 	and supporting information to the commissioner, using a form developed by the 
3.12 	commissioner, in order to be eligible for payment. The commissioner shall finalize the form 
3.13 	by March 1, 2017.
3.14 	(c) Total state payments to health carriers must be made within the limits of the available 
3.15 	appropriation. The commissioner shall reimburse health carriers at the full requested amount 
3.16 	up to the level of the appropriation. The commissioner, by July 15, 2017, shall determine 
3.17 	whether the available appropriation will be sufficient to provide premium subsidies equal 
3.18 	to 25 percent of the gross premium for the period September 1, 2017, through December 
3.19 	31, 2017. If the commissioner determines that the available appropriation is not sufficient, 
3.20 	the commissioner shall reduce the premium subsidy percentage, beginning September 1, 
3.21 	2017, through the remainder of the calendar year, by an amount sufficient to ensure that the 
3.22 	total amount of premium subsidies provided for the calendar year does not exceed the 
3.23 	available appropriation. The commissioner shall notify health carriers of any reduced 
3.24 	premium subsidy percentage within five days of making a determination. Health carriers 
3.25 	shall provide enrollees with at least 30 days' notice of any reduction in the premium subsidy 
3.26 	percentage.
3.27 	(d) The commissioner shall consider health carriers as vendors under Minnesota Statutes, 
3.28 	section 16A.124, subdivision 3, and each monthly invoice shall represent the completed 
3.29 	delivery of the service.
3.30 		Subd. 4.Data practices. (a) The definitions in Minnesota Statutes, section 13.02, apply 
3.31 	to this subdivision.
3.32 	(b) Government data on an enrollee or health carrier under this section are private data 
3.33 	on individuals or nonpublic data, except that the total reimbursement requested by a health 
3.34 	carrier and the total state payment to the health carrier are public data.
4.1 	(c) Notwithstanding Minnesota Statutes, section 138.17, government data on an enrollee 
4.2 	or health carrier under this section must be destroyed by June 30, 2018, or upon completion 
4.3 	by the legislative auditor of the audits required by section 3, whichever is later.

4.4 	Sec. 3. AUDITS.
 4.5 	(a) The legislative auditor shall conduct audits of the health carriers' supporting data, as 
4.6 	prescribed by the commissioner, to determine whether payments align with criteria 
4.7 	established in sections 1 and 2. The commissioner of human services shall provide data as 
4.8 	necessary to the legislative auditor to complete the audit. The commissioner shall withhold 
4.9 	or charge back payments to the health carriers to the extent they do not align with the criteria 
4.10 	established in sections 1 and 2, as determined by the audit.
4.11 	(b) The legislative auditor shall audit the extent to which health carriers provided premium 
4.12 	subsidies to persons meeting the residency and other eligibility requirements specified in 
4.13 	section 1, subdivision 3. The legislative auditor shall report to the commissioner the amount 
4.14 	of premium subsidies provided by each health carrier to persons not eligible for a premium 
4.15 	subsidy. The commissioner, in consultation with the commissioners of commerce and health, 
4.16 	shall develop and implement a process to recover from health carriers the amount of premium 
4.17 	subsidies received for enrollees determined to be ineligible for premium subsidies by the 
4.18 	legislative auditor. The legislative auditor, when conducting the required audit, and the 
4.19 	commissioner, when determining the amount of premium subsidy to be recovered, may 
4.20 	take into account the extent to which a health carrier makes use of the Minnesota eligibility 
4.21 	system, as defined in Minnesota Statutes, section 62V.055, subdivision 1.

4.22 	Sec. 4. APPLICABILITY OF GROSS PREMIUM.
 4.23 	Notwithstanding premium subsidies provided under section 2, the premium base for 
4.24 	calculating the amount of any applicable premium taxes under Minnesota Statutes, chapter 
4.25 	297I, shall be the gross premium for health plans purchased by eligible individuals in the 
4.26 	individual market.

4.27 	Sec. 5. SUNSET.
 4.28 	This article sunsets June 30, 2018.

4.29 	Sec. 6. TRANSFER.
 4.30 	$326,945,000 in fiscal year 2017 is transferred from the budget reserve account in 
4.31 	Minnesota Statutes, section 16A.152, subdivision 1a, to the general fund.

5.1 	Sec. 7. APPROPRIATIONS.
 5.2 	(a) $311,788,000 in fiscal year 2017 is appropriated from the general fund to the 
5.3 	commissioner of management and budget for premium assistance under section 2. This 
5.4 	appropriation is onetime and is available through June 30, 2018.
5.5 	(b) $157,000 in fiscal year 2017 is appropriated from the general fund to the legislative 
5.6 	auditor for purposes of section 3. This appropriation is onetime.
5.7 	(c) Any unexpended amount from the appropriation in paragraph (a) after June 30, 2018, 
5.8 	shall be transferred on July 1, 2018, from the general fund to the budget reserve account 
5.9 	under Minnesota Statutes, section 16A.152, subdivision 1a.

