1998 Minnesota Statutes

     43A.23 Contracting authority. 

    Subdivision 1.    General.  The commissioner is 
 authorized to request bids from carriers or to negotiate with 
 carriers and to enter into contracts with carriers which in the 
 judgment of the commissioner are best qualified to underwrite 
 and service the benefit plans.  Contracts entered into with 
 carriers are not subject to the requirements of sections 16C.16 
 to 16C.19.  The commissioner may negotiate premium rates and 
 coverage provisions with all carriers licensed under chapters 
 62A, 62C, and 62D.  The commissioner may also negotiate 
 reasonable restrictions to be applied to all carriers under 
 chapters 62A, 62C, and 62D.  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.  The commissioner shall, 
 to the extent feasible, make hospital and medical benefits 
 available from at least one carrier licensed to do business 
 pursuant to each of chapters 62A, 62C, and 62D.  The 
 commissioner need not provide health maintenance organization 
 services to an employee who resides in an area which is not 
 served by a licensed health maintenance organization.  The 
 commissioner may refuse to allow a health maintenance 
 organization to continue as a carrier.  The commissioner may 
 elect not to offer all three types of carriers if there are no 
 bids or no acceptable bids by that type of carrier or if the 
 offering of additional carriers would result in substantial 
 additional administrative costs.  A carrier licensed under 
 chapter 62A is exempt from the tax imposed by section 60A.15 on 
 premiums paid to it by the state. 

    Subd. 2.    Contract to contain statement of benefits.  
 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.  

    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.  

    HIST: 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