House Language UES Senate Language S0760-3

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1 96.1 ARTICLE HEALTH CARE ARTICLE HEALTH CARE 96.3 Section 1. [1.06] FREEDOM OF CHOICE IN HEALTH CARE ACT Section 1. [1.06] FREEDOM OF CHOICE IN HEALTH CARE ACT S_u_b_d_i_v_i_s_i_o_n 1_._ Citation. This section shall be known as and may be cited as the 96.5 "Freedom of Choice in Health Care Act." 96.6 S_u_b_d_. 2_._ Definitions. (a) For purposes of this section, the following terms have 96.7 the meanings given them (b) "Health care service" means any service, treatment, or provision of a product for 96.9 the care of a physical or mental disease, illness, injury, defect, or condition, or to otherwise maintain or improve physical or mental health, subject to all laws and rules regulating health service providers and products within the state of Minnesota (c) "Mode of securing" means to purchase directly or on credit or by trade, or to contract for third-party payment by insurance or other legal means as authorized by the state of Minnesota, or to apply for or accept employer-sponsored or government-sponsored health care benefits under such conditions as may legally be required as a condition of such benefits, or any combination of the same (d) "Penalty" means any civil or criminal fine, tax, salary or wage withholding, surcharge, fee, or any other imposed consequence established by law or rule of a government or its subdivision or agency that is used to punish or discourage the exercise of rights protected under this section S_u_b_d_. 3_._ Statement of public policy. (a) The power to require or regulate a person's choice in the mode of securing health care services, or to impose a penalty related to that choice, is not found in the Constitution of the United States of America, and is therefore a power reserved to the people pursuant to the Ninth Amendment, and to the several states pursuant to the Tenth Amendment. The state of Minnesota hereby exercises its sovereign power to declare the public policy of the state of Minnesota regarding the right of all persons residing in the state in choosing the mode of securing health care services (b) It is hereby declared that the public policy of the state of Minnesota, consistent with our constitutionally recognized and inalienable rights of liberty, is that every person within the state of Minnesota is and shall be free to choose or decline to choose any mode of securing health care services without penalty or threat of penalty (c) The policy stated under this section shall not be applied to impair any right of contract related to the provision of health care services to any person or group S_u_b_d_i_v_i_s_i_o_n 1_._ Citation. This section shall be known as and may be cited as the 71.2 "Freedom of Choice in Health Care Act." 71.3 S_u_b_d_. 2_._ Definitions. (a) For purposes of this section, the following terms have 71.4 the meaning given them (b) "Health care service" means any service, treatment, or provision of a product for 71.6 the care of a physical or mental disease, illness, injury, defect, or condition, or to otherwise 71.7 maintain or improve physical or mental health, subject to all laws and rules regulating 71.8 health service providers and products within the state of Minnesota (c) "Mode of securing" means to purchase directly or on credit or by trade, or to contract for third-party payment by insurance or other legal means as authorized by the state of Minnesota, or to apply for or accept employer-sponsored or government-sponsored health care benefits under such conditions as may legally be required as a condition of such benefits, or any combination of the same (d) "Penalty" means any civil or criminal fine, tax, salary or wage withholding, surcharge, fee, or any other imposed consequence established by law or rule of a government or its subdivision or agency that is used to punish or discourage the exercise of rights protected under this section S_u_b_d_. 3_._ Statement of public policy. (a) The power to require or regulate a person's choice in the mode of securing health care services, or to impose a penalty related to that choice, is not found in the Constitution of the United States of America, and is therefore a power reserved to the people pursuant to the Ninth Amendment, and to the several states pursuant to the Tenth Amendment. The state of Minnesota hereby exercises its sovereign power to declare the public policy of the state of Minnesota regarding the right of all persons residing in the state in choosing the mode of securing health care services (b) It is hereby declared that the public policy of the state of Minnesota, consistent with our constitutionally recognized and inalienable rights of liberty, is that every person within the state of Minnesota is and shall be free to choose or decline to choose any mode of securing health care services without penalty or threat of penalty (c) The policy stated under this section shall not be applied to impair any right of contract related to the provision of health care services to any person or group. PAGE R1

