1.1                          A bill for an act 
  1.2             relating to insurance; regulating health coverage for 
  1.3             certain persons. 
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [MCHA ENROLLMENT CLOSURE; ALTERNATIVE COVERAGE 
  1.6   MECHANISM.] 
  1.7      Subdivision 1.  [CLOSURE REQUIRED.] The commissioner of 
  1.8   commerce shall close enrollment in the Minnesota Comprehensive 
  1.9   Health Association by July 1, 2004.  After July 1, 2004, the 
  1.10  commissioner shall not allow a cap on premiums for enrollees in 
  1.11  the Minnesota Comprehensive Health Association.  
  1.12     This subdivision supercedes any inconsistent provision of 
  1.13  law. 
  1.14     Subd. 2.  [ALTERNATIVE COVERAGE PROPOSAL.] By January 1, 
  1.15  2003, the commissioner shall propose an alternative health 
  1.16  coverage mechanism for state residents who cannot obtain 
  1.17  policies from a health plan company.  The commissioner's 
  1.18  recommendations may include a program that allows health plan 
  1.19  companies to bid for either individual or aggregate stop loss 
  1.20  funds to be provided by the state at an attachment point that is 
  1.21  not less than equal to 150 percent of the premium.  The 
  1.22  commissioner shall set criteria for access to these funds.  This 
  1.23  criteria must include:  
  1.24     (1) defining what type of individual is eligible because of 
  2.1   past or existing health conditions and inability to otherwise 
  2.2   obtain health coverage; and 
  2.3      (2) the health plan company's design for managing the 
  2.4   health conditions of its enrollees who meet this criteria.  
  2.5   The commissioner shall equally consider financial viability and 
  2.6   the health product design, giving special consideration to 
  2.7   health plan companies who design customized products for persons 
  2.8   with specific conditions. 
  2.9      The proposals and recommendations required by this 
  2.10  subdivision must be made to the standing committees of the 
  2.11  legislature with jurisdiction over insurance and health care 
  2.12  issues.