5.10 	Sec. 8. EFFECTIVE DATE.
 5.11 	Sections 1 to 7 are effective the day following final enactment.

5.12 	ARTICLE 2
5.13 	INSURANCE MARKET REFORMS

5.14 	Section 1. Minnesota Statutes 2016, section 60A.08, subdivision 15, is amended to read:
5.15 		Subd. 15.Classification of insurance filings data. (a) All forms, rates, and related 
5.16 	information filed with the commissioner under section 61A.02 shall be nonpublic data until 
5.17 	the filing becomes effective.
5.18 	(b) All forms, rates, and related information filed with the commissioner under section 
5.19 	62A.02 shall be nonpublic data until the filing becomes effective.
5.20 	(c) All forms, rates, and related information filed with the commissioner under section 
5.21 	62C.14, subdivision 10, shall be nonpublic data until the filing becomes effective.
5.22 	(d) All forms, rates, and related information filed with the commissioner under section 
5.23 	70A.06 shall be nonpublic data until the filing becomes effective.
5.24 	(e) All forms, rates, and related information filed with the commissioner under section 
5.25 	79.56 shall be nonpublic data until the filing becomes effective.
5.26 	(f) Notwithstanding paragraphs (b) and (c), for all rate increases subject to review under 
5.27 	section 2794 of the Public Health Services Act and any amendments to, or regulations, or 
5.28 	guidance issued under the act that are filed with the commissioner on or after September 1, 
5.29 	2011, the commissioner:
5.30 	(1) may acknowledge receipt of the information;
6.1 	(2) may acknowledge that the corresponding rate filing is pending review;
6.2 	(3) must provide public access from the Department of Commerce's Web site to parts I 
6.3 	and II of the Preliminary Justifications of the rate increases subject to review; and
6.4 	(4) must provide notice to the public on the Department of Commerce's Web site of the 
6.5 	review of the proposed rate, which must include a statement that the public has 30 calendar 
6.6 	days to submit written comments to the commissioner on the rate filing subject to review.
6.7 	(g) Notwithstanding paragraphs (b) and (c), for all proposed premium rates filed with 
6.8 	the commissioner for individual health plans, as defined in section 62A.011, subdivision 4, 
6.9 	and small group health plans, as defined in section 62K.03, subdivision 12, the commissioner 
6.10 	must provide public access on the Department of Commerce's Web site to compiled data 
6.11 	of the proposed changes to rates, separated by health plan and geographic rating area, within 
6.12 	ten business days after the deadline by which health carriers, as defined in section 62A.011, 
6.13 	subdivision 2, must submit proposed rates to the commissioner for approval.

6.14 	EFFECTIVE DATE. This section is effective 30 days following final enactment.

6.15 	Sec. 2. Minnesota Statutes 2016, section 60A.235, subdivision 3, is amended to read:
6.16 		Subd. 3.Health plan policies issued as stop loss coverage. (a) An insurance company 
6.17 	or health carrier issuing or renewing an insurance policy or other evidence of coverage, that 
6.18 	provides coverage to an employer for health care expenses incurred under an 
6.19 	employer-sponsored plan provided to the employer's employees, retired employees, or their 
6.20 	dependents, shall issue the policy or evidence of coverage as a health plan if the policy or 
6.21 	evidence of coverage:
6.22 	(1) has a specific attachment point for claims incurred per individual that is lower than 
6.23 	$20,000; or
6.24 	(2) has an aggregate attachment point, for groups of 50 or fewer, that is lower than the 
6.25 	greater of:
6.26 	(i) $4,000 times the number of group members;
6.27 	(ii) 120 percent of expected claims; or
6.28 	(iii) $20,000; or
6.29 	(3) (2) has an aggregate attachment point for groups of 51 or more that is lower than 
6.30 	110 percent of expected claims.
7.1 	(b) An insurer shall determine the number of persons in a group, for the purposes of this 
7.2 	section, on a consistent basis, at least annually. Where the insurance policy or evidence of 
7.3 	coverage applies to a contract period of more than one year, the dollar amounts set forth in 
7.4 	paragraph (a), clauses clause (1) and (2), must be multiplied by the length of the contract 
7.5 	period expressed in years.
7.6 	(c) The commissioner may adjust the constant dollar amounts provided in paragraph 
7.7 	(a), clauses (1), (2), and (3), on January 1 of any year, based upon changes in the medical 
7.8 	component of the Consumer Price Index (CPI). Adjustments must be in increments of $100 
7.9 	and must not be made unless at least that amount of adjustment is required. The commissioner 
7.10 	shall publish any change in these dollar amounts at least six months before their effective 
7.11 	date.
7.12 	(d) (c) A policy or evidence of coverage issued by an insurance company or health carrier 
7.13 	that provides direct coverage of health care expenses of an individual including a policy or 
7.14 	evidence of coverage administered on a group basis is a health plan regardless of whether 
7.15 	the policy or evidence of coverage is denominated as stop loss coverage.

7.16 	EFFECTIVE DATE. This section is effective June 1, 2017, and applies to policies or 
7.17 	evidence of coverage offered, issued, or renewed to an employer on or after that date.

7.18 	Sec. 3. Minnesota Statutes 2016, section 60A.236, is amended to read:
7.19 	60A.236 STOP LOSS REGULATION; SMALL EMPLOYER COVERAGE.
7.20 	A contract providing stop loss coverage, issued or renewed to a small employer, as 
7.21 	defined in section 62L.02, subdivision 26, or to a plan sponsored by a small employer, must 
7.22 	include a claim settlement period no less favorable to the small employer or plan than 
7.23 	coverage of all the following:
7.24 	(1) claims incurred during the contract period regardless of when the claims are; and
7.25 	(2) paid by the plan during the contract period or within three months after expiration 
7.26 	of the contract period.

7.27 	EFFECTIVE DATE. This section is effective June 1, 2017, and applies to policies or 
7.28 	evidence of coverage offered, issued, or renewed to an employer on or after that date.

7.29 	Sec. 4. Minnesota Statutes 2016, section 62D.02, subdivision 4, is amended to read:
7.30 		Subd. 4.Health maintenance organization. (a) "Health maintenance organization" 
7.31 	means a nonprofitforeign or domestic corporation organized under chapter 317A, or a local 
8.1 	governmental unit as defined in subdivision 11, controlled and operated as provided in 
8.2 	sections 62D.01 to 62D.30, which provides, either directly or through arrangements with 
8.3 	providers or other persons, comprehensive health maintenance services, or arranges for the 
8.4 	provision of these services, to enrollees on the basis of a fixed prepaid sum without regard 
8.5 	to the frequency or extent of services furnished to any particular enrollee.
8.6 	(b) [Expired]

8.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

8.8 	Sec. 5. Minnesota Statutes 2016, section 62D.03, subdivision 1, is amended to read:
8.9 		Subdivision 1.Certificate of authority required. Notwithstanding any law of this state 
8.10 	to the contrary, any nonprofit foreign or domestic corporation organized to do so or a local 
8.11 	governmental unit may apply to the commissioner of health for a certificate of authority to 
8.12 	establish and operate a health maintenance organization in compliance with sections 62D.01
8.13 	to 62D.30. No person shall establish or operate a health maintenance organization in this 
8.14 	state, nor sell or offer to sell, or solicit offers to purchase or receive advance or periodic 
8.15 	consideration in conjunction with a health maintenance organization or health maintenance 
8.16 	contract unless the organization has a certificate of authority under sections 62D.01 to 
8.17 	62D.30.

