1.1                          A bill for an act 
  1.2             relating to insurance; regulating the Minnesota 
  1.3             comprehensive health association; modifying the 
  1.4             definition of contributing member; permitting 
  1.5             extensions of writing carrier contract period; 
  1.6             providing subsidies to reduce assessments borne by 
  1.7             individuals and small businesses; appropriating money; 
  1.8             amending Minnesota Statutes 2000, sections 62E.02, 
  1.9             subdivision 23; 62E.10, subdivision 1; and 62E.13, 
  1.10            subdivision 3. 
  1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.12     Section 1.  Minnesota Statutes 2000, section 62E.02, 
  1.13  subdivision 23, is amended to read: 
  1.14     Subd. 23.  [CONTRIBUTING MEMBER.] "Contributing member" 
  1.15  means those companies regulated under chapter 62A and offering, 
  1.16  selling, issuing, or renewing policies or contracts of accident 
  1.17  and health insurance; health maintenance organizations regulated 
  1.18  under chapter 62D, including those owned or operated by entities 
  1.19  defined under section 62D.02, subdivision 11; nonprofit health 
  1.20  service plan corporations regulated under chapter 62C; community 
  1.21  integrated service networks regulated under chapter 62N; 
  1.22  fraternal benefit societies regulated under chapter 64B; the 
  1.23  state of Minnesota with respect to coverage offered under 
  1.24  sections 43A.22 to 43A.31 and under the Minnesota employees 
  1.25  insurance program established in section 43A.317, effective July 
  1.26  1, 1993; and joint self-insurance plans regulated under chapter 
  1.27  62H; and political subdivisions with respect to self-insurance 
  1.28  plans they sponsor under section 471.617, subdivisions 1 and 2.  
  2.1   For the purposes of determining liability of contributing 
  2.2   members pursuant to section 62E.11, payments received from or on 
  2.3   behalf of Minnesota residents for coverage by a health 
  2.4   maintenance organization or community integrated service 
  2.5   network, including, but not limited to, payments received from 
  2.6   the federal Health Care Finance Administration with respect to 
  2.7   the health care prepayment plan program under Code of Federal 
  2.8   Regulations, chapter 42, parts 417.800 to 417.840, shall be 
  2.9   considered to be accident and health insurance premiums. 
  2.10     Sec. 2.  Minnesota Statutes 2000, section 62E.10, 
  2.11  subdivision 1, is amended to read: 
  2.12     Subdivision 1.  [CREATION; TAX EXEMPTION.] There is 
  2.13  established a comprehensive health association to promote the 
  2.14  public health and welfare of the state of Minnesota with 
  2.15  membership consisting of all insurers; self-insurers; 
  2.16  fraternals; joint self-insurance plans regulated under chapter 
  2.17  62H; political subdivisions with respect to self-insurance plans 
  2.18  they operate under section 471.617; the state of Minnesota with 
  2.19  respect to coverage offered under sections 43A.22 to 43A.31 and 
  2.20  under the Minnesota employees insurance program established in 
  2.21  section 43A.317, effective July 1, 1993; health maintenance 
  2.22  organizations regulated under chapter 62D, including those owned 
  2.23  or operated by entities defined under section 62D.02, 
  2.24  subdivision 11; and community integrated service networks, 
  2.25  licensed or authorized to do business in this state.  The 
  2.26  comprehensive health association is exempt from the taxes 
  2.27  imposed under chapter 297I, and any other laws of this state and 
  2.28  all property owned by the association is exempt from taxation. 
  2.29     Sec. 3.  Minnesota Statutes 2000, section 62E.13, 
  2.30  subdivision 3, is amended to read: 
  2.31     Subd. 3.  [DUTIES OF WRITING CARRIER.] The writing carrier 
  2.32  shall perform all administrative and claims payment functions 
  2.33  required by this section.  The writing carrier shall provide 
  2.34  these services for a period of three years, unless a request to 
  2.35  terminate is approved by the commissioner.  The three-year 
  2.36  contract period may be renewed for a second three-year period 
  3.1   without a competitive bidding process upon the approval of the 
  3.2   commissioner of commerce and the consent of the association and 
  3.3   the writing carrier.  The renewal may include amendments agreed 
  3.4   to by the association and the writing carrier and approved by 
  3.5   the commissioner.  At any time, either the writing carrier or 
  3.6   the association may submit a request to terminate to the 
  3.7   commissioner.  The commissioner shall approve or deny a request 
  3.8   to terminate within 90 days of its receipt.  A failure to make a 
  3.9   final decision on a request to terminate within the specified 
  3.10  period shall be deemed to be an approval.  Six months prior to 
  3.11  the expiration of each three-year period, the association shall 
  3.12  invite submissions of policy forms from members of the 
  3.13  association, including the writing carrier.  The association 
  3.14  shall follow the provisions of subdivision 2 in selecting a 
  3.15  writing carrier for the subsequent three-year period. 
  3.16     Sec. 4.  [APPROPRIATIONS.] 
  3.17     Subdivision 1.  [DEPARTMENT OF COMMERCE.] $15,000,000 in 
  3.18  fiscal year 2002 and $15,000,000 in fiscal year 2003 is 
  3.19  appropriated from the health care access fund to the 
  3.20  commissioner of commerce. 
  3.21     Subd. 2.  [MINNESOTA COMPREHENSIVE HEALTH ASSOCIATION 
  3.22  OFFSET.] Of the appropriation in subdivision 1, $14,750,000 in 
  3.23  fiscal year 2002 and $15,000,000 in fiscal year 2003 is for a 
  3.24  grant to the Minnesota comprehensive health association and 
  3.25  shall be made available on January 1 of each fiscal year to be 
  3.26  used to offset the annual assessments for calendar years 2002 
  3.27  and 2003 that are required to be paid by each contributing 
  3.28  member in accordance with Minnesota Statutes, section 62E.11.  
  3.29  This appropriation shall not become part of the base for the 
  3.30  2004-2005 biennium. 
  3.31     Subd. 3.  [STUDY OF INDIVIDUAL INSURANCE MARKET.] Of the 
  3.32  appropriation in subdivision 1, $250,000 in fiscal year 2002 is 
  3.33  for an actuarial and policy study by the department of commerce 
  3.34  of the feasibility and cost impact of establishing a private 
  3.35  insurance access pool for the individual health insurance market.
  3.36     Sec. 5.  [EFFECTIVE DATE.] 
  4.1      Sections 1 to 3 are effective the day following final 
  4.2   enactment.