2 96.34 S_u_b_d_. 4_._ Enforcement. Upon penalty of suspension or revocation of any applicable license, no public official, employee, officer of the court, or agent of the state of 97.1 Minnesota, or any branch or political subdivision thereof, shall act to impose, collect, 97.2 enforce, or effectuate any penalty in the state of Minnesota that violates the public policy 97.3 set forth in this section S_u_b_d_. 4_._ Enforcement. (a) No public official, employee, or agent of the state of Minnesota or any of its political subdivisions shall act to impose, collect, enforce, or effectuate any penalty in the state of Minnesota that violates the public policy set forth in this section (b) The attorney general shall take any action as is provided in this section or section in the defense or prosecution of rights protected under this section Sec. 2. Minnesota Statutes 2010, section 8.31, subdivision 1, is amended to read: 72.2 Subdivision 1. Investigate offenses against provisions of certain designated 72.3 sections; assist in enforcement. (a) The attorney general shall investigate violations of the 72.4 law of this state respecting unfair, discriminatory, and other unlawful practices in business, 72.5 commerce, or trade, and specifically, but not exclusively, the Nonprofit Corporation Act 72.6 (sections 317A.001 to 317A.909), the Act Against Unfair Discrimination and Competition 72.7 (sections 325D.01 to 325D.07), the Unlawful Trade Practices Act (sections 325D.09 to D.16), the Antitrust Act (sections 325D.49 to 325D.66), section 325F.67 and other 72.9 laws against false or fraudulent advertising, the antidiscrimination acts contained in section 325D.67, the act against monopolization of food products (section 325D.68), the act regulating telephone advertising services (section 325E.39), the Prevention of Consumer Fraud Act (sections 325F.68 to 325F.70), and chapter 53A regulating currency exchanges and assist in the enforcement of those laws as in this section provided (b) The attorney general shall seek injunctive and any other appropriate relief as expeditiously as possible to preserve the rights and property of the residents of Minnesota, and to defend as necessary the state of Minnesota, its officials, employees, and agents in the event that any law or regulation violating the public policy set forth in the Freedom of Choice in Health Care Act in this section is enacted by any government, subdivision, or agency thereof (c) The attorney general shall seek injunctive and any other appropriate relief as expeditiously as possible in the event that any law or regulation violating the public policy set forth in the Freedom of Choice in Health Care Act in this section is enacted without adequate federal funding to the state to ensure affordable health care coverage is available to the residents of Minnesota Sec. 3. Minnesota Statutes 2010, section 8.31, subdivision 3a, is amended to read: PAGE R2

3 97.4 Sec. 2. Minnesota Statutes 2010, section 62E.08, subdivision 1, is amended to read: 97.5 Subdivision 1. Establishment. The association shall establish the following 97.6 maximum premiums to be charged for membership in the comprehensive health insurance 97.7 plan: 97.8 (a) the premium for the number one qualified plan shall range from a minimum of percent to a maximum of 125 percent of the weighted average of rates charged by those insurers and health maintenance organizations with individuals enrolled in: (1) $1,000 annual deductible individual plans of insurance in force in Minnesota; (2) individual health maintenance organization contracts of coverage with a $1, annual deductible which are in force in Minnesota; and (3) other plans of coverage similar to plans offered by the association based on generally accepted actuarial principles; (b) the premium for the number two qualified plan shall range from a minimum of percent to a maximum of 125 percent of the weighted average of rates charged by those insurers and health maintenance organizations with individuals enrolled in: (1) $500 annual deductible individual plans of insurance in force in Minnesota; (2) individual health maintenance organization contracts of coverage with a $ annual deductible which are in force in Minnesota; and (3) other plans of coverage similar to plans offered by the association based on generally accepted actuarial principles; (c) the premiums for the plans with a $2,000, $5,000, or $10,000 annual deductible shall range from a minimum of 101 percent to a maximum of 125 percent of the weighted average of rates charged by those insurers and health maintenance organizations with individuals enrolled in: (1) $2,000, $5,000, or $10,000 annual deductible individual plans, respectively, in force in Minnesota; and Subd. 3a. Private remedies. In addition to the remedies otherwise provided by law, any person injured by a violation of any of the laws referred to in subdivision 1 or a violation of the public policy in section 1.06 may bring a civil action and recover damages, together with costs and disbursements, including costs of investigation and reasonable attorney's fees, and receive other equitable relief as determined by the court. The court may, as appropriate, enter a consent judgment or decree without the finding of illegality In any action brought by the attorney general pursuant to this section, the court may award any of the remedies allowable under this subdivision. An action under this subdivision for any violation of section 1.06 is in the public interest. PAGE R3

4 97.30 (2) individual health maintenance organization contracts of coverage with a $2,000, $5,000, or $10,000 annual deductible, respectively, which are in force in Minnesota; or (3) other plans of coverage similar to plans offered by the association based on generally accepted actuarial principles; (d) the premium for each type of Medicare supplement plan required to be offered by the association pursuant to section 62E.12 shall range from a minimum of 101 percent 98.1 to a maximum of 125 percent of the weighted average of rates charged by those insurers 98.2 and health maintenance organizations with individuals enrolled in: 98.3 (1) Medicare supplement plans in force in Minnesota; 98.4 (2) health maintenance organization Medicare supplement contracts of coverage 98.5 which are in force in Minnesota; and 98.6 (3) other plans of coverage similar to plans offered by the association based on 98.7 generally accepted actuarial principles; a n d 98.8 (e) the charge for health maintenance organization coverage shall be based on 98.9 generally accepted actuarial principles. ; and (f) the premium for a high-deductible, basic plan offered under section 62E.121 shall range from a minimum of 101 percent to a maximum of 125 percent of the weighted average of rates charged by those insurers and health maintenance organizations offering comparable plans outside of the Minnesota Comprehensive Health Association The list of insurers and health maintenance organizations whose rates are used to establish the premium for coverage offered by the association pursuant to paragraphs (a) to (d) and (f) shall be established by the commissioner on the basis of information which shall be provided to the association by all insurers and health maintenance organizations annually at the commissioner's request. This information shall include the number of individuals covered by each type of plan or contract specified in paragraphs (a) to (d) and (f) that is sold, issued, and renewed by the insurers and health maintenance organizations, including those plans or contracts available only on a renewal basis. The information shall also include the rates charged for each type of plan or contract In establishing premiums pursuant to this section, the association shall utilize generally accepted actuarial principles, provided that the association shall not discriminate in charging premiums based upon sex. In order to compute a weighted average for each type of plan or contract specified under paragraphs (a) to (d) and (f), the association shall, using the information collected pursuant to this subdivision, list insurers and health maintenance organizations in rank order of the total number of individuals covered by each insurer or health maintenance organization. The association shall then compute a weighted average of the rates charged for coverage by all the insurers and health maintenance organizations by: PAGE R4