8.18 	EFFECTIVE DATE. This section is effective the day following final enactment.

8.19 	Sec. 6. Minnesota Statutes 2016, section 62D.05, subdivision 1, is amended to read:
8.20 		Subdivision 1.Authority granted. Any nonprofit corporation or local governmental 
8.21 	unit may, upon obtaining a certificate of authority as required in sections 62D.01 to 62D.30, 
8.22 	operate as a health maintenance organization.

8.23 	EFFECTIVE DATE. This section is effective the day following final enactment.

8.24 	Sec. 7. Minnesota Statutes 2016, section 62D.06, subdivision 1, is amended to read:
8.25 		Subdivision 1.Governing body composition; enrollee advisory body. The governing 
8.26 	body of any health maintenance organization which is a nonprofit corporation may include 
8.27 	enrollees, providers, or other individuals; provided, however, that after a health maintenance 
8.28 	organization which is a nonprofit corporation has been authorized under sections 62D.01
8.29 	to 62D.30 for one year, at least 40 percent of the governing body shall be composed of 
8.30 	enrollees and members elected by the enrollees and members from among the enrollees and 
8.31 	members. For purposes of this section, "member" means a consumer who receives health 
9.1 	care services through a self-insured contract that is administered by the health maintenance 
9.2 	organization or its related third-party administrator. The number of members elected to the 
9.3 	governing body shall not exceed the number of enrollees elected to the governing body. An 
9.4 	enrollee or member elected to the governing board may not be a person:
9.5 	(1) whose occupation involves, or before retirement involved, the administration of 
9.6 	health activities or the provision of health services;
9.7 	(2) who is or was employed by a health care facility as a licensed health professional; 
9.8 	or
9.9 	(3) who has or had a direct substantial financial or managerial interest in the rendering 
9.10 	of a health service, other than the payment of a reasonable expense reimbursement or 
9.11 	compensation as a member of the board of a health maintenance organization.
9.12 	After a health maintenance organization which is a local governmental unit has been 
9.13 	authorized under sections 62D.01 to 62D.30 for one year, an enrollee advisory body shall 
9.14 	be established. The enrollees who make up this advisory body shall be elected by the enrollees 
9.15 	from among the enrollees.

9.16 	EFFECTIVE DATE. This section is effective the day following final enactment.

9.17 	Sec. 8. Minnesota Statutes 2016, section 62D.19, is amended to read:
9.18 	62D.19 UNREASONABLE EXPENSES.
9.19 	No health maintenance organization shall incur or pay for any expense of any nature 
9.20 	which is unreasonably high in relation to the value of the service or goods provided. The 
9.21 	commissioner of health shall implement and enforce this section by rules adopted under 
9.22 	this section.
9.23 	In an effort to achieve the stated purposes of sections 62D.01 to 62D.30; in order to 
9.24 	safeguard the underlying nonprofit status of health maintenance organizations; and to ensure 
9.25 	that the payment of health maintenance organization money to major participating entities 
9.26 	results in a corresponding benefit to the health maintenance organization and its enrollees, 
9.27 	when determining whether an organization has incurred an unreasonable expense in relation 
9.28 	to a major participating entity, due consideration shall be given to, in addition to any other 
9.29 	appropriate factors, whether the officers and trustees of the health maintenance organization 
9.30 	have acted with good faith and in the best interests of the health maintenance organization 
9.31 	in entering into, and performing under, a contract under which the health maintenance 
9.32 	organization has incurred an expense. The commissioner has standing to sue, on behalf of 
10.1 	a health maintenance organization, officers or trustees of the health maintenance organization 
10.2 	who have breached their fiduciary duty in entering into and performing such contracts.

10.3 	EFFECTIVE DATE. This section is effective the day following final enactment.

10.4 	Sec. 9. Minnesota Statutes 2016, section 62E.02, subdivision 3, is amended to read:
10.5 		Subd. 3.Health maintenance organization. "Health maintenance organization" means 
10.6 	a nonprofit corporation licensed and operated as provided in chapter 62D.

