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    Subdivision 1. General. The commissioner is authorized to request bids and to enter into
contracts with parties which in the judgment of the commissioner are best qualified to provide
service to the benefit plans. Contracts entered into are not subject to the requirements of sections
16C.16 to 16C.19. The commissioner may negotiate premium rates and coverage. Contracts to
underwrite the benefit plans must be bid or negotiated separately from contracts to service the
benefit plans, which may be awarded only on the basis of competitive bids. The commissioner
shall consider the cost of the plans, conversion options relating to the contracts, service
capabilities, character, financial position, and reputation of the carriers, and any other factors
which the commissioner deems appropriate. Each benefit contract must be for a uniform term of
at least one year, but may be made automatically renewable from term to term in the absence of
notice of termination by either party. A carrier licensed under chapter 62A is exempt from the
taxes imposed by chapter 297I on premiums paid to it by the state.
All self-insured hospital and medical service products must comply with coverage
mandates, data reporting, and consumer protection requirements applicable to the licensed carrier
administering the product, had the product been insured, including chapters 62J, 62M, and 62Q.
Any self-insured products that limit coverage to a network of providers or provide different levels
of coverage between network and nonnetwork providers shall comply with section 62D.123 and
geographic access standards for health maintenance organizations adopted by the commissioner
of health in rule under chapter 62D.
    Subd. 2. Contract to contain statement of benefits. (a) Each contract under sections
43A.22 to 43A.30 shall contain a detailed statement of benefits offered and shall include any
maximums, limitations, exclusions, and other definitions of benefits the commissioner deems
necessary or desirable. Each hospital and medical benefits contract shall provide benefits at least
equal to those required by section 62E.06, subdivision 2.
(b) All summaries of benefits describing the hospital and medical service benefits offered
to state employees must comply with laws and rules for content and clarity applicable to the
licensed carrier administering the product. Referral procedures must be clearly described. The
commissioners of commerce and health, as appropriate, shall review the summaries of benefits,
whether written or electronic, and advise the commissioner of employee relations on any changes
needed to ensure compliance.
    Subd. 3. Contract with insurance carriers. The commissioner of employee relations may
contract with carriers authorized to provide coverage under the state employees group insurance
plan to extend coverage to eligible employees who incur medical expenses due to a personal
injury which results from their state employment which is compensable under chapter 176.
History: 1981 c 210 s 23; 1983 c 290 s 1; 1983 c 301 s 101; 1984 c 544 s 81; 1984 c 642
s 2; 1988 c 667 s 12,13; 1990 c 571 s 28; 1991 c 199 art 2 s 1; 1998 c 386 art 2 s 20; 1999 c
250 art 1 s 73,74; 2000 c 394 art 2 s 1; 2005 c 156 art 3 s 1

Official Publication of the State of Minnesota
Revisor of Statutes