5 98.32 (1) multiplying the numbers of individuals covered by each insurer or health maintenance organization by the rates charged for coverage; (2) separately summing both the number of individuals covered by all the insurers and health maintenance organizations and all the products computed under clause (1); and 99.1 (3) dividing the total of the products computed under clause (1) by the total number 99.2 of individuals covered The association may elect to use a sample of information from the insurers and 99.4 health maintenance organizations for purposes of computing a weighted average. In no 99.5 case, however, may a sample used by the association to compute a weighted average 99.6 include information from fewer than the two insurers or health maintenance organizations 99.7 highest in rank order Sec. 3. [62E.121] HIGH-DEDUCTIBLE, BASIC PLAN S_u_b_d_i_v_i_s_i_o_n 1_._ Required offering. The Minnesota Comprehensive Health Association shall offer a high-deductible, basic plan that meets the requirements specified in this section. The high-deductible, basic plan is a one-person plan. Any dependents must be covered separately S_u_b_d_. 2_._ Annual deductible; out-of-pocket maximum. (a) The plan shall provide the following in-network annual deductible options: $3,000, $6,000, $9,000, and $12, The in-network annual out-of-pocket maximum for each annual deductible option shall be $1,000 greater than the amount of the annual deductible (b) The deductible is subject to an annual increase based on the change in the Consumer Price Index (CPI) S_u_b_d_. 3_._ Office visits for nonpreventive care. The following co-payments shall apply for each of the first three office visits per calendar year for nonpreventive care: (1) $30 per visit for the $3,000 annual deductible option; (2) $40 per visit for the $6,000 annual deductible option; (3) $50 per visit for the $9,000 annual deductible option; and (4) $60 per visit for the $12,000 annual deductible option For the fourth and subsequent visits during the calendar year, 80 percent coverage is provided under all deductible options, after the deductible is met S_u_b_d_. 4_._ Preventive care. One hundred percent coverage is provided for preventive care, and no co-payment, coinsurance, or deductible requirements apply S_u_b_d_. 5_._ Prescription drugs. A $10 co-payment applies to preferred generic drugs Preferred brand-name drugs require an enrollee payment of 100 percent of the health plan's discounted rate. PAGE R5

6 99.32 S_u_b_d_. 6_._ Convenience care center visits. A $20 co-payment applies for the first three convenience care center visits during a calendar year. For the fourth and subsequent visits during a calendar year, 80 percent coverage is provided after the deductible is met S_u_b_d_. 7_._ Urgent care center visits. A $100 co-payment applies for the first urgent care center visit during a calendar year. For the second and subsequent visits during a calendar year, 80 percent coverage is provided after the deductible is met S_u_b_d_. 8_._ Emergency room visits. A $200 co-payment applies for the first emergency room visit during a calendar year. For the second and subsequent visits during a calendar year, 80 percent coverage is provided after the deductible is met S_u_b_d_. 9_._ Lab and x-ray; hospital services; ambulance; surgery. Lab and x-ray services, hospital services, ambulance services, and surgery are covered at 80 percent after the deductible is met S_u_b_d_. 1_0_._ Eyewear. The health plan pays up to $50 per calendar year for eyewear S_u_b_d_. 1_1_._ Maternity. Maternity, labor and delivery, and postpartum care are not covered. One hundred percent coverage is provided for prenatal care and no deductible applies S_u_b_d_. 1_2_._ Other eligible health care services. Other eligible health care services are covered at 80 percent after the deductible is met S_u_b_d_. 1_3_._ Option to remove mental health and substance abuse coverage Enrollees have the option of removing mental health and substance abuse coverage in exchange for a reduced premium S_u_b_d_. 1_4_._ Option to upgrade prescription drug coverage. Enrollees have the option to upgrade prescription drug coverage to include coverage for preferred brand-name drugs with a $50 co-payment and coverage for nonpreferred drugs with a $100 co-payment in exchange for an increased premium S_u_b_d_. 1_5_._ Out-of-network services. (a) The out-of-network annual deductible is double the in-network annual deductible (b) There is no out-of-pocket maximum for out-of-network services (c) Benefits for out-of-network services are covered at 60 percent after the deductible is met (d) The lifetime maximum benefit for out-of-network services is $1,000, S_u_b_d_. 1_6_._ Services not covered. Services not covered include: custodial care or rest care; most dental services; cosmetic services; refractive eye surgery; infertility services; and services that are investigational, not medically necessary, or received while on military duty. PAGE R6