10.7 	EFFECTIVE DATE. This section is effective the day following final enactment.

10.8 	Sec. 10. [62H.18] AGRICULTURAL COOPERATIVE HEALTH PLAN.
10.9 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this section.
10.10 	(b) "Agricultural cooperative" means a cooperative organized under chapter 308A or 
10.11 	308B that meets the requirements of subdivision 2.
10.12 	(c) "Broker" means an insurance agent engaged in brokerage business according to 
10.13 	section 60K.49.
10.14 	(d) "Employee Retirement Income Security Act" means the Employee Retirement Income 
10.15 	Security Act of 1974, United States Code, title 29, sections 1001, et seq.
10.16 	(e) "Enrollee" means a natural person covered by a joint self-insurance plan operating 
10.17 	under this section.
10.18 	(f) "Insurance agent" has the meaning given to insurance agent in section 60A.02, 
10.19 	subdivision 7.
10.20 	(g) "Joint self-insurance plan" or "plan" means a plan or any other arrangement established 
10.21 	for the benefit of two or more entities authorized to transact business in the state, in order 
10.22 	to jointly self-insure through a single employee welfare benefit plan funded through a trust, 
10.23 	to provide health, dental, or other benefits as permitted under the Employee Retirement 
10.24 	Income Security Act.
10.25 	(h) "Service plan administrator" means a vendor of risk management services licensed 
10.26 	under section 60A.23.
10.27 	(i) "Trust" means a trust established to accept and hold assets of the joint self-insurance 
10.28 	plan in trust and use and disperse funds in accordance with the terms of the written trust 
10.29 	document and joint self-insurance plan for the sole purposes of providing benefits and 
10.30 	defraying reasonable administrative costs of providing the benefits.
11.1 		Subd. 2.Exemption. A joint self-insurance plan, its service plan administrator, stop loss 
11.2 	carrier, and any broker assisting the agricultural cooperative are exempt from sections 
11.3 	62H.01 to 62H.17, and are governed by the requirements of this section, if the joint 
11.4 	self-insurance plan is administrated through a trust established by an agricultural cooperative 
11.5 	that:
11.6 	(1) has members who (i) actively work in production agriculture in Minnesota and file 
11.7 	either Form 1065 or Schedule F with the member's income tax return; or (ii) provide direct 
11.8 	services to production agriculture in Minnesota;
11.9 	(2) specifies criteria for membership in the agricultural cooperative in their articles of 
11.10 	organization or bylaws, however criteria cannot be based on health status factors of the 
11.11 	individuals to be covered through the joint self-insurance plan; and
11.12 	(3) grants at least 51 percent of the aggregate voting power on matters for which all 
11.13 	members may vote to members who satisfy clause (1) and any additional criteria in the 
11.14 	agricultural cooperative's articles of organization and bylaws.
11.15 		Subd. 3.Plan requirements. A joint self-insurance plan operating under this section 
11.16 	must:
11.17 	(1) offer health coverage to members of the agricultural cooperative that establishes the 
11.18 	plan and their dependents, to employees of members of the agricultural cooperative that 
11.19 	establishes the plan and their dependents, or to employees of the agricultural cooperative 
11.20 	that establishes the plan and their dependents. Health coverage may be offered only to those 
11.21 	individuals who meet certain criteria described in the joint self-insurance plan governing 
11.22 	documents, however the criteria cannot be based on health status factors of the individuals 
11.23 	to be covered through the joint self-insurance plan;
11.24 	(2) include stop-loss coverage with an individual attachment point not lower than $20,000 
11.25 	and an aggregate attachment point not lower than 110 percent of expected claims, issued 
11.26 	by an insurance company licensed in Minnesota;
11.27 	(3) establish a reserve fund, certified by an actuary to be sufficient to cover unpaid claim 
11.28 	liability for incurred but not reported liabilities in the event of plan termination. Certification 
11.29 	from the actuary must include all maximum funding requirements for plan fixed cost 
11.30 	requirements and current claims liability requirements, and must include a calculation of 
11.31 	the reserve levels needed to fund all incurred but not reported liabilities in the event of 
11.32 	member or plan termination. These reserve funds must be held in a trust;
12.1 	(4) be governed by a board elected by agricultural cooperative members that participate 
12.2 	in the plan;
12.3 	(5) contract for services with a service plan administrator; and
12.4 	(6) satisfy the requirements of the Employee Retirement Income Security Act that apply 
12.5 	to employee welfare benefit plans.
12.6 		Subd. 4.Submission of documents to commissioner of commerce. A joint 
12.7 	self-insurance plan operating under this section must submit to the commissioner of 
12.8 	commerce copies of all filings and reports that are submitted to the United States Department 
12.9 	of Labor according to the Employee Retirement Income Security Act. Members participating 
12.10 	in the joint self-insurance plan may designate an agricultural cooperative that establishes 
12.11 	the plan as the entity responsible for satisfying the reporting requirements of the Employee 
12.12 	Retirement Income Security Act and for providing copies of these filings and reports to the 
12.13 	commissioner of commerce.
12.14 		Subd. 5.Participation; termination of participation. If a member chooses to participate 
12.15 	in a joint self-insurance plan under this section, the member must participate in the plan for 
12.16 	at least three consecutive years. If a member terminates participation in the plan before the 
12.17 	end of the three-year period, a financial penalty may be assessed under the plan, not to 
12.18 	exceed the amount contributed by the member to the plan reserves.
12.19 		Subd. 6.Single risk pool. The enrollees of a joint self-insurance plan operating under 
12.20 	this section shall be members of a single risk pool. The plan shall provide benefits as a 
12.21 	single, self-insured plan with the size of the plan based on the total enrollees in the risk 
12.22 	pool.
12.23 		Subd. 7.Promotion, marketing, sale of coverage. (a) Coverage in a joint self-insurance 
12.24 	plan operating under this section may be promoted, marketed, and sold by insurance agents 
12.25 	and brokers to members of the agricultural cooperative sponsoring the plan and their 
12.26 	dependents, employees of members of the agricultural cooperative sponsoring the plan and 
12.27 	their dependents, and employees of the agricultural cooperative sponsoring the plan and 
12.28 	their dependents.
12.29 	(b) Coverage in a joint self-insurance plan operating under this section may be promoted 
12.30 	and marketed by a cooperative organized under chapter 308A or 308B to persons who may 
12.31 	be eligible to participate in the joint self-insurance plan.
12.32 		Subd. 8.Taxation. Joint self-insurance plans are exempt from the taxation imposed 
12.33 	under section 297I.05, subdivision 12.
13.1 		Subd. 9.Compliance with other laws. A joint self-insurance plan operating under this 
13.2 	section:
13.3 	(1) is exempt from providing the mandated health benefits in chapters 62A and 62Q, if 
13.4 	the plan otherwise provides the benefits required under the Employee Retirement Income 
13.5 	Security Act;
13.6 	(2) is exempt from the continuation requirements in sections 62A.146, 62A.16, 62A.17, 
13.7 	62A.20, and 62A.21, if the plan complies with the continuation requirements under the 
13.8 	Employee Retirement Income Security Act; and
13.9 	(3) must comply with all requirements of the Affordable Care Act, as defined in section 
13.10 	62A.011, subdivision 1a, to the extent that they apply to such plans.

