1.1                          A bill for an act 
  1.2             relating to human services; establishing medical 
  1.3             savings accounts for medical assistance recipients.  
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [PILOT PROJECT FOR MEDICAL SAVINGS ACCOUNTS FOR 
  1.6   MEDICAL ASSISTANCE RECIPIENTS.] 
  1.7      Subdivision 1.  [CONTRACT FOR HEALTH INSURANCE.] (a) The 
  1.8   commissioner may contract on an annual basis with at least two 
  1.9   insurers that issue health insurance policies to provide each 
  1.10  medical assistance recipient with health insurance.  The 
  1.11  commissioner may contract for health insurance to be provided on 
  1.12  a group basis.  
  1.13     (b) Contracts entered into under paragraph (a) shall 
  1.14  provide that the commissioner pay copayments and deductibles 
  1.15  directly to the provider providing health care services to 
  1.16  recipients from the accounts established under this section.  
  1.17     Subd. 2.  [MEDICAL SAVINGS ACCOUNT.] (a) The commissioner 
  1.18  shall establish a medical savings account for all recipients of 
  1.19  medical assistance.  The account shall be established as follows:
  1.20     (1) individual accounts shall be established for each 
  1.21  recipient and credit $2,000 to the account; or 
  1.22     (2) family accounts shall be established and credit $3,000 
  1.23  to the account for each set of recipients who meet any of the 
  1.24  following criteria:  
  2.1      (i) recipients who are spouses and both are covered under 
  2.2   medical assistance; 
  2.3      (ii) at least one of the recipients is a child who meets 
  2.4   the eligibility requirement under medical assistance; 
  2.5      (iii) parents of a child covered under medical assistance 
  2.6   are also covered recipients under medical assistance; or 
  2.7      (iv) at least one of the recipients is a parent or legal 
  2.8   guardian of all of the recipients described in clause (ii), and 
  2.9   if both parents of all recipients described in clause (ii) are 
  2.10  recipients, then both parents are covered by the family account. 
  2.11     (b) One adult participant in a family account must be 
  2.12  designated as responsible for the account.  If more than one 
  2.13  adult is covered by a family account, the adult recipients shall 
  2.14  designate one of the covered adult recipients as the responsible 
  2.15  recipient.  A parent or the guardian of the minor recipients in 
  2.16  a family account shall be responsible for the account.  The 
  2.17  individual designated as responsible for a family account has 
  2.18  the responsibilities and rights with respect to the account that 
  2.19  an individual recipient has with respect to an individual 
  2.20  account. 
  2.21     Subd. 3.  [USE OF FUNDS.] Money in the medical savings 
  2.22  account shall be used to pay:  
  2.23     (1) deductibles required under the health insurance plan; 
  2.24     (2) copayments required under the health insurance plan; or 
  2.25     (3) other medical costs not covered by the health insurance 
  2.26  plan and authorized by the recipient.  
  2.27     Subd. 4.  [CONTRACT REQUIREMENT.] (a) Contracts entered 
  2.28  into under this section must provide that the total of 
  2.29  deductibles and copayments that may be charged may not exceed 
  2.30  the following amount during the one-year period beginning on the 
  2.31  anniversary date of the establishment of the account:  
  2.32     (1) $2,000 for an individual account; or 
  2.33     (2) $3,000 for a family account.  
  2.34     (b) After the anniversary date of the establishment of the 
  2.35  account, the commissioner shall: 
  2.36     (1) give a voucher to the recipient in an account equal to 
  3.1   the balance remaining in the account after payment of all 
  3.2   copayments and deductibles required to be paid for health care 
  3.3   services rendered before the anniversary date.  A voucher given 
  3.4   under this subdivision may be used for any of the following 
  3.5   purposes:  
  3.6      (i) education for one or more of the recipients covered by 
  3.7   the account; 
  3.8      (ii) job training services for one or more recipients 
  3.9   covered by the account; 
  3.10     (iii) child care services for one or more recipients 
  3.11  covered by the account; or 
  3.12     (iv) other expenses described in rules adopted by the 
  3.13  commissioner; and 
  3.14     (2) credit to the account the following: 
  3.15     (i) $2,000 if the account is an individual account; or 
  3.16     (ii) $3,000 if the account is a family account. 
  3.17     Subd. 5.  [ACCOUNT BALANCE.] A recipient may choose to 
  3.18  leave in the account the balance remaining in the account after 
  3.19  the anniversary date of the account. 
  3.20     Subd. 6.  [ACCOUNT USE.] If the department enters into 
  3.21  contracts under subdivision 1, the commissioner may not pay the 
  3.22  following for a recipient, other than from the account: 
  3.23     (1) copayments; 
  3.24     (2) deductibles; and 
  3.25     (3) other health care costs not covered by the contract. 
  3.26     Subd. 7.  [CLOSING OF ACCOUNTS.] The commissioner may close 
  3.27  an account on the anniversary date if an individual who was a 
  3.28  recipient is not eligible to be a recipient. 
  3.29     Subd. 8.  [INVESTMENT OF FUNDS.] The state may pool the 
  3.30  money in all accounts established under this section for 
  3.31  investment purposes.  Interest from investments of money in the 
  3.32  accounts shall be deposited in the state general fund.