7 Sec. 4. Minnesota Statutes 2010, section 62E.14, is amended by adding a subdivision to read: S_u_b_d_. 4_f_._ Waiver of preexisting conditions for persons covered by healthy Minnesota contribution program. A person may enroll in the comprehensive plan with a waiver of the preexisting condition limitation in subdivision 3 if the person is eligible for the healthy Minnesota contribution program, and has been denied coverage as described under section 256L.031, subdivision Sec. 4. Minnesota Statutes 2010, section 62E.14, is amended by adding a subdivision 73.2 to read: 73.3 S_u_b_d_. 4_f_._ Waiver of preexisting conditions for persons covered by healthy 73.4 Minnesota contribution program. A person may enroll in the comprehensive plan with 73.5 a waiver of the preexisting condition limitation in subdivision 3 if the person is eligible for 73.6 the healthy Minnesota contribution program, and has been denied coverage as described 73.7 under section 256B.695, subdivision 6, or section 256L.031, subdivision Sec. 5. Minnesota Statutes 2010, section 62J.04, subdivision 9, is amended to read: Subd. 9. Growth limits; federal programs. The commissioners of health and human services shall establish a rate methodology for Medicare and Medicaid risk-based contracting with health plan companies that is consistent with statewide growth limits T h e m e t h o d o l o g y s h a l l b e p r e s e n t e d f o r r e v i e w b y t h e M i n n e s o t a H e a l t h C a r e C o m m i s s i o n a n d t h e L e g i s l a t i v e C o m m i s s i o n o n H e a l t h C a r e A c c e s s p r i o r t o t h e s u b m i s s i o n o f a w a i v e r r e q u e s t t o t h e C e n t e r s f o r M e d i c a r e a n d M e d i c a i d S e r v i c e s a n d s u b s e q u e n t i m p l e m e n t a t i o n o f t h e m e t h o d o l o g y Sec. 6. Minnesota Statutes 2010, section 62J.692, subdivision 9, is amended to read: 73.8 Sec. 5. Minnesota Statutes 2010, section 62J.692, subdivision 7, is amended to read: 73.9 Subd. 7. Transfers from the commissioner of human services. Of the amount transferred according to section 256B.69, subdivision 5c, paragraph (a), clauses (1) to (4), $21,714,000 shall be distributed as follows: (1) $2,157,000 shall be distributed by the commissioner to the University of Minnesota Board of Regents for the purposes described in sections to ; (2) $1,035,360 shall be distributed by the commissioner to the Hennepin County Medical Center for clinical medical education; (3) $17,400,000 shall be distributed by the commissioner to the University of Minnesota Board of Regents for purposes of medical education; and (4) $1,121,640 shall be distributed by the commissioner to clinical medical education dental innovation grants in accordance with subdivision 7a; a n d ( 5 ) t h e r e m a i n d e r o f t h e a m o u n t t r a n s f e r r e d a c c o r d i n g t o s e c t i o n B. 6 9, s u b d i v i s i o n 5 c, c l a u s e s ( 1 ) t o ( 4 ), s h a l l b e d i s t r i b u t e d b y t h e c o m m i s s i o n e r a n n u a l l y t o c l i n i c a l m e d i c a l e d u c a t i o n p r o g r a m s t h a t m e e t t h e q u a l i fi c a t i o n s o f s u b d i v i s i o n 3 b a s e d o n t h e f o r m u l a i n s u b d i v i s i o n 4, p a r a g r a p h ( a ). PAGE R7

8 Subd. 9. Review of eligible providers. The commissioner and the Medical Education and Research Costs Advisory Committee may review provider groups included in the definition of a clinical medical education program to assure that the distribution of the funds continue to be consistent with the purpose of this section. The results of any such reviews must be reported to the L e g i s l a t i v e C o m m i s s i o n o n H e a l t h C a r e A c c e s s chairs and ranking minority members of the legislative committees with jurisdiction over health care policy and finance Sec. 7. [62J.824] BILLING FOR PROCEDURES TO CORRECT MEDICAL ERRORS PROHIBITED A health care provider shall not bill a patient, and shall not be reimbursed, for any operation, treatment, or other care that is provided to reverse, correct, or otherwise minimize the affects of an adverse health care event, as described in section , subdivisions 2 to 7, for which that health care provider is responsible Sec. 8. Minnesota Statutes 2010, section 62Q.32, is amended to read: Q.32 LOCAL OMBUDSPERSON County board or community health service agencies may establish an office of ombudsperson to provide a system of consumer advocacy for persons receiving health care services through a health plan company. The ombudsperson's functions may include, but are not limited to: (a) mediation or advocacy on behalf of a person accessing the complaint and appeal procedures to ensure that necessary medical services are provided by the health plan company; and (b) investigation of the quality of services provided to a person and determine the extent to which quality assurance mechanisms are needed or any other system change may be needed. T h e c o m m i s s i o n e r o f h e a l t h s h a l l m a k e r e c o m m e n d a t i o n s f o r f u n d i n g t h e s e f u n c t i o n s i n c l u d i n g t h e a m o u n t o f f u n d i n g n e e d e d a n d a p l a n f o r d i s t r i b u t i o n. T h e c o m m i s s i o n e r s h a l l s u b m i t t h e s e r e c o m m e n d a t i o n s t o t h e L e g i s l a t i v e C o m m i s s i o n o n H e a l t h C a r e A c c e s s b y J a n u a r y 1 5, Sec. 9. [62Q.46] PAYMENT TO OUT-OF-NETWORK PROVIDERS A health plan company may limit payments to out-of-network providers to the usual and customary payment rate that applies to similarly situated providers participating in the health plan company's provider network Sec. 10. Minnesota Statutes 2010, section 62U.04, subdivision 3, is amended to read: PAGE R8

