1.1 	A bill for an act
1.2 	relating to human services; establishing a MinnesotaCare voucher demonstration 
1.3 	project;proposing coding for new law in Minnesota Statutes, chapter 256L.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. [256L.29] MINNESOTACARE VOUCHER DEMONSTRATION 
1.6 	PROJECT.
1.7 		Subdivision 1.Demonstration project goal. As part of a strategy to transition 
1.8 	public health care programs from a defined benefit strategy to a defined contribution 
1.9 	strategy, and to promote increased efficiency, enhanced cost-effectiveness, and improved 
1.10 	outcomes in public health programs, the commissioner of human services shall develop 
1.11 	and implement a voucher demonstration project.
1.12 		Subd. 2.Development and federal approval. (a) The commissioner shall develop 
1.13 	and seek federal approval for a three-year demonstration project to provide health 
1.14 	coverage vouchers on a monthly basis to MinnesotaCare enrollees. Participation in the 
1.15 	demonstration project by MinnesotaCare enrollees is voluntary, and the commissioner 
1.16 	may set a limit on the total number of demonstration project participants.
1.17 	(b) The commissioner shall implement the demonstration project on July 1, 2012, or 
1.18 	upon federal approval, whichever is later.
1.19 		Subd. 3.Sliding scale for voucher payments. The commissioner shall establish 
1.20 	a sliding scale for voucher payments that varies with household income. The sliding 
1.21 	scale must provide a voucher payment to each enrollee that is equivalent to the premium 
1.22 	subsidy the enrollee would otherwise have received under the MinnesotaCare sliding scale 
1.23 	established in section 256L.15. The commissioner shall adjust the voucher payment 
2.1 	each January 1 to reflect any increases in the average subsidy provided under the 
2.2 	MinnesotaCare program.
2.3 		Subd. 4.Use of voucher payments. Vouchers may be used by participants to 
2.4 	purchase health care coverage from a health plan company or may be used as contributions 
2.5 	into a health savings account. The commissioner shall define terms and conditions for the 
2.6 	use of voucher payments. The commissioner shall deposit voucher payments on a monthly 
2.7 	basis directly into the health savings account designated by a voucher recipient.
2.8 		Subd. 5.Report to legislature. The commissioner shall present to the legislature, 
2.9 	by December 15, 2014:
2.10 	(1) an evaluation of the demonstration project, including recommendations on 
2.11 	whether the demonstration project should be continued or expanded;
2.12 	(2) recommendations on whether the use of vouchers for the purchase of private 
2.13 	sector health coverage should be expanded to medical assistance; and
2.14 	(3) recommendations on whether the use of vouchers should be expanded to include 
2.15 	medical assistance coverage of long-term care services.