1.1                          A bill for an act
  1.2             relating to insurance; terminating the Minnesota 
  1.3             employees insurance program; specifying transition 
  1.4             provisions; appropriating money; amending Minnesota 
  1.5             Statutes 1996, sections 62E.02, subdivision 23; 
  1.6             62E.10, subdivision 1; and 62L.02, subdivision 24; 
  1.7             repealing Minnesota Statutes 1996, section 43A.317. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1996, section 62E.02, 
  1.10  subdivision 23, is amended to read: 
  1.11     Subd. 23.  [CONTRIBUTING MEMBER.] "Contributing member" 
  1.12  means those companies regulated under chapter 62A and offering, 
  1.13  selling, issuing, or renewing policies or contracts of accident 
  1.14  and health insurance; health maintenance organizations regulated 
  1.15  under chapter 62D; nonprofit health service plan corporations 
  1.16  regulated under chapter 62C; integrated service networks and 
  1.17  community integrated service networks regulated under chapter 
  1.18  62N; fraternal benefit societies regulated under chapter 64B; 
  1.19  ~~the Minnesota employees insurance program established in section~~ 
  1.20  ~~43A.317, effective July 1, 1993;~~ and joint self-insurance plans 
  1.21  regulated under chapter 62H.  For the purposes of determining 
  1.22  liability of contributing members pursuant to section 62E.11 
  1.23  payments received from or on behalf of Minnesota residents for 
  1.24  coverage by a health maintenance organization, integrated 
  1.25  service network, or community integrated service network shall 
  1.26  be considered to be accident and health insurance premiums. 
  2.1      Sec. 2.  Minnesota Statutes 1996, section 62E.10, 
  2.2   subdivision 1, is amended to read: 
  2.3      Subdivision 1.  [CREATION; TAX EXEMPTION.] There is 
  2.4   established a comprehensive health association to promote the 
  2.5   public health and welfare of the state of Minnesota with 
  2.6   membership consisting of all insurers; self-insurers; 
  2.7   fraternals; joint self-insurance plans regulated under chapter 
  2.8   62H; ~~the Minnesota employees insurance program established in~~ 
  2.9   ~~section 43A.317, effective July 1, 1993;~~ health maintenance 
  2.10  organizations; integrated service networks; and community 
  2.11  integrated service networks licensed or authorized to do 
  2.12  business in this state.  The comprehensive health association 
  2.13  shall be exempt from taxation under the laws of this state and 
  2.14  all property owned by the association shall be exempt from 
  2.15  taxation. 
  2.16     Sec. 3.  Minnesota Statutes 1996, section 62L.02, 
  2.17  subdivision 24, is amended to read: 
  2.18     Subd. 24.  [QUALIFYING COVERAGE.] "Qualifying coverage" 
  2.19  means health benefits or health coverage provided under: 
  2.20     (1) a health plan, as defined in this section; 
  2.21     (2) Medicare; 
  2.22     (3) medical assistance under chapter 256B; 
  2.23     (4) general assistance medical care under chapter 256D; 
  2.24     (5) MCHA; 
  2.25     (6) a self-insured health plan; 
  2.26     (7) the MinnesotaCare program established under section 
  2.27  256.9352, when the plan includes inpatient hospital services as 
  2.28  provided in section 256.9353; 
  2.29     (8) a plan provided under section 43A.316~~, 43A.317,~~ or 
  2.30  471.617 or Minnesota Statutes 1996, section 43A.317; 
  2.31     (9) the Civilian Health and Medical Program of the 
  2.32  Uniformed Services (CHAMPUS); 
  2.33     (10) coverage provided by a health care network cooperative 
  2.34  under chapter 62R or by a health provider cooperative under 
  2.35  section 62R.17; or 
  2.36     (11) a plan similar to any of the above plans provided in 
  3.1   this state or in another state as determined by the commissioner.
  3.2      Sec. 4.  [TRANSITION PROVISIONS.] 
  3.3      The commissioner of employee relations shall seek one or 
  3.4   more buyers for the sale of the right to continue to service the 
  3.5   health coverage purchasing needs of employers participating in 
  3.6   the Minnesota employees insurance program governed by Minnesota 
  3.7   Statutes, section 43A.317, which this act repeals.  The 
  3.8   commissioner shall sell this right for the highest price offered 
  3.9   by a buyer qualified to perform the service.  The commissioner 
  3.10  shall take whatever other steps the commissioner deems 
  3.11  appropriate to liquidate and wind up the program.  To the extent 
  3.12  of funds available, the commissioner shall repay to the health 
  3.13  care access account any unpaid balances on funds appropriated to 
  3.14  the program as loans.  The commissioner shall provide to the 
  3.15  legislature, in compliance with Minnesota Statutes 1996, section 
  3.16  3.195, and no later than December 15, 1997, a written report 
  3.17  describing what has been learned as a result of the program. 
  3.18     The commissioner may, if the commissioner considers it 
  3.19  appropriate, allow eligible employers to enroll in the program 
  3.20  for a period of 30 days beginning on the day following final 
  3.21  enactment of this act. 
  3.22     Sec. 5.  [APPROPRIATION.] 
  3.23     $5,000 is appropriated from the health care access account 
  3.24  to the commissioner of employee relations for the report 
  3.25  required in section 4. 
  3.26     Sec. 6.  [REVISOR INSTRUCTION.] 
  3.27     The revisor shall remove references to the Minnesota 
  3.28  employees insurance program established in Minnesota Statutes, 
  3.29  section 43A.317, in Minnesota Statutes, sections 62E.02, 
  3.30  subdivision 23; 62E.10, subdivision 1; and 62L.04, subdivision 
  3.31  24. 
  3.32     Sec. 7.  [REPEALER; THE MINNESOTA EMPLOYEES INSURANCE 
  3.33  PROGRAM.] 
  3.34     Minnesota Statutes 1996, section 43A.317, is repealed. 
  3.35     Sec. 8.  [EFFECTIVE DATES.] 
  3.36     Sections 1 to 3, 6, and 7 are effective January 1, 1998.  
  4.1   Section 4 is effective the day following final enactment.  
  4.2   Section 5 is effective July 1, 1997.