9 Subd. 3. Provider peer grouping. (a) The commissioner shall develop a peer grouping system for providers based on a combined measure that incorporates both provider risk-adjusted cost of care and quality of care, and for specific conditions as determined by the commissioner. In developing this system, the commissioner shall consult and coordinate with health care providers, health plan companies, state agencies, and organizations that work to improve health care quality in Minnesota. For purposes of the final establishment of the peer grouping system, the commissioner shall not contract with any private entity, organization, or consortium of entities that has or will have a direct financial interest in the outcome of the system (b) By no later than October 15, 2010, the commissioner shall disseminate information to providers on their total cost of care, total resource use, total quality of care, and the total care results of the grouping developed under this subdivision in comparison to an appropriate peer group. Any analyses or reports that identify providers may only be published after the provider has been provided the opportunity by the commissioner to review the underlying data and submit comments. Providers may be given any data for which they are the subject of the data. The provider shall have 30 days to review the data for accuracy and initiate an appeal as specified in paragraph (d) (c) By no later than January 1, 2011, the commissioner shall disseminate information to providers on their condition-specific cost of care, condition-specific resource use, condition-specific quality of care, and the condition-specific results of the grouping developed under this subdivision in comparison to an appropriate peer group. Any analyses or reports that identify providers may only be published after the provider has been provided the opportunity by the commissioner to review the underlying data and submit comments. Providers may be given any data for which they are the subject of the data. The provider shall have 30 days to review the data for accuracy and initiate an appeal as specified in paragraph (d) (d) The commissioner shall establish an appeals process to resolve disputes from providers regarding the accuracy of the data used to develop analyses or reports. When a provider appeals the accuracy of the data used to calculate the peer grouping system results, the provider shall: (1) clearly indicate the reason they believe the data used to calculate the peer group system results are not accurate; (2) provide evidence and documentation to support the reason that data was not accurate; and (3) cooperate with the commissioner, including allowing the commissioner access to data necessary and relevant to resolving the dispute If a provider does not meet the requirements of this paragraph, a provider's appeal shall be considered withdrawn. The commissioner shall not publish results for a specific provider under paragraph (e) or (f) while that provider has an unresolved appeal. PAGE R9

10 (e) Beginning January 1, 2011, the commissioner shall, no less than annually, publish information on providers' total cost, total resource use, total quality, and the results of the total care portion of the peer grouping process. The results that are published must be on a risk-adjusted basis (f) Beginning March 30, 2011, the commissioner shall no less than annually publish information on providers' condition-specific cost, condition-specific resource use, and condition-specific quality, and the results of the condition-specific portion of the peer grouping process. The results that are published must be on a risk-adjusted basis (g) Prior to disseminating data to providers under paragraph (b) or (c) or publishing information under paragraph (e) or (f), the commissioner shall ensure the scientific validity and reliability of the results according to the standards described in paragraph (h) If additional time is needed to establish the scientific validity and reliability of the results, the commissioner may delay the dissemination of data to providers under paragraph (b) or (c), or the publication of information under paragraph (e) or (f). If the delay is more than 60 days, the commissioner shall report in writing to the L e g i s l a t i v e C o m m i s s i o n o n H e a l t h C a r e A c c e s s chairs and ranking minority members of the legislative committees with jurisdiction over health care policy and finance the following information: (1) the reason for the delay; (2) the actions being taken to resolve the delay and establish the scientific validity and reliability of the results; and (3) the new dates by which the results shall be disseminated If there is a delay under this paragraph, the commissioner must disseminate the information to providers under paragraph (b) or (c) at least 90 days before publishing results under paragraph (e) or (f) (h) The commissioner's assurance of valid and reliable clinic and hospital peer grouping performance results shall include, at a minimum, the following: (1) use of the best available evidence, research, and methodologies; and (2) establishment of an explicit minimum reliability threshold developed in collaboration with the subjects of the data and the users of the data, at a level not below nationally accepted standards where such standards exist In achieving these thresholds, the commissioner shall not aggregate clinics that are not part of the same system or practice group. The commissioner shall consult with and solicit feedback from representatives of physician clinics and hospitals during the peer grouping data analysis process to obtain input on the methodological options prior to final analysis and on the design, development, and testing of provider reports Sec. 11. Minnesota Statutes 2010, section 62U.04, subdivision 9, is amended to read: PAGE R10

