1.1                          A bill for an act 
  1.2             relating to health; regulating health plan coverages 
  1.3             for handicapped children; amending Minnesota Statutes 
  1.4             2002, sections 62A.14; 62A.301; 62C.14, subdivision 5. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2002, section 62A.14, is 
  1.7   amended to read: 
  1.8      62A.14 [HANDICAPPED CHILDREN.] 
  1.9      Subdivision 1.  [INDIVIDUAL FAMILY POLICIES.] An individual 
  1.10  hospital or medical expense insurance policy delivered or issued 
  1.11  for delivery in this state more than 120 days after May 16, 
  1.12  1969, or an individual health maintenance contract delivered or 
  1.13  issued for delivery in this state after August 1, 1984, which 
  1.14  provides that coverage of a dependent child shall terminate upon 
  1.15  attainment of the limiting age for dependent children specified 
  1.16  in the policy or contract shall also provide in substance that 
  1.17  attainment of such limiting age shall not operate to terminate 
  1.18  the coverage of such child while the child is and continues to 
  1.19  be both (a) incapable of self-sustaining employment by reason of 
  1.20  mental retardation, mental illness or disorder, or physical 
  1.21  handicap and (b) chiefly dependent upon the policyholder for 
  1.22  support and maintenance, provided proof of such incapacity and 
  1.23  dependency is furnished to the insurer or health maintenance 
  1.24  organization by the policyholder or enrollee within 31 days of 
  1.25  the child's attainment of the limiting age and subsequently as 
  2.1   may be required by the insurer or organization but not more 
  2.2   frequently than annually after the two-year period following the 
  2.3   child's attainment of the limiting age.  Any notice regarding 
  2.4   termination of coverage due to attainment of the limiting age 
  2.5   must include all the information in this section.  
  2.6      Subd. 2.  [GROUP POLICIES.] A group hospital or medical 
  2.7   expense insurance policy delivered or issued for delivery in 
  2.8   this state more than 120 days after May 16, 1969, or a group 
  2.9   health maintenance contract delivered or issued for delivery in 
  2.10  this state after August 1, 1984, which provides that coverage of 
  2.11  a dependent child of an employee or other member of the covered 
  2.12  group shall terminate upon attainment of the limiting age for 
  2.13  dependent children specified in the policy or contract shall 
  2.14  also provide in substance that attainment of such limiting age 
  2.15  shall not operate to terminate the coverage of such child while 
  2.16  the child is and continues to be both (a) incapable of 
  2.17  self-sustaining employment by reason of mental retardation, 
  2.18  mental illness or disorder, or physical handicap and (b) chiefly 
  2.19  dependent upon the employee or member for support and 
  2.20  maintenance, provided proof of such incapacity and dependency is 
  2.21  furnished to the insurer or organization by the employee or 
  2.22  member within 31 days of the child's attainment of the limiting 
  2.23  age and subsequently as may be required by the insurer or 
  2.24  organization but not more frequently than annually after the 
  2.25  two-year period following the child's attainment of the limiting 
  2.26  age.  Any notice regarding termination of coverage due to 
  2.27  attainment of the limiting age must include information about 
  2.28  this provision. 
  2.29     Sec. 2.  Minnesota Statutes 2002, section 62A.301, is 
  2.30  amended to read: 
  2.31     62A.301 [COVERAGE OF FULL-TIME STUDENTS.] 
  2.32     If an insurer provides individual or group accident and 
  2.33  health coverage for dependents after what otherwise would be the 
  2.34  limiting age based on full-time student status the insurer must 
  2.35  include in its definition of full-time student, any student who 
  2.36  by reason of illness, injury, or physical or mental disability 
  3.1   as documented by a physician is unable to carry what the 
  3.2   educational institution considers a full-time course load so 
  3.3   long as the student's course load is at least 60 percent of what 
  3.4   otherwise is considered by the institution to be a full-time 
  3.5   course load.  Any notice regarding termination of coverage due 
  3.6   to attainment of the limiting age must include information about 
  3.7   this provision. 
  3.8      For purposes of this section, "insurer" means an insurer 
  3.9   providing accident and health insurance regulated under this 
  3.10  chapter, a nonprofit health service plan corporation regulated 
  3.11  under chapter 62C, a health maintenance organization regulated 
  3.12  under chapter 62D, or a fraternal benefit society regulated 
  3.13  under chapter 64B. 
  3.14     Sec. 3.  Minnesota Statutes 2002, section 62C.14, 
  3.15  subdivision 5, is amended to read: 
  3.16     Subd. 5.  [HANDICAPPED DEPENDENTS.] A subscriber's 
  3.17  individual contract or any group contract delivered or issued 
  3.18  for delivery in this state and providing that coverage of a 
  3.19  dependent child of the subscriber or a dependent child of a 
  3.20  covered group member shall terminate upon attainment of a 
  3.21  specified age shall also provide in substance that attainment of 
  3.22  that age shall not terminate coverage while the child is (a) 
  3.23  incapable of self-sustaining employment by reason of mental 
  3.24  retardation, mental illness or disorder, or physical handicap, 
  3.25  and (b) chiefly dependent upon the subscriber or employee for 
  3.26  support and maintenance, provided proof of incapacity and 
  3.27  dependency is furnished by the subscriber within 31 days of 
  3.28  attainment of the age, and subsequently as required by the 
  3.29  corporation, but not more frequently than annually after a two 
  3.30  year period following attainment of the age.  Any notice 
  3.31  regarding termination of coverage due to attainment of the 
  3.32  limiting age must include information about this provision. 
  3.33     Sec. 4.  [EFFECTIVE DATE; APPLICATION.] 
  3.34     Sections 1 to 3 are effective August 1, 2003, and apply to 
  3.35  all notices regarding termination of coverage due to attainment 
  3.36  of the limiting age sent on or after that date.