2007 Minnesota Statutes

62D.181 INSOLVENCY; MCHA ALTERNATIVE COVERAGE.
    Subdivision 1. Definition. "Association" means the Minnesota Comprehensive Health
Association created in section 62E.10.
    Subd. 2. Eligible individuals. An individual is eligible for alternative coverage under this
section if:
(1) the individual had individual health coverage through a health maintenance organization
or community integrated service network, the coverage is no longer available due to the
insolvency of the health maintenance organization or community integrated service network, and
the individual has not obtained alternative coverage; or
(2) the individual had group health coverage through a health maintenance organization or
community integrated service network, the coverage is no longer available due to the insolvency
of the health maintenance organization or community integrated service network, and the
individual has not obtained alternative coverage.
    Subd. 3. Application and issuance. If a health maintenance organization or community
integrated service network will be liquidated, individuals eligible for alternative coverage under
subdivision 2 may apply to the association to obtain alternative coverage. Upon receiving an
application and evidence that the applicant was enrolled in the health maintenance organization
or community integrated service network at the time of an order for liquidation, the association
shall issue policies to eligible individuals, without the limitation on preexisting conditions
described in section 62E.14, subdivision 3.
    Subd. 4. Coverage. Alternative coverage issued under this section must be at least a number
two qualified plan, as described in section 62E.06, subdivision 2, or for individuals over age 65, a
basic Medicare supplement plan, as described in section 62A.316.
    Subd. 5. Premium. The premium for alternative coverage issued under this section must not
exceed 80 percent of the premium for the comparable coverage offered by the association.
    Subd. 6. Duration. The duration of alternative coverage issued under this section is:
(1) for individuals eligible under subdivision 2, clause (1), 90 days; and
(2) for individuals eligible under subdivision 2, clause (2), 90 days or the length of time
remaining in the group contract with the insolvent health maintenance organization or community
integrated service network, whichever is greater.
    Subd. 7. Replacement coverage; limitations. The association is not obligated to offer
replacement coverage under this chapter or conversion coverage under section 62E.16 at the end
of the periods specified in subdivision 6. Any continuation obligation arising under this chapter or
chapter 62A will cease at the end of the periods specified in subdivision 6.
    Subd. 8. Claims expenses exceeding premiums. Claims expenses resulting from the
operation of this section which exceed premiums received shall be borne by contributing members
of the association in accordance with section 62E.11, subdivision 5.
    Subd. 9. Coordination of policies. If an insolvent health maintenance organization or
community integrated service network has insolvency insurance coverage at the time of an order
for liquidation, the association may coordinate the benefits of the policy issued under this section
with those of the insolvency insurance policy available to the enrollees. The premium level
for the combined association policy and the insolvency insurance policy may not exceed those
described in subdivision 5.
History: 1988 c 612 s 24; 1989 c 258 s 11; 1995 c 234 art 1 s 6-9; 1997 c 225 art 2 s 62