13.11 	EFFECTIVE DATE. This section is effective the day following final enactment.

13.12 	Sec. 11. Minnesota Statutes 2016, section 62K.10, is amended by adding a subdivision to 
13.13 	read:
13.14 		Subd. 5a.Appeal of waiver of network adequacy requirements. (a) If a health carrier 
13.15 	receives a waiver under subdivision 5 applicable to a health plan's provider network, a 
13.16 	provider who is in the service area served by the health plan and who is aggrieved by the 
13.17 	issuance of the waiver may appeal the commissioner's decision using the contested case 
13.18 	procedures in sections 14.57 to 14.62. A contested case proceeding must be initiated within 
13.19 	60 days after the date on which the commissioner grants a waiver, except that a proceeding 
13.20 	regarding a waiver in effect as of January 1, 2017, must be initiated within 60 days after 
13.21 	the effective date of this subdivision. The commissioner must provide timely notice of an 
13.22 	appeal under this subdivision to the health carrier that received the waiver that is subject to 
13.23 	the appeal. After considering the appeal, the administrative law judge must either uphold 
13.24 	or nullify the waiver of network adequacy requirements. The prevailing party in the contested 
13.25 	case proceeding may seek an award of expenses and fees from the nonprevailing party by 
13.26 	applying to the administrative law judge using the procedure in section 15.472, paragraph 
13.27 	(b). The administrative law judge shall award fees and expenses to the prevailing party if 
13.28 	the administrative law judge finds that the position of the nonprevailing party was not 
13.29 	substantially justified. For purposes of this paragraph, "substantially justified" has the 
13.30 	meaning given in section 15.471, subdivision 8.
13.31 	(b) The decision of the administrative law judge constitutes the final decision regarding 
13.32 	the waiver. A party aggrieved by the administrative law judge's decision may seek judicial 
13.33 	review of the decision as provided in chapter 14. If the waiver is nullified and no judicial 
14.1 	review is sought, the health carrier must comply with the network adequacy requirements 
14.2 	in subdivisions 2, 3, and 4, within 30 days after the deadline for seeking judicial review in 
14.3 	section 14.63.
14.4 	(c) This subdivision expires December 31, 2018.

14.5 	EFFECTIVE DATE. This section is effective the day following final enactment, and 
14.6 	applies to network adequacy waivers in effect on or after January 1, 2017.

14.7 	Sec. 12. Minnesota Statutes 2016, section 62L.12, subdivision 2, is amended to read:
14.8 		Subd. 2.Exceptions. (a) A health carrier may renew individual conversion policies to 
14.9 	eligible employees otherwise eligible for conversion coverage under section 62D.104 as a 
14.10 	result of leaving a health maintenance organization's service area.
14.11 	(b) A health carrier may renew individual conversion policies to eligible employees 
14.12 	otherwise eligible for conversion coverage as a result of the expiration of any continuation 
14.13 	of group coverage required under sections 62A.146, 62A.17, 62A.21, 62C.142, 62D.101, 
14.14 	and 62D.105.
14.15 	(c) A health carrier may renew conversion policies to eligible employees.
14.16 	(d) A health carrier may sell, issue, or renew individual continuation policies to eligible 
14.17 	employees as required.
14.18 	(e) A health carrier may sell, issue, or renew individual health plans if the coverage is 
14.19 	appropriate due to an unexpired preexisting condition limitation or exclusion applicable to 
14.20 	the person under the employer's group health plan or due to the person's need for health 
14.21 	care services not covered under the employer's group health plan.
14.22 	(f) A health carrier may sell, issue, or renew an individual health plan, if the individual 
14.23 	has elected to buy the individual health plan not as part of a general plan to substitute 
14.24 	individual health plans for a group health plan nor as a result of any violation of subdivision 
14.25 	3 or 4.
14.26 	(g) A health carrier may sell, issue, or renew an individual health plan if coverage 
14.27 	provided by the employer is determined to be unaffordable under the provisions of the 
14.28 	Affordable Care Act as defined in section 62A.011, subdivision 1a.
14.29 	(h) Nothing in this subdivision relieves a health carrier of any obligation to provide 
14.30 	continuation or conversion coverage otherwise required under federal or state law.
14.31 	(i) Nothing in this chapter restricts the offer, sale, issuance, or renewal of coverage issued 
14.32 	as a supplement to Medicare under sections 62A.3099 to 62A.44, or policies or contracts 
15.1 	that supplement Medicare issued by health maintenance organizations, or those contracts 
15.2 	governed by sections 1833, 1851 to 1859, 1860D, or 1876 of the federal Social Security 
15.3 	Act, United States Code, title 42, section 1395 et seq., as amended.
15.4 	(j) Nothing in this chapter restricts the offer, sale, issuance, or renewal of individual 
15.5 	health plans necessary to comply with a court order.
15.6 	(k) A health carrier may offer, issue, sell, or renew an individual health plan to persons 
15.7 	eligible for an employer group health plan, if the individual health plan is a high deductible 
15.8 	health plan for use in connection with an existing health savings account, in compliance 
15.9 	with the Internal Revenue Code, section 223. In that situation, the same or a different health 
15.10 	carrier may offer, issue, sell, or renew a group health plan to cover the other eligible 
15.11 	employees in the group.
15.12 	(l) A health carrier may offer, sell, issue, or renew an individual health plan to one or 
15.13 	more employees of a small employer if the individual health plan is marketed directly to 
15.14 	all employees of the small employer and the small employer does not contribute directly or 
15.15 	indirectly to the premiums or facilitate the administration of the individual health plan. The 
15.16 	requirement to market an individual health plan to all employees does not require the health 
15.17 	carrier to offer or issue an individual health plan to any employee. For purposes of this 
15.18 	paragraph, an employer is not contributing to the premiums or facilitating the administration 
15.19 	of the individual health plan if the employer does not contribute to the premium and merely 
15.20 	collects the premiums from an employee's wages or salary through payroll deductions and 
15.21 	submits payment for the premiums of one or more employees in a lump sum to the health 
15.22 	carrier. Except for coverage under section 62A.65, subdivision 5, paragraph (b), at the 
15.23 	request of an employee, the health carrier may bill the employer for the premiums payable 
15.24 	by the employee, provided that the employer is not liable for payment except from payroll 
15.25 	deductions for that purpose. If an employer is submitting payments under this paragraph, 
15.26 	the health carrier shall provide a cancellation notice directly to the primary insured at least 
15.27 	ten days prior to termination of coverage for nonpayment of premium. Individual coverage 
15.28 	under this paragraph may be offered only if the small employer has not provided coverage 
15.29 	under section 62L.03 to the employees within the past 12 months.
15.30 	(m) A health carrier may offer, sell, issue, or renew an individual health plan to one or 
15.31 	more employees of a small employer if the small employer, eligible employee, and individual 
15.32 	health plan are in compliance with the 21st Century Cures Act, Public Law 114-255, section 
15.33 	18001.

