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S.F. No. 139 - MNsure (Third Engrossment)
Author: Senator Tony Lourey
Prepared By: Katie Cavanor, Senate Counsel (651/296-3801)
Date: April 8, 2015


S.F. No. 139 eliminates the Board of Directors for MNsure, designates MNsure a separate state agency, and makes the necessary changes relating to this new designation.

Section 1 (15.01) designates the Department of MNsure as a department of the state government.

Section 2 (15A.0815, subd. 2) adds the Commissioner of MNsure to the list of positions in which the salary for the position cannot exceed 133 per cent of the governor’s salary.

Section 3 (62V.02, subd. 2) requires health plans offered outside of MNsure and qualified health plans offered through MNsure must receive rate approval from the Commissioner of Commerce no later than 30 days prior to the beginning of the annual open enrollment period for MNsure and final and approved rates must be released to the public at a uniform time no later than 30 days prior to the beginning of the open enrollment period.

Sections 4 and 5 (62V.02, subds. 2 and 11) remove the definition of “board” and changes it to “commissioner” to refer to the Commissioner of MNsure and makes this change in the definition for “qualified health plan.”

Section 6 (62V.03) specifies that MNsure is a department of the state government.  This section also specifies that MNsure will be subject to audits by the legislative auditor like any other state agency.  This section also removes the following references to specific laws that were applicable to the MNsure board:  10A.07 (conflicts of interest); 10A.09 (statements of economic interest); 10A.071 (gifts by lobbyists prohibited).  It should be noted that these sections would continue to apply to the commissioner, deputy commissioner, and all assistant commissioners of the Department of MNsure as they apply to all other state agencies.  This section also strikes the reference to the open meeting law in chapter 13D (this chapter would apply to MNsure as it currently does for state agencies and departments.)  This section also removes the current exemptions to certain sections of chapter 16E (Office of MN.IT Services), requiring the Department of MNsure to comply with all applicable sections of chapter 16E.

Section 7 (62V.04) eliminates the Board of Directors.  Requires the commissioner to continue to maintain advisory committees to provide stakeholders the opportunity to advise the commissioner regarding the operation of MNsure. Clarifies that the advisory committees are subject to the Open Meeting Law and must meet at least on a quarterly basis.  This section also changes a number of references from the “board” to the “commissioner.”

Section 8 (62V.05) contains the responsibilities and powers of MNsure and makes the following changes:

Subdivision 1 changes references from the “board” to the “commissioner.”  This subdivision also strikes the reference to a separate compensation plan for MNsure’s director and managerial staff and the power to establish a budget to MNsure.

Subdivision 3 strikes obsolete language and changes references.  Requires the Commissioners of MNsure and Human Services to establish an insurance producer incentive program to compensate insurance producers for application enrollment assistance for public health care programs.

Subdivision 4 strikes obsolete language and changes references.  It also adds language specifying that entities that are eligible to be navigators may serve as in-person assisters.

Subdivision 5 strikes obsolete language, changes references, and updates several date references.

Subdivision 6 changes references.

Subdivision 7 changes references.  This subdivision also strikes the requirement that MNsure establish and maintain an agreement with the Office of MN.IT Services for information technology (IT) services, and adds a requirement that the commissioner consult with MN.IT and the Commissioner of Human Services on all decisions that relate to IT services that permit MNsure the ability to administer eligibility for public health care programs and qualified health plans.

Subdivision 8 changes references and strikes the “super” expedited rulemaking authority the MNsure board had until January 1, 2015.  The commissioner will still have the option to use expedited rulemaking process under section 14.389.

Subdivision 10 changes references and strikes the language that states that MNsure can provide insurance to its employees. (MNsure employees would be state employees.)

Subdivision 11 prohibits MNsure from certifying, selecting, or offering products and policies of coverage other than qualified health plans or dental plans.  This prohibition expires July 1, 2018.

Section 9 (62V.06) changes references and strikes obsolete language.

Section 10 (62V.07) specifies that the MNsure account shall be created in the state government special revenue fund instead of the special revenue fund and strikes the language appropriating funds in the MNsure account to MNsure for the operations of MNsure.  (The result of these changes is that the budget for MNsure would follow the same procedure that is followed by every other state agency, and would require funds for the operation of MNsure be appropriated by the legislature.)

Section 11 (62V.08) changes references.

Section 12 (62V.09) changes references and strikes a reference to a repealed chapter.

Section 13 (256.962, subd. 5) specifies that community assistance partners and insurance producers shall be paid an application assistance bonus of $70 for each applicant the partner or producer assists in successfully enrolling in medical assistance or MinnesotaCare.  To be eligible for this bonus, an insurance producer must have completed a certification training program administered by the Commissioner of MNsure.

Section 14 requires the Commissioner of Commerce, in consultation with the Commissioner of MNsure, to develop a proposal to allow small employers the ability to receive the small business health care tax credit when the small employer pays the premiums on behalf of employees enrolled in either a qualified health plan or small group health plan offered outside of MNsure.

Section 15 repeals section 62V.11 (Legislative Oversight Committee).

Section 16 establishes a July 1, 2015, effective date.



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