1.1 	A bill for an act
1.2 	relating to health; extending prompt payment requirements to pharmacy benefit 
1.3 	managers and pharmacies;amending Minnesota Statutes 2006, section 62Q.75, 
1.4 	subdivisions 1, 2.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2006, section 62Q.75, subdivision 1, is amended to read:
1.7 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
1.8 	have the meanings given to them.
1.9 	(b) "Clean claim" means a claim that has no defect or impropriety, including any lack 
1.10 	of any required substantiating documentation, including, but not limited to, coordination 
1.11 	of benefits information, or particular circumstance requiring special treatment that 
1.12 	prevents timely payment from being made on a claim under this section. Nothing in this 
1.13 	section alters an enrollee's obligation to disclose information as required by law.
1.14 	(c) "Third-party administrator" means a third-party administrator or other entity 
1.15 	subject to section 60A.23, subdivision 8, and Minnesota Rules, chapter 2767. For 
1.16 	purposes of this section, third-party administrator includes a pharmacy benefit manager.

1.17 	Sec. 2. Minnesota Statutes 2006, section 62Q.75, subdivision 2, is amended to read:
1.18 		Subd. 2.Claims payments. (a) This section applies to clean claims submitted to a 
1.19 	health plan company or third-party administrator for services provided by any:
1.20 	(1) health care provider, as defined in section 62Q.74, but does not includeincluding 
1.21 	a provider licensed under chapter 151;
1.22 	(2) home health care provider, as defined in section 144A.43, subdivision 4; or
1.23 	(3) health care facility.
2.1 	All health plan companies and third-party administrators must pay or deny claims that are 
2.2 	clean claims within 30 calendar days after the date upon which the health plan company or 
2.3 	third-party administrator received the claim.
2.4 	(b) The health plan company or third-party administrator shall, upon request, make 
2.5 	available to the provider information about the status of a claim submitted by the provider 
2.6 	consistent with section 62J.581.
2.7 	(c) If a health plan company or third-party administrator does not pay or deny a 
2.8 	clean claim within the period provided in paragraph (a), the health plan company or 
2.9 	third-party administrator must pay interest on the claim for the period beginning on the 
2.10 	day after the required payment date specified in paragraph (a) and ending on the date on 
2.11 	which the health plan company or third-party administrator makes the payment or denies 
2.12 	the claim. In any payment, the health plan company or third-party administrator must 
2.13 	itemize any interest payment being made separately from other payments being made for 
2.14 	services provided. The health plan company or third-party administrator shall not require 
2.15 	the health care provider to bill the health plan company or third-party administrator for the 
2.16 	interest required under this section before any interest payment is made. Interest payments 
2.17 	must be made to the health care provider no less frequently than quarterly.
2.18 	(d) The rate of interest paid by a health plan company or third-party administrator 
2.19 	under this subdivision shall be 1.5 percent per month or any part of a month.
2.20 	(e) A health plan company or third-party administrator is not required to make 
2.21 	an interest payment on a claim for which payment has been delayed for purposes of 
2.22 	reviewing potentially fraudulent or abusive billing practices.
2.23 	(f) The commissioner may assess a financial administrative penalty against a 
2.24 	health plan company for violation of this subdivision when there is a pattern of abuse 
2.25 	that demonstrates a lack of good faith effort and a systematic failure of the health plan 
2.26 	company to comply with this subdivision.