15.34 	EFFECTIVE DATE. This section is effective the day following final enactment.

16.1 	Sec. 13. [62Q.556] UNAUTHORIZED PROVIDER SERVICES.
16.2 		Subdivision 1.Unauthorized provider services. (a) Except as provided in paragraph 
16.3 	(c), unauthorized provider services occur when an enrollee receives services:
16.4 	(1) from a nonparticipating provider at a participating hospital or ambulatory surgical 
16.5 	center, when the services are rendered:
16.6 	(i) due to the unavailability of a participating provider;
16.7 	(ii) by a nonparticipating provider without the enrollee's knowledge; or
16.8 	(iii) due to the need for unforeseen services arising at the time the services are being 
16.9 	rendered; or
16.10 	(2) from a participating provider that sends a specimen taken from the enrollee in the 
16.11 	participating provider's practice setting to a nonparticipating laboratory, pathologist, or other 
16.12 	medical testing facility.
16.13 	(b) Unauthorized provider services do not include emergency services as defined in 
16.14 	section 62Q.55, subdivision 3.
16.15 	(c) The services described in paragraph (a), clause (2), are not unauthorized provider 
16.16 	services if the enrollee gives advance written consent to the provider acknowledging that 
16.17 	the use of a provider, or the services to be rendered, may result in costs not covered by the 
16.18 	health plan.
16.19 		Subd. 2.Prohibition. (a) An enrollee's financial responsibility for the unauthorized 
16.20 	provider services shall be the same cost-sharing requirements, including co-payments, 
16.21 	deductibles, coinsurance, coverage restrictions, and coverage limitations, as those applicable 
16.22 	to services received by the enrollee from a participating provider. A health plan company 
16.23 	must apply any enrollee cost sharing requirements, including co-payments, deductibles, and 
16.24 	coinsurance, for unauthorized provider services to the enrollee's annual out-of-pocket limit 
16.25 	to the same extent payments to a participating provider would be applied.
16.26 	(b) A health plan company must attempt to negotiate the reimbursement, less any 
16.27 	applicable enrollee cost sharing under paragraph (a), for the unauthorized provider services 
16.28 	with the nonparticipating provider. If a health plan company's and nonparticipating provider's 
16.29 	attempts to negotiate reimbursement for the health care services do not result in a resolution, 
16.30 	the health plan company or provider may elect to refer the matter for binding arbitration, 
16.31 	chosen in accordance with paragraph (c). A nondisclosure agreement must be executed by 
16.32 	both parties prior to engaging an arbitrator in accordance with this section. The cost of 
16.33 	arbitration must be shared equally between the parties.
17.1 	(c) The commissioner of health, in consultation with the commissioner of the Bureau 
17.2 	of Mediation Services, must develop a list of professionals qualified in arbitration, for the 
17.3 	purpose of resolving disputes between a health plan company and nonparticipating provider 
17.4 	arising from the payment for unauthorized provider services. The commissioner of health 
17.5 	shall publish the list on the department of health's Web Site, and update the list as appropriate.
17.6 	(d) The arbitrator must consider relevant information, including the health plan company's 
17.7 	payments to other nonparticipating providers for the same services, the circumstances and 
17.8 	complexity of the particular case, and the usual and customary rate for the service based on 
17.9 	information available in a database in a national, independent, not-for-profit corporation, 
17.10 	and similar fees received by the provider for the same services from other health plans in 
17.11 	which the provider is nonparticipating, in reaching a decision.

17.12 	EFFECTIVE DATE. This section is effective 90 days following final enactment and 
17.13 	applies to provider services provided on or after that date.

17.14 	Sec. 14. Minnesota Statutes 2016, section 297I.05, subdivision 12, is amended to read:
17.15 		Subd. 12.Other entities. (a) A tax is imposed equal to two percent of:
17.16 	(1) gross premiums less return premiums written for risks resident or located in Minnesota 
17.17 	by a risk retention group;
17.18 	(2) gross premiums less return premiums received by an attorney in fact acting in 
17.19 	accordance with chapter 71A;
17.20 	(3) gross premiums less return premiums received pursuant to assigned risk policies and 
17.21 	contracts of coverage under chapter 79; and
17.22 	(4) the direct funded premium received by the reinsurance association under section 
17.23 	79.34 from self-insurers approved under section 176.181 and political subdivisions that 
17.24 	self-insure.
17.25 	(b) A tax is imposed on a joint self-insurance plan operating under chapter 60F. The rate 
17.26 	of tax is equal to two percent of the total amount of claims paid during the fund year, with 
17.27 	no deduction for claims wholly or partially reimbursed through stop-loss insurance.
17.28 	(c) A tax is imposed on a joint self-insurance plan operating under chapter 62H, except 
17.29 	as provided in section 62H.18, subdivision 8. The rate of tax is equal to two percent of the 
17.30 	total amount of claims paid during the fund's fiscal year, with no deduction for claims wholly 
17.31 	or partially reimbursed through stop-loss insurance.
18.1 	(d) A tax is imposed equal to the tax imposed under section 297I.05, subdivision 5, on 
18.2 	the gross premiums less return premiums on all coverages received by an accountable 
18.3 	provider network or agents of an accountable provider network in Minnesota, in cash or 
18.4 	otherwise, during the year.

