Bill Text: MN HF8 | 2011-2012 | 87th Legislature | Chaptered

Minnesota House Bill 8 (Prior Session Legislation)

Bill Title: Unified personal health premium accounts permitted.

Sponsorship: Partisan Bill (Republican 26)

Status: (Vetoed) 2012-05-03 - Governor's action Veto Chapter 276 [HF8 Detail]

Download: Minnesota-2011-HF8-Chaptered.html

CHAPTER 276--H.F.No. 8

An act

relating to insurance; permitting certain entities to administer unified
personal health premium accounts;proposing coding for new law as Minnesota
Statutes, chapter 62V; repealing Minnesota Statutes 2010, section 62L.12,
subdivisions 3, 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

    Section 1. [62V.01] DEFINITIONS.
    Subdivision 1. Scope of definitions. For purposes of this act, the terms defined
in this section have the meanings given.
    Subd. 2. Commissioner. "Commissioner" means the commissioner of commerce.
    Subd. 3. Dependent. "Dependent" means an individual's spouse or tax dependent.
    Subd. 4. Health insurance. "Health insurance" means an individual health plan, as
defined in section 62A.011, subdivision 3, including coverage issued by the Minnesota
Comprehensive Health Association under sections 62E.08 to 62E.19.
    Subd. 5. Trustee. "Trustee" means an entity that has trust powers under state or
federal law.
    Subd. 6. Unified personal health premium account or account. "Unified personal
health premium account" or "account" means a trust account created for the purpose of
receiving funds from multiple sources for the payment of, or reimbursement for, health
insurance premiums.
    Subd. 7. Unified personal health premium account administrator or
administrator. "Unified personal health premium account administrator" or
"administrator" means an entity that has the authority to administer a unified personal
health premium account.

    Sec. 2. [62V.02] REGISTRATION REQUIRED.
(a) Only a private-sector entity or individual registered with the commissioner as
a unified personal health premium account administrator may administer an account on
behalf of a resident of this state.
(b) To register under this section, a private sector entity or individual must be:
(1) a licensed insurance producer, as defined in section 60K.31, subdivision 6, under
the insurance authority described in section 60K.38, subdivision 1, paragraph (b), clause
(1), (2), or (5);
(2) a licensed vendor of risk management services or entity administering a
self-insurance or insurance plan under section 60A.23, subdivision 8; or
(3) a federally or state-chartered bank or credit union.
(c) An applicant for registration under this section shall pay a fee of $250 for initial
registration and $50 for each three-year renewal.

    Sec. 3. [62V.03] REQUIREMENTS; ADMINISTRATION OF UNIFIED
PERSONAL HEALTH PREMIUM ACCOUNT.
    Subdivision 1. Nature of arrangements. (a) Administrators of a unified personal
health premium account under contract with an employer must conduct business in
accordance with a written contract.
(b) Administrators may conduct business directly with individuals in accordance
with a written agreement.
(c) The written agreement between a unified personal health premium account
administrator and its customer must specify the services to be provided to the customer,
the payment for each service including administrative costs, and the timing and method of
each payment or type of payment.
(d) An administrator must separately disclose to the beneficiary of the account in
writing any payment from an insurer, financial institution, or other business entity received
in connection with the administration of the account.
(e) An administrator may administer unified personal health premium accounts
separately or in conjunction with other employee benefit services, including services
that facilitate and coordinate tax-preferred payments for health care and coverage under
Internal Revenue Code, sections 105, 106, and 125.
(f) An administrator shall create and maintain records of receipts, payments, and
other transactions, sufficient to enable the individual to benefit from tax advantages
available to the individual under Internal Revenue Code, sections 105, 106, 125, and other
relevant sections, and under Minnesota income tax law, for health insurance paid by or on
behalf of the individual. The administrator shall identify and notify the account holder and
contributors of any applicable tax subsidies and tax credits for which the account holder or
contributor qualifies in connection with the account or items paid for through the account.
The records and procedures must be capable of segregating funds to maintain restrictions
on the funds received from contributors.
(g) Individual insurance market products paid for through the account under this
section are not an employer-sponsored plan subject to state or federal group insurance
market requirements.
    Subd. 2. Trust account requirements. (a) Contributions to an individual's account
may be made by the individual, the individual's employer or former employer, the
individual's family members or dependents, charitable organizations, or any other source.
(b) Tax-preferred contributions under Internal Revenue Code, sections 105 and 106,
must be maintained in a separate account.
(c) A trust created and trustees appointed under this act shall:
(1) have the powers granted under, and shall comply with, the provisions of chapter
501B that are relevant to a trust created for purposes of this act;
(2) allow for financial contributions from multiple sources;
(3) make funds available for the payment of premiums on any type of health
insurance included in section 62V.01, subdivision 4, from any insurance company, subject
to any restriction under paragraph (b);
(4) permit the administrator to draw funds from the account for the payment or
reimbursement of health insurance premiums under a written agreement with the owner
of the account;
(5) segregate funds to maintain restrictions on the funds received from contributors;
and
(6) guarantee that funds contributed by an employer will remain available to the
account holder after the account holder's term of employment with the employer ends.

    Sec. 4. REPEALER.
Minnesota Statutes 2010, section 62L.12, subdivisions 3 and 4, are repealed.

    Sec. 5. EFFECTIVE DATE.
This act is effective the day following final enactment.