2006 Minnesota Statutes

62L.18 CEDING OF RISK.
    Subdivision 1. Prospective ceding. For health benefit plans issued on or after July 1, 1993,
all health carriers participating in the association may prospectively reinsure an employee or
dependent within a small employer group and entire employer groups of seven or fewer eligible
employees. A health carrier must determine whether to reinsure an employee or dependent or
entire group within 60 days of the commencement of the coverage of the small employer and
must notify the association during that time period.
    Subd. 2. Eligibility for reinsurance. (a) A health carrier may not reinsure existing small
employer business through the association. A health carrier may reinsure an employee or
dependent who previously had coverage from MCHA who is now eligible for coverage through
the small employer group at the time of enrollment as defined in section 62L.03, subdivision 6. A
health carrier may not reinsure individuals who have existing individual health care coverage
with that health carrier upon replacement of the individual coverage with group coverage as
provided in section 62L.04, subdivision 1.
(b) A health carrier may cede to the association the risk of any newly eligible employees
or continue to reinsure small employer business for employers who, at the time of renewal of
coverage by the same health carrier prior to July 1, 1995, have more than 29 current employees
but fewer than 49 current employees. This paragraph is effective retroactively for coverage
renewed on or after July 1, 1994.
    Subd. 3. Reinsurance termination. A health carrier may terminate reinsurance through the
association for an employee or dependent or entire group on the anniversary date of coverage for
the small employer. If the health carrier terminates the reinsurance, the health carrier may not
subsequently reinsure the individual or entire group.
    Subd. 4. Continuing carrier responsibility. A health carrier transferring risk to the
association is completely responsible for administering its health benefit plans. A health carrier
shall apply its case management and claim processing techniques consistently between reinsured
and nonreinsured business. Small employers, eligible employees, and dependents shall not be
notified that the health carrier has reinsured their coverage through the association.
History: 1992 c 549 art 2 s 18; 1995 c 234 art 7 s 23