Bill Text: MN HF1709 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Small employer permitted to retain small employer health coverage when its workforce is reduced to one covered employee.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-05-14 - Introduction and first reading, referred to Commerce and Regulatory Reform [HF1709 Detail]
Download: Minnesota-2011-HF1709-Introduced.html
1.2relating to insurance; permitting a small employer to retain small employer health
1.3coverage when its workforce is reduced to one covered employee;amending
1.4Minnesota Statutes 2010, section 62L.03, subdivision 1.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 62L.03, subdivision 1, is amended to read:
1.7 Subdivision 1. Guaranteed issue and reissue. (a) Every health carrier shall, as a
1.8condition of authority to transact business in this state in the small employer market,
1.9affirmatively market, offer, sell, issue, and renew any of its health benefit plans, on a
1.10guaranteed issue basis, to any small employer, including a small employer covered by
1.11paragraph (b), that meets the participation and contribution requirements of subdivision 3,
1.12as provided in this chapter.
1.13(b) A small employer that has its workforce reduced to one covered employee may
1.14continue coverageas under a small employer for 12 months from the date the group is
1.15reduced to one employee plan if the small employer plan has been in effect continuously
1.16for at least 12 months immediately prior to the workforce reduction and the remaining
1.17covered employee has been continuously covered under that plan during that entire period.
1.18The health carrier must make renewals of the small employer plan available to that
1.19employer on the same basis upon which renewals are available to employers that are still
1.20small employers as defined under this chapter.
1.21(c) Notwithstanding paragraph (a), a health carrier may, at the time of coverage
1.22renewal, modify the health coverage for a product offered in the small employer market if
1.23the modification is consistent with state law, approved by the commissioner, and effective
2.1on a uniform basis for all small employers purchasing that product other than through a
2.2qualified association in compliance with section62L.045, subdivision 2 .
2.3Paragraph (a) does not apply to a health benefit plan designed for a small employer
2.4to comply with a collective bargaining agreement, provided that the health benefit plan
2.5otherwise complies with this chapter and is not offered to other small employers, except
2.6for other small employers that need it for the same reason. This paragraph applies only
2.7with respect to collective bargaining agreements entered into prior to August 21, 1996,
2.8and only with respect to plan years beginning before the later of July 1, 1997, or the date
2.9upon which the last of the collective bargaining agreements relating to the plan terminates
2.10determined without regard to any extension agreed to after August 21, 1996.
2.11(d) Every health carrier participating in the small employer market shall make
2.12available both of the plans described in section62L.05 to small employers and shall fully
2.13comply with the underwriting and the rate restrictions specified in this chapter for all
2.14health benefit plans issued to small employers.
2.15(e) A health carrier may cease to transact business in the small employer market as
2.16provided under section62L.09 .
2.17EFFECTIVE DATE.This section is effective the day following final enactment.
1.3coverage when its workforce is reduced to one covered employee;amending
1.4Minnesota Statutes 2010, section 62L.03, subdivision 1.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 62L.03, subdivision 1, is amended to read:
1.7 Subdivision 1. Guaranteed issue and reissue. (a) Every health carrier shall, as a
1.8condition of authority to transact business in this state in the small employer market,
1.9affirmatively market, offer, sell, issue, and renew any of its health benefit plans, on a
1.10guaranteed issue basis, to any small employer, including a small employer covered by
1.11paragraph (b), that meets the participation and contribution requirements of subdivision 3,
1.12as provided in this chapter.
1.13(b) A small employer that has its workforce reduced to one covered employee may
1.14continue coverage
1.15
1.16for at least 12 months immediately prior to the workforce reduction and the remaining
1.17covered employee has been continuously covered under that plan during that entire period.
1.18The health carrier must make renewals of the small employer plan available to that
1.19employer on the same basis upon which renewals are available to employers that are still
1.20small employers as defined under this chapter.
1.21(c) Notwithstanding paragraph (a), a health carrier may, at the time of coverage
1.22renewal, modify the health coverage for a product offered in the small employer market if
1.23the modification is consistent with state law, approved by the commissioner, and effective
2.1on a uniform basis for all small employers purchasing that product other than through a
2.2qualified association in compliance with section
2.3Paragraph (a) does not apply to a health benefit plan designed for a small employer
2.4to comply with a collective bargaining agreement, provided that the health benefit plan
2.5otherwise complies with this chapter and is not offered to other small employers, except
2.6for other small employers that need it for the same reason. This paragraph applies only
2.7with respect to collective bargaining agreements entered into prior to August 21, 1996,
2.8and only with respect to plan years beginning before the later of July 1, 1997, or the date
2.9upon which the last of the collective bargaining agreements relating to the plan terminates
2.10determined without regard to any extension agreed to after August 21, 1996.
2.11(d) Every health carrier participating in the small employer market shall make
2.12available both of the plans described in section
2.13comply with the underwriting and the rate restrictions specified in this chapter for all
2.14health benefit plans issued to small employers.
2.15(e) A health carrier may cease to transact business in the small employer market as
2.16provided under section
2.17EFFECTIVE DATE.This section is effective the day following final enactment.
