1.1                          A bill for an act 
  1.2             relating to state employees; requiring health coverage 
  1.3             for state employees to permit unrestricted choice of 
  1.4             health care provider; amending Minnesota Statutes 
  1.5             2002, section 43A.23, subdivision 1.  
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 43A.23, 
  1.8   subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [GENERAL.] (a) The commissioner is 
  1.10  authorized to request bids from carriers or to negotiate with 
  1.11  carriers and to enter into contracts with carriers which in the 
  1.12  judgment of the commissioner are best qualified to underwrite 
  1.13  and service the benefit plans.  Contracts entered into with 
  1.14  carriers are not subject to the requirements of sections 16C.16 
  1.15  to 16C.19.  The commissioner may negotiate premium rates and 
  1.16  coverage provisions with all carriers licensed under chapters 
  1.17  62A, 62C, and 62D.  The commissioner may also negotiate 
  1.18  reasonable restrictions to be applied to all carriers under 
  1.19  chapters 62A, 62C, and 62D.  Contracts to underwrite the benefit 
  1.20  plans must be bid or negotiated separately from contracts to 
  1.21  service the benefit plans, which may be awarded only on the 
  1.22  basis of competitive bids.  The commissioner shall consider the 
  1.23  cost of the plans, conversion options relating to the contracts, 
  1.24  service capabilities, character, financial position, and 
  1.25  reputation of the carriers, and any other factors which the 
  2.1   commissioner deems appropriate.  Each benefit contract must be 
  2.2   for a uniform term of at least one year, but may be made 
  2.3   automatically renewable from term to term in the absence of 
  2.4   notice of termination by either party.  The commissioner shall, 
  2.5   to the extent feasible, make hospital and medical benefits 
  2.6   available from at least one carrier licensed to do business 
  2.7   pursuant to each of chapters 62A, 62C, and 62D.  The 
  2.8   commissioner need not provide health maintenance organization 
  2.9   services to an employee who resides in an area which is not 
  2.10  served by a licensed health maintenance organization.  The 
  2.11  commissioner may refuse to allow a health maintenance 
  2.12  organization to continue as a carrier.  The commissioner may 
  2.13  elect not to offer all three types of carriers if there are no 
  2.14  bids or no acceptable bids by that type of carrier or if the 
  2.15  offering of additional carriers would result in substantial 
  2.16  additional administrative costs.  A carrier licensed under 
  2.17  chapter 62A is exempt from the taxes imposed by chapter 297I on 
  2.18  premiums paid to it by the state. 
  2.19     (b) All self-insured hospital and medical service products 
  2.20  must comply with coverage mandates, data reporting, and consumer 
  2.21  protection requirements applicable to the licensed carrier 
  2.22  administering the product, had the product been insured, 
  2.23  including chapters 62J, 62M, and 62Q.  Any self-insured products 
  2.24  that limit coverage to a network of providers or provide 
  2.25  different levels of coverage between network and nonnetwork 
  2.26  providers shall comply with section 62D.123 and geographic 
  2.27  access standards for health maintenance organizations adopted by 
  2.28  the commissioner of health in rule under chapter 62D. 
  2.29     (c) Whether coverage under this section is insured through 
  2.30  a carrier or self-insured, each plan of coverage must permit the 
  2.31  enrollee to receive covered health care services from the 
  2.32  enrollee's choice of any licensed or registered health care 
  2.33  provider for any primary or specialty care within that 
  2.34  provider's legally permitted scope of practice.  The enrollee's 
  2.35  choice of provider must not be subject to referral requirements, 
  2.36  network restrictions, higher out-of-pocket costs for the 
  3.1   enrollee, or any other restriction on the enrollee's choice of 
  3.2   provider. 
  3.3      Sec. 2.  [EFFECTIVE DATE.] 
  3.4      Section 1 is effective beginning with the 2004 benefit year.