18.5 	EFFECTIVE DATE. This section is effective the day following final enactment.

18.6 	Sec. 15. TRANSITION OF CARE COVERAGE FOR CALENDAR YEAR 2017; 
18.7 	INVOLUNTARY TERMINATION OF COVERAGE.
 18.8 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
18.9 	the meanings given.
18.10 	(b) "Enrollee" has the meaning given in Minnesota Statutes, section 62Q.01, subdivision 
18.11 	2b.
18.12 	(c) "Health plan" has the meaning given in Minnesota Statutes, section 62Q.01, 
18.13 	subdivision 3.
18.14 	(d) "Health plan company" has the meaning given in Minnesota Statutes, section 62Q.01, 
18.15 	subdivision 4.
18.16 	(e) "Individual market" has the meaning given in Minnesota Statutes, section 62A.011, 
18.17 	subdivision 5.
18.18 	(f) "Involuntary termination of coverage" means the termination of a health plan due to 
18.19 	a health plan company's refusal to renew the health plan in the individual market because 
18.20 	the health plan company elects to cease offering individual market health plans in all or 
18.21 	some geographic rating areas of the state.
18.22 		Subd. 2.Application. This section applies to an enrollee who is subject to a change in 
18.23 	health plans in the individual market due to an involuntary termination of coverage from a 
18.24 	health plan in the individual market after October 31, 2016, and before January 1, 2017, 
18.25 	and who enrolls in a new health plan in the individual market for all or a portion of calendar 
18.26 	year 2017 that goes into effect after December 31, 2016, and before March 2, 2017.
18.27 		Subd. 3.Change in health plans; transition of care coverage. (a) If an enrollee satisfies 
18.28 	the criteria in subdivision 2, the enrollee's new health plan company must provide, upon 
18.29 	request of the enrollee or the enrollee's health care provider, authorization to receive services 
18.30 	that are otherwise covered under the terms of the enrollee's calendar year 2017 health plan 
18.31 	from a provider who provided care on an in-network basis to the enrollee during calendar 
18.32 	year 2016 but who is out of network in the enrollee's calendar year 2017 health plan:
19.1 	(1) for up to 120 days if the enrollee has, within 45 days before an involuntary termination 
19.2 	of coverage, received a diagnosis of, or is engaged in a current course of treatment for, one 
19.3 	or more of the following conditions:
19.4 	(i) an acute condition;
19.5 	(ii) a life-threatening mental or physical illness;
19.6 	(iii) pregnancy beyond the first trimester of pregnancy;
19.7 	(iv) a physical or mental disability defined as an inability to engage in one or more major 
19.8 	life activities, provided the disability has lasted or can be expected to last for at least one 
19.9 	year or can be expected to result in death; or
19.10 	(v) a disabling or chronic condition that is in an acute phase; or
19.11 	(2) for the rest of the enrollee's life if a physician certifies that the enrollee has an expected 
19.12 	lifetime of 180 days or less.
19.13 	(b) For all requests for authorization under this subdivision, the health plan company 
19.14 	must grant the request for authorization unless the enrollee does not meet the criteria in 
19.15 	paragraph (a) or subdivision 2.
19.16 		Subd. 4.Limitations. (a) Subdivision 3 applies only if the enrollee's health care provider 
19.17 	agrees to:
19.18 	(1) accept as payment in full the lesser of:
19.19 	(i) the health plan company's reimbursement rate for in-network providers for the same 
19.20 	or similar service; or
19.21 	(ii) the provider's regular fee for that service;
19.22 	(2) request authorization for services in the form and manner specified by the enrollee's 
19.23 	new health plan company; and
19.24 	(3) provide the enrollee's new health plan company with all necessary medical information 
19.25 	related to the care provided to the enrollee.
19.26 	(b) Nothing in this section requires a health plan company to provide coverage for a 
19.27 	health care service or treatment that is not covered under the enrollee's health plan.
19.28 		Subd. 5.Request for authorization. The enrollee's health plan company may require 
19.29 	medical records and other supporting documentation to be submitted with a request for 
19.30 	authorization under subdivision 3 to the extent that the records and other documentation 
19.31 	are relevant to a determination regarding the existence of a condition under subdivision 3, 
20.1 	paragraph (a). If authorization is denied, the health plan company must explain the criteria 
20.2 	used to make its decision on the request for authorization and must explain the enrollee's 
20.3 	right to appeal the decision. If an enrollee chooses to appeal a denial, the enrollee must 
20.4 	appeal the denial within five business days of the date on which the enrollee receives the 
20.5 	denial. If authorization is granted, the health plan company must provide the enrollee, within 
20.6 	five business days of granting the authorization, with an explanation of how transition of 
20.7 	care will be provided.
20.8 		Subd. 6.Reimbursement. (a) The commissioner of management and budget must 
20.9 	reimburse the enrollee's new health plan company for the cost of claims that the health plan 
20.10 	company certifies as eligible for reimbursement under this subdivision.  The cost eligible 
20.11 	for reimbursement under this subdivision is the difference between the in-network level of 
20.12 	benefits under the enrollee's health plan and the out-of-network level of benefits under the 
20.13 	enrollee's health plan. The health plan company must seek reimbursement for the cost of 
20.14 	claims from the commissioner in a form and manner mutually agreed upon by the 
20.15 	commissioner and the affected health plan companies. Total state reimbursements to health 
20.16 	plan companies under this subdivision are subject to the limits of the available appropriation 
20.17 	and the commissioner may prorate equally across all claims paid as necessary. In the event 
20.18 	that funding for reimbursements to health plan companies is not sufficient to fully reimburse 
20.19 	health plan companies for the costs of claims for reimbursement for services authorized 
20.20 	under this section, health plan companies must continue to cover services authorized under 
20.21 	this section.
20.22 	(b) For any service provided under this section, the enrollee shall not owe the provider 
20.23 	more than the cost-sharing amount the enrollee would be required to pay if the services 
20.24 	were performed by an in-network provider under the enrollee's new health plan.

20.25 	EFFECTIVE DATE. This section is effective for health plans issued after December 
20.26 	31, 2016, and before March 2, 2017, and that are in effect for all or a portion of calendar 
20.27 	year 2017. This section expires June 30, 2018.

20.28 	Sec. 16. COSTS RELATED TO IMPLEMENTATION OF THIS ACT.
 20.29 	A state agency that incurs administrative costs to implement any provision in this act 
20.30 	and does not receive an appropriation for administrative costs in this act, must implement 
20.31 	the act within the limits of existing appropriations.

