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62E.19 PAYMENTS FOR PREEXISTING CONDITIONS.
    Subdivision 1. Employer liability. An employer is liable to the association for the costs
of any preexisting conditions of the employer's former employees or their dependents during
the first six months of coverage under the state comprehensive health insurance plan under the
following conditions:
(1)(i) the employer has terminated or laid off employees and is required to meet the notice
requirements under section 116L.976, subdivision 2;
(ii) the employer has failed to provide, arrange for, or make available continuation health
insurance coverage required to be provided under federal or state law to employees or their
dependents; and
(iii) the employer's former employees or their dependents enroll in the state comprehensive
health insurance plan with a waiver of the preexisting condition limitation under section 62E.14,
subdivision 4a
or 5; or
(2)(i) the employer has terminated or allowed the employer's plan of health insurance
coverage to lapse within 90 days prior to the date of termination or layoff of an employee; and
(ii) the employer's former employees or their dependents enroll in the state comprehensive
health insurance plan with a waiver of the preexisting condition limitation under section 62E.14,
subdivision 4a
or 5.
The employer shall pay a special assessment to the association for the costs of the preexisting
conditions. The special assessment may be assessed before the association makes the annual
determination of each contributing member's liability as required under this chapter. The
association may enforce the obligation to pay the special assessment by action, as a claim in an
insolvency proceeding, or by any other method not prohibited by law.
If the association makes the special assessment permitted by this subdivision, the association
may also make any assessment of contributing members otherwise permitted by law, without
regard to the special assessment permitted by this subdivision. Contributing members must pay
the assessment, subject to refund or adjustment in the event of receipt by the association of any
portion of the special assessment.
    Subd. 2. Exemption. Subdivision 1 does not apply to a termination of or failure to implement
an employee health benefit plan which results from or occurs during a strike or lockout, nor does
it apply to employee health benefit plans separately provided by an employee organization or
bargaining agent, regardless of any financial contribution to the plan by the employer.
History: 1990 c 523 s 7; 1991 c 199 art 1 s 11; 1994 c 485 s 35; 2004 c 206 s 52