1.1                          A bill for an act
  1.2             relating to health; establishing a health insurance 
  1.3             purchasing pool account and a nursing facility health 
  1.4             insurance board; requiring the board to design a 
  1.5             self-insured health insurance purchasing pool for 
  1.6             nursing facilities; requiring a report to the 
  1.7             legislature; proposing coding for new law in Minnesota 
  1.8             Statutes, chapter 256B. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  [256B.436] [ASSESSMENT FOR HEALTH INSURANCE.] 
  1.11     Subdivision 1.  [NURSING FACILITY ASSESSMENT.] (a) 
  1.12  Effective July 1, 2000, each nursing facility with rates set 
  1.13  under section 256B.431, 256B.434, or 256B.435 shall pay to the 
  1.14  commissioner, on a monthly basis, an assessment of ten cents per 
  1.15  staff hour worked each month, according to the payment procedure 
  1.16  established by the commissioner. 
  1.17     (b) Nursing facilities are exempt from the assessment in 
  1.18  paragraph (a) if they: 
  1.19     (1) provide health coverage that is actuarially equivalent 
  1.20  to a qualified number two plan under section 62E.06; 
  1.21     (2) pay for at least 80 percent of the cost of 
  1.22  employee-only coverage; and 
  1.23     (3) have a participation rate of at least 70 percent of 
  1.24  employees. 
  1.25     Subd. 2.  [HEALTH INSURANCE PURCHASING POOL ACCOUNT.] The 
  1.26  commissioner shall establish a health insurance purchasing pool 
  1.27  account in the general fund, and shall deposit all payments 
  2.1   received under this section into that account.  If legislation 
  2.2   that expressly establishes a nursing facility health insurance 
  2.3   pool in response to the report to the legislature required by 
  2.4   section 256B.437 is enacted by June 30, 2001, the commissioner 
  2.5   shall transfer money from the account to the nursing facility 
  2.6   health insurance board, to be used to fund pool reserves and to 
  2.7   provide premium subsidies for employees. 
  2.8      Subd. 3.  [RATE INCREASE.] Effective July 1, 2000, the 
  2.9   commissioner shall increase rates of all nursing facilities 
  2.10  reimbursed under section 256B.431, 256B.434, or 256B.435 by an 
  2.11  amount equal to the assessment paid under subdivision 1.  For 
  2.12  facilities meeting the criteria in subdivision 1, paragraph (b), 
  2.13  the commissioner shall increase reimbursement rates by an amount 
  2.14  equal to the assessment that would have been paid had the 
  2.15  facilities not been exempt. 
  2.16     Subd. 4.  [SUNSET.] This section sunsets and money in the 
  2.17  health insurance purchasing pool account reverts to the general 
  2.18  fund, effective July 1, 2001, if legislation that expressly 
  2.19  establishes a nursing facility health insurance pool in response 
  2.20  to the report to the legislature required by section 256B.437 is 
  2.21  not enacted by June 30, 2001. 
  2.22     Sec. 2.  [256B.437] [NURSING FACILITY HEALTH INSURANCE 
  2.23  BOARD.] 
  2.24     Subdivision 1.  [ESTABLISHMENT.] The commissioner of human 
  2.25  services shall appoint a ten-member nursing facility health 
  2.26  insurance board, consisting of five representatives of nursing 
  2.27  facility operators and five representatives of nursing facility 
  2.28  employees.  The commissioner shall provide technical support to 
  2.29  the board.  The board is governed by section 15.0575. 
  2.30     Subd. 2.  [DUTIES.] The board shall: 
  2.31     (1) design a self-insured health insurance purchasing pool 
  2.32  that meets the criteria in subdivision 3; 
  2.33     (2) develop a timeline and plan for implementation of the 
  2.34  purchasing pool; and 
  2.35     (3) upon legislative approval, implement and administer the 
  2.36  purchasing pool. 
  3.1      Subd. 3.  [DESIGN OF PURCHASING POOL.] The design for the 
  3.2   health insurance purchasing pool must: 
  3.3      (1) describe the health insurance coverage to be provided, 
  3.4   the estimated cost of coverage to employees, and any 
  3.5   cost-sharing requirements; 
  3.6      (2) specify eligibility requirements for employees and 
  3.7   nursing facilities; 
  3.8      (3) specify the minimum levels of employer contributions 
  3.9   towards the cost of health coverage; 
  3.10     (4) require nursing facilities purchasing coverage through 
  3.11  the pool to remain members of the pool for a specified minimum 
  3.12  time period; 
  3.13     (5) provide subsidies for the employee share of health 
  3.14  insurance premiums; and 
  3.15     (6) specify how the funds provided through the assessment 
  3.16  established under section 256B.436 will be allocated between a 
  3.17  reserve fund and premium subsidies for employees. 
  3.18     Subd. 4.  [REPORT TO LEGISLATURE.] The board shall present 
  3.19  a report to the legislature by December 15, 2000, on the design, 
  3.20  implementation, and administration of a health insurance 
  3.21  purchasing pool for nursing facility employees. 
  3.22     Subd. 5.  [SUNSET.] This section sunsets July 1, 2001, if 
  3.23  legislation that expressly establishes a nursing facility health 
  3.24  insurance pool in response to the report to the legislature 
  3.25  required by subdivision 4 is not enacted by June 30, 2001.