20.32 	EFFECTIVE DATE. This section is effective the day following final enactment.

21.1 	Sec. 17. INSURANCE MARKET OPTIONS.
 21.2 	The commissioner of commerce shall report by March 1, 2017, to the standing committees 
21.3 	of the legislature having jurisdiction over insurance and health on the past and future use 
21.4 	of Minnesota Statutes 2005, section 62L.056, and Minnesota Statutes, section 62Q.188, 
21.5 	including:
21.6 	(1) rate and form filings received, approved, or withdrawn;
21.7 	(2) barriers to current utilization, including federal and state laws; and
21.8 	(3) recommendations for allowing or increasing the offering of health plans compliant 
21.9 	with Minnesota Statutes, section 62Q.188.

21.10 	EFFECTIVE DATE. This section is effective the day following final enactment.

21.11 	Sec. 18. APPROPRIATION.
 21.12 	$15,000,000 in fiscal year 2017 is appropriated from the general fund to the commissioner 
21.13 	of management and budget to reimburse health plan companies for costs of claims eligible 
21.14 	for reimbursement for coverage of transition of care services. Of this amount, $272,400 is 
21.15 	available to the commissioner for purposes of administering reimbursement for coverage 
21.16 	of transition of care services and administering the premium subsidy program in article 1. 
21.17 	This is a onetime appropriation and is available until June 30, 2018. Any funds remaining 
21.18 	from this appropriation after June 30, 2018, shall be transferred on July 1, 2018, from the 
21.19 	general fund to the budget reserve account in Minnesota Statutes, section 16A.152, 
21.20 	subdivision 1a.

21.21 	EFFECTIVE DATE. This section is effective the day following final enactment.

21.22 	Sec. 19.  REPEALER.
 21.23 	(a) Minnesota Statutes 2016, section 62D.12, subdivision 9, is repealed effective the 
21.24 	day following final enactment.
21.25 	(b) Laws 2007, chapter 147, article 12, section 14, as amended by Laws 2010, chapter 
21.26 	344, section 4, Laws 2010, chapter 384, section 99, Laws 2013, chapter 135, article 1, 
21.27 	section 9; Laws 2010, chapter 384, section 99; and Laws 2013, chapter 135, article 1, section 
21.28 	9, are repealed effective the day following final enactment.

APPENDIX 

Repealed Minnesota Statutes: S0001-3 

62D.12 PROHIBITED PRACTICES.Subd. 9.Net earnings. 
All net earnings of the health maintenance organization shall be devoted to the nonprofit purposes of the health maintenance organization in providing comprehensive health care. No health maintenance organization shall provide for the payment, whether directly or indirectly, of any part of its net earnings, to any person as a dividend or rebate; provided, however, that health maintenance organizations may make payments to providers or other persons based upon the efficient provision of services or as incentives to provide quality care. The commissioner of health shall, pursuant to sections 62D.01 to 62D.30, revoke the certificate of authority of any health maintenance organization in violation of this subdivision. 

Repealed Minnesota Session Laws: S0001-3 

Laws 2007, chapter 147, article 12, section 14, as amended by Laws 2010, chapter 344, section 4; as amended by Laws 2010, chapter 384, section 99; as amended by Laws 2013, chapter 135, article 1, section 9; as amended by Laws 2017, chapter 2, article 2, section 19
Sec. 4. Laws 2007, chapter 147, article 12, section 14, is amended to read:Sec. 14. AGRICULTURAL COOPERATIVE HEALTH PLAN FOR FARMERS. Subdivision 1.Pilot project requirements. 
Notwithstanding contrary provisions of Minnesota Statutes, chapter 62H, the following apply to a joint self-insurance pilot project administered by a trust sponsored by one or more agricultural cooperatives organized under Minnesota Statutes, chapter 308A or 308B, or under a federal charter for the purpose of offering health coverage to members of the cooperatives and their families, provided the project satisfies the other requirements of Minnesota Statutes, chapter 62H: 

(1) Minnesota Statutes, section 62H.02, paragraph (b), does not apply; 

(2) the notice period required under Minnesota Statutes, section 62H.02, paragraph (e), is 90 days; 

(3) a joint self-insurance plan may elect to treat the sale of a health plan to or for an employer that has only one eligible employee who has not waived coverage as the sale of an individual health plan as allowed under Minnesota Statutes, section 62L.02, subdivision 26; 

(4) Minnesota Statutes, section 297I.05, subdivision 12, paragraph (c), applies; and 

(5) the trust must pay the assessment for the Minnesota Comprehensive Health Association as provided under Minnesota Statutes, section 62E.11. 

Subd. 2.Evaluation and renewal. 
The pilot project authorized under this section is for a period of four years from the date of initial enrollment. The commissioner of commerce shall grant an extension of four additional years if the trust provides evidence that it remains in compliance with the requirements of this section and other applicable laws and rules. If the commissioner determines that the operation of the trust has not improved access, expanded health plan choices, or improved the affordability of health coverage for farm families, or that it has significantly damaged access, choice, or affordability for other consumers not enrolled in the trust, the commissioner shall provide at least 180 days' advance written notice to the trust and to the chairs of the senate and house finance and policy committees with jurisdiction over health and insurance of the commissioner's intention not to renew the pilot project at the expiration of a four-year period. 

Subd. 3.Use of surplus lines. 
Plans created under this section may use surplus lines carriers to fulfill its obligations under chapter 62H. 

Laws 2010, chapter 384, section 99 by Laws 2017, chapter 2, article 2, section 19
Sec. 99. Laws 2007, chapter 147, article 12, section 14, is amended to read:$$$$$$$$1$.01$$$$$$$$.$$$$$$$$2$$$$$$$$$1$.01$$$$$$$$.$$$$$$$$3$
EFFECTIVE DATE. 
This section is effective the day following final enactment. 

Laws 2013, chapter 135, article 1, section 9 by Laws 2017, chapter 2, article 2, section 19
Sec. 9. Laws 2007, chapter 147, article 12, section 14, as amended by Laws 2010, chapter 344, section 4, subdivision 1, and Laws 2010, chapter 384, section 99, is amended to read:
EFFECTIVE DATE. 
This section is effective the day following final enactment.