11 Subd. 9. Uses of information. (a) B y n o l a t e r t h a n 1 2 m o n t h s a f t e r t h e c o m m i s s i o n e r p u b l i s h e s t h e i n f o r m a t i o n i n s u b d i v i s i o n 3, p a r a g r a p h ( e ) : For product renewals or for new products that are offered, after 12 months have elapsed from publication by the commissioner of the information in subdivision 3, paragraph (e): (1) the commissioner of management and budget shall use the information and methods developed under subdivision 3 to strengthen incentives for members of the state employee group insurance program to use high-quality, low-cost providers; (2) all political subdivisions, as defined in section 13.02, subdivision 11, that offer health benefits to their employees must offer plans that differentiate providers on their cost and quality performance and create incentives for members to use better-performing providers; (3) all health plan companies shall use the information and methods developed under subdivision 3 to develop products that encourage consumers to use high-quality, low-cost providers; and (4) health plan companies that issue health plans in the individual market or the small employer market must offer at least one health plan that uses the information developed under subdivision 3 to establish financial incentives for consumers to choose higher-quality, lower-cost providers through enrollee cost-sharing or selective provider networks (b) By January 1, 2011, the commissioner of health shall report to the governor and the legislature on recommendations to encourage health plan companies to promote widespread adoption of products that encourage the use of high-quality, low-cost providers The commissioner's recommendations may include tax incentives, public reporting of health plan performance, regulatory incentives or changes, and other strategies Sec. 12. Minnesota Statutes 2010, section 62U.06, subdivision 2, is amended to read: Subd. 2. Legislative oversight. Beginning January 15, 2009, the commissioner of health shall submit to the L e g i s l a t i v e C o m m i s s i o n o n H e a l t h C a r e A c c e s s chairs and ranking minority members of the legislative committees with jurisdiction over health care policy and finance periodic progress reports on the implementation of this chapter and sections 256B.0751 to 256B Sec. 13. Minnesota Statutes 2010, section , subdivision 2b, is amended to read: PAGE R11

12 Subd. 2b. Performance payments. T h e c o m m i s s i o n e r s h a l l d e v e l o p a n d i m p l e m e n t a p a y - f o r - p e r f o r m a n c e s y s t e m t o p r o v i d e p e r f o r m a n c e p a y m e n t s t o e l i g i b l e m e d i c a l g r o u p s a n d c l i n i c s t h a t d e m o n s t r a t e o p t i m u m c a r e i n s e r v i n g i n d i v i d u a l s w i t h c h r o n i c d i s e a s e s w h o a r e e n r o l l e d i n h e a l t h c a r e p r o g r a m s a d m i n i s t e r e d b y t h e c o m m i s s i o n e r u n d e r c h a p t e r s B, D, a n d L. The commissioner may receive any federal matching money that is made available through the medical assistance program for managed care oversight contracted through vendors, including consumer surveys, studies, and external quality reviews as required by the federal Balanced Budget Act of 1997, Code of Federal Regulations, title 42, part 438-managed care, subpart E-external quality review. Any federal money received for managed care oversight is appropriated to the commissioner for this purpose. The commissioner may expend the federal money received in either year of the biennium Sec. 14. Minnesota Statutes 2010, section , is amended by adding a subdivision to read: S_u_b_d_. 3_3_._ Contingency contract fees. When the commissioner enters into a contingency-based contract for the purpose of recovering medical assistance or MinnesotaCare funds, the commissioner may retain that portion of the recovered funds equal to the amount of the contingency fee Sec. 6. Minnesota Statutes 2010, section , is amended by adding a subdivision to read: S_u_b_d_. 3_3_._ Contingency contract fees. When the commissioner enters into a contingency-based contract for the purpose of recovering medical assistance or MinnesotaCare funds, the commissioner may retain that portion of the recovered funds equal to the amount of the contingency fee Sec. 15. Minnesota Statutes 2010, section , is amended by adding a subdivision to read: S_u_b_d_. 3_4_._ Elimination of certain provider reporting requirements; sunset of new requirements. (a) Notwithstanding any other law, rule, or provision to the contrary, effective July 1, 2012, the commissioner shall cease collecting from health care providers and purchasers all reports and data related to health care costs, quality, utilization, access, patient encounters, and disease surveillance and public health, and related to provider licensure, monitoring, finances, and regulation, unless the reports or data are necessary for federal compliance. For purposes of this subdivision, the term "health care providers and purchasers" has the meaning provided in section 62J.03, subdivision 8, except that it also includes nursing homes, health plan companies as defined in section 62Q.01, subdivision , and managed care and county-based purchasing plans delivering services under sections B.69 and 256B (b) The commissioner shall present to the 2012 legislature draft legislation to repeal, effective July 1, 2012, the provider reporting requirements identified under paragraph (a) that are not necessary for federal compliance. PAGE R12

