1.1 	A bill for an act
1.2 	relating to health care; removing the insurance barriers to MinnesotaCare 
1.3 	eligibility for children;amending Minnesota Statutes 2006, section 256L.07, 
1.4 	subdivisions 2, 3.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2006, section 256L.07, subdivision 2, is amended to read:
1.7 		Subd. 2.Must not have access to employer-subsidized coverage. (a) To be 
1.8 	eligible, ~~a family or individual~~ an adult must not have access to subsidized health coverage 
1.9 	through an employer and must not have had access to employer-subsidized coverage 
1.10 	through a current employer for 18 months prior to application or reapplication. ~~A family~~ 
1.11 	~~or individual~~ An adult whose employer-subsidized coverage is lost due to an employer 
1.12 	terminating health care coverage as an employee benefit during the previous 18 months 
1.13 	is not eligible.
1.14 	(b) This subdivision does not apply to ~~a family or individual~~ an adult who was 
1.15 	enrolled in MinnesotaCare within six months or less of reapplication and who no longer 
1.16 	has employer-subsidized coverage due to the employer terminating health care coverage 
1.17 	as an employee benefit.
1.18 	(c) For purposes of this requirement, subsidized health coverage means health 
1.19 	coverage for which the employer pays at least 50 percent of the cost of coverage for 
1.20 	the employee or dependent, or a higher percentage as specified by the commissioner. 
1.21 	~~Children are eligible for employer-subsidized coverage through either parent, including~~ 
1.22 	~~the noncustodial parent.~~ The commissioner must treat employer contributions to Internal 
1.23 	Revenue Code Section 125 plans and any other employer benefits intended to pay 
2.1 	health care costs as qualified employer subsidies toward the cost of health coverage for 
2.2 	employees for purposes of this subdivision.
2.3 	(d) This subdivision does not apply to children.

2.4 	Sec. 2. Minnesota Statutes 2006, section 256L.07, subdivision 3, is amended to read:
2.5 		Subd. 3.Other health coverage. (a) ~~Families and individuals~~Adults enrolled in the 
2.6 	MinnesotaCare program must have no health coverage while enrolled or for at least four 
2.7 	months prior to application and renewal. ~~Children enrolled in the original children's health~~ 
2.8 	~~plan and children in families with income equal to or less than 150 percent of the federal~~ 
2.9 	~~poverty guidelines, who have other health insurance, are eligible if the coverage:~~
2.10 	~~(1) lacks two or more of the following:~~
2.11 	~~(i) basic hospital insurance;~~
2.12 	~~(ii) medical-surgical insurance;~~
2.13 	~~(iii) prescription drug coverage;~~
2.14 	~~(iv) dental coverage; or~~
2.15 	~~(v) vision coverage;~~
2.16 	~~(2) requires a deductible of $100 or more per person per year; or~~
2.17 	~~(3) lacks coverage because the child has exceeded the maximum coverage for a~~ 
2.18 	~~particular diagnosis or the policy excludes a particular diagnosis.~~
2.19 	The commissioner may change this eligibility criterion for sliding scale premiums in 
2.20 	order to remain within the limits of available appropriations. ~~The requirement of no health~~ 
2.21 	~~coverage~~ This paragraph does not apply to ~~newborns~~ children.
2.22 	(b) Medical assistance, general assistance medical care, and the Civilian Health and 
2.23 	Medical Program of the Uniformed Service, CHAMPUS, or other coverage provided under 
2.24 	United States Code, title 10, subtitle A, part II, chapter 55, are not considered insurance or 
2.25 	health coverage for purposes of the four-month requirement described in this subdivision.
2.26 	(c) For purposes of this subdivision, an applicant or enrollee who is entitled to 
2.27 	Medicare Part A or enrolled in Medicare Part B coverage under title XVIII of the Social 
2.28 	Security Act, United States Code, title 42, sections 1395c to 1395w-152, is considered to 
2.29 	have health coverage. An applicant or enrollee who is entitled to premium-free Medicare 
2.30 	Part A may not refuse to apply for or enroll in Medicare coverage to establish eligibility 
2.31 	for MinnesotaCare.
2.32 	(d) Applicants who were recipients of medical assistance or general assistance 
2.33 	medical care within one month of application must meet the provisions of this subdivision 
2.34 	and subdivision 2.
3.1 	(e) Cost-effective health insurance that was paid for by medical assistance is not 
3.2 	considered health coverage for purposes of the four-month requirement under this 
3.3 	section, except if the insurance continued after medical assistance no longer considered it 
3.4 	cost-effective or after medical assistance closed.