13 (c) The commissioner may establish new provider reporting requirements to take effect on or after July 1, These new reporting requirements must sunset five years from their effective date, unless they are renewed by the commissioner. All new provider reporting requirements and requests for their renewal shall not take effect unless they are enacted in state law Sec. 16. Minnesota Statutes 2010, section , subdivision 2b, is amended to read: Sec. 7. Minnesota Statutes 2010, section , subdivision 2b, is amended to read: Subd. 2b. Operating payment rates. In determining operating payment rates for admissions occurring on or after the rate year beginning January 1, 1991, and every two years after, or more frequently as determined by the commissioner, the commissioner shall obtain operating data from an updated base year and establish operating payment rates per admission for each hospital based on the cost-finding methods and allowable costs of the Medicare program in effect during the base year. Rates under the general assistance medical care, medical assistance, and MinnesotaCare programs shall not be rebased to more current data on January 1, 1997, January 1, 2005, for the first 24 months of the rebased period beginning January 1, For the first 24 months of the rebased period beginning January 1, 2011, rates shall not be rebased, except that a Minnesota long-term hospital shall be rebased effective January 1, 2011, based on its most recent Medicare cost report ending on or before September 1, 2008, with the provisions under subdivisions 9 and 23, based on the rates in effect on December 31, For subsequent rate setting periods in which the base years are updated, a Minnesota long-term hospital's base year shall remain within the same period as other hospitals. E f f e c t i v e J a n u a r y 1, , r a t e s s h a l l b e r e b a s e d a t f u l l v a l u e Rates must not be rebased to more current data for the first six months of the rebased period beginning January 1, The base year operating payment rate per admission is standardized by the case mix index and adjusted by the hospital cost index, relative values, and disproportionate population adjustment The cost and charge data used to establish operating rates shall only reflect inpatient services covered by medical assistance and shall not include property cost information and costs recognized in outlier payments Sec. 17. Minnesota Statutes 2010, section , is amended by adding a subdivision to read: Subd. 2b. Operating payment rates. In determining operating payment rates for admissions occurring on or after the rate year beginning January 1, 1991, and every two years after, or more frequently as determined by the commissioner, the commissioner 74.1 shall obtain operating data from an updated base year and establish operating payment 74.2 rates per admission for each hospital based on the cost-finding methods and allowable 74.3 costs of the Medicare program in effect during the base year. Rates under the general 74.4 assistance medical care, medical assistance, and MinnesotaCare programs shall not be 74.5 rebased to more current data on January 1, 1997, January 1, 2005, for the first 24 months 74.6 of the rebased period beginning January 1, For the first 24 months of the rebased 74.7 period beginning January 1, 2011, rates shall not be rebased, except that a Minnesota 74.8 long-term hospital shall be rebased effective January 1, 2011, based on its most recent 74.9 Medicare cost report ending on or before September 1, 2008, with the provisions under subdivisions 9 and 23, based on the rates in effect on December 31, For subsequent rate setting periods in which the base years are updated, a Minnesota long-term hospital's base year shall remain within the same period as other hospitals. E f f e c t i v e J a n u a r y 1, , r a t e s s h a l l b e r e b a s e d a t f u l l v a l u e Rates must not be rebased to more current data for the first six months of the rebased period beginning January 1, The base year operating payment rate per admission is standardized by the case mix index and adjusted by the hospital cost index, relative values, and disproportionate population adjustment The cost and charge data used to establish operating rates shall only reflect inpatient services covered by medical assistance and shall not include property cost information and costs recognized in outlier payments. PAGE R13

14 S_u_b_d_. 3_1_._ Initiatives to reduce incidence of low birth-weight. The commissioner shall require hospitals located in the seven-county metropolitan area, as a condition of contract, to implement strategies to reduce the incidence of low birth-weight in geographic areas identified by the commissioner as having a higher than average incidence of low birth-weight, with special emphasis on areas within a one-mile radius of the hospital These strategies may focus on smoking prevention and cessation, ensuring that pregnant women get adequate nutrition, and addressing demographic, social, and environmental risk factors. The strategies must coordinate health care with social services and the local public health system, and offer patient education through appropriate means The commissioner shall require hospitals to submit proposed initiatives for approval to the commissioner by January 1, 2012, and the commissioner shall require hospitals to implement approved initiatives by July 1, The commissioner shall evaluate the strategies adopted to reduce low birth-weight, and shall require hospitals to submit outcome and other data necessary for the evaluation Sec. 18. Minnesota Statutes 2010, section 256B.04, subdivision 18, is amended to read: Sec. 8. Minnesota Statutes 2010, section 256B.04, subdivision 18, is amended to read: Subd. 18. Applications for medical assistance. (a) The state agency may take applications for medical assistance and conduct eligibility determinations for MinnesotaCare enrollees (b) The commissioner of human services shall modify the Minnesota health care programs application form to add a question asking applicants: "Are you a United States military veteran?" Sec. 19. Minnesota Statutes 2010, section 256B.05, is amended by adding a subdivision to read: S_u_b_d_. 5_._ Technical assistance. The commissioner shall provide technical assistance to county agencies in processing complex medical assistance applications, including but not limited to applications for long-term care services. The commissioner shall provide this technical assistance using existing financial resources Sec. 20. Minnesota Statutes 2010, section 256B.055, subdivision 15, is amended to read: Subd. 15. Adults without children. (a) Medical assistance may be paid for a person who is: (1) at least age 21 and under age 65; (2) not pregnant; (3) not entitled to Medicare Part A or enrolled in Medicare Part B under Title XVIII of the Social Security Act; Subd. 18. Applications for medical assistance. (a) The state agency may take applications for medical assistance and conduct eligibility determinations for MinnesotaCare enrollees (b) The commissioner of human services shall modify the Minnesota health care programs application form to add a question asking applicants: "Are you a U.S. military veteran?" PAGE R14

15 (4) not an adult in a family with children as defined in section 256L.01, subdivision a; and (5) not described in another subdivision of this section (b) If the federal government eliminates the federal Medicaid match or reduces the federal Medicaid matching rate beyond any adjustment required as part of the annual recalculation of the state's overall Medicaid matching rate for persons eligible under this subdivision, the commissioner shall eliminate coverage for persons enrolled under this subdivision and suspend new enrollment under this subdivision effective on the date of the elimination or reduction EFFECTIVE DATE. The amendments to this section are effective the day following final enactment and expire January 1, Sec. 21. Minnesota Statutes 2010, section 256B.056, subdivision 3, is amended to read: Subd. 3. Asset limitations for individuals and families. ( a ) To be eligible for medical assistance, a person must not individually own more than $3,000 in assets, or if a member of a household with two family members, husband and wife, or parent and child, the household must not own more than $6,000 in assets, plus $200 for each additional legal dependent. In addition to these maximum amounts, an eligible individual or family may accrue interest on these amounts, but they must be reduced to the maximum at the time of an eligibility redetermination. The accumulation of the clothing and personal needs allowance according to section 256B.35 must also be reduced to the maximum at the time of the eligibility redetermination. The value of assets that are not considered in determining eligibility for medical assistance is the value of those assets excluded under the supplemental security income program for aged, blind, and disabled persons, with the following exceptions: (1) household goods and personal effects are not considered; (2) capital and operating assets of a trade or business that the local agency determines are necessary to the person's ability to earn an income are not considered; (3) motor vehicles are excluded to the same extent excluded by the supplemental security income program; (4) assets designated as burial expenses are excluded to the same extent excluded by the supplemental security income program. Burial expenses funded by annuity contracts or life insurance policies must irrevocably designate the individual's estate as contingent beneficiary to the extent proceeds are not used for payment of selected burial expenses; and PAGE R15

16 (5) effective upon federal approval, for a person who no longer qualifies as an employed person with a disability due to loss of earnings, assets allowed while eligible for medical assistance under section 256B.057, subdivision 9, are not considered for months, beginning with the first month of ineligibility as an employed person with a disability, to the extent that the person's total assets remain within the allowed limits of section 256B.057, subdivision 9, paragraph (c) ( b ) N o a s s e t l i m i t s h a l l a p p l y t o p e r s o n s e l i g i b l e u n d e r s e c t i o n B , s u b d i v i s i o n EFFECTIVE DATE. This section is effective January 1, Sec. 22. Minnesota Statutes 2010, section 256B.056, subdivision 4, is amended to read: Subd. 4. Income. (a) To be eligible for medical assistance, a person eligible under section 256B.055, subdivisions 7, 7a, and 12, may have income up to 100 percent of the federal poverty guidelines. Effective January 1, 2000, and each successive January, recipients of supplemental security income may have an income up to the supplemental security income standard in effect on that date (b) To be eligible for medical assistance, families and children may have an income up to 133-1/3 percent of the AFDC income standard in effect under the July 16, 1996, AFDC state plan. Effective July 1, 2000, the base AFDC standard in effect on July 16, , shall be increased by three percent (c) Effective July 1, 2002, to be eligible for medical assistance, families and children may have an income up to 100 percent of the federal poverty guidelines for the family size ( d ) T o b e e l i g i b l e f o r m e d i c a l a s s i s t a n c e u n d e r s e c t i o n B , s u b d i v i s i o n 1 5, a p e r s o n m a y h a v e a n i n c o m e u p t o 7 5 p e r c e n t o f f e d e r a l p o v e r t y g u i d e l i n e s f o r t h e f a m i l y s i z e ( e ) (d) In computing income to determine eligibility of persons under paragraphs (a) to ( d ) (c) who are not residents of long-term care facilities, the commissioner shall disregard increases in income as required by Public Law Numbers , section 503; ; and Veterans aid and attendance benefits and Veterans Administration unusual medical expense payments are considered income to the recipient EFFECTIVE DATE. This section is effective January 1, Sec. 23. Minnesota Statutes 2010, section 256B.06, subdivision 4, is amended to read: Sec. 9. Minnesota Statutes 2010, section 256B.06, subdivision 4, is amended to read: PAGE R16