Bill Text: MN SF2313 | 2011-2012 | 87th Legislature | Engrossed
Bill Title: Unified personal health premium account authorization
Sponsorship: Partisan Bill (Republican 9)
Status: (Engrossed - Dead) 2012-03-29 - Senate file first reading, referred to Taxes [SF2313 Detail]
Download: Minnesota-2011-SF2313-Engrossed.html
1.2relating to insurance; permitting certain entities to administer unified personal
1.3health premium accounts;amending Minnesota Statutes 2011 Supplement,
1.4section 256L.031, subdivision 4; proposing coding for new law as Minnesota
1.5Statutes, chapter 62V; repealing Minnesota Statutes 2010, section 62L.12,
1.6subdivisions 3, 4.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. [62V.01] DEFINITIONS.
1.9 Subdivision 1. Scope of definitions. For purposes of this act, the terms defined
1.10in this section have the meanings given.
1.11 Subd. 2. Commissioner. "Commissioner" means the commissioner of commerce.
1.12 Subd. 3. Health insurance. "Health insurance" means:
1.13(1) individual health insurance; fully insured or self-insured group health coverage;
1.14and individual and group policies that cover cancer, accidents, critical illness, hospital
1.15confinement/medical bridge, short-term disability, long-term care, individual medical,
1.16and high deductible health plans including those that are compatible with health savings
1.17accounts; and
1.18(2) any other coverages identified under sections 60A.06, subdivision 1, clause
1.19(5)(a); 62Q.01, subdivisions 4a and 6; and 62Q.188.
1.20 Subd. 4. Trustee. "Trustee" means an entity that has trust powers under state or
1.21federal law.
1.22 Subd. 5. Unified personal health premium account or account. "Unified personal
1.23health premium account" or "account" means a trust account created for an individual
1.24account holder or the individual's tax dependents for the purpose of receiving funds from
1.25multiple sources for the payment of, or reimbursement for, health insurance premiums.
2.1 Subd. 6. Unified personal health premium account administrator or
2.2administrator. "Unified personal health premium account administrator" or
2.3"administrator" means an entity that has the authority to administer a unified personal
2.4health premium account.
2.5 Sec. 2. [62V.02] REGISTRATION REQUIRED.
2.6(a) Only a private-sector entity or individual registered with the commissioner as
2.7a unified personal health premium account administrator may administer an account on
2.8behalf of a resident of this state.
2.9(b) To register under this section, a private sector entity or individual must be:
2.10(1) a licensed insurance producer, as defined in section 60K.31, subdivision 6, under
2.11the insurance authority described in section 60K.38, subdivision 1, paragraph (b), clause
2.12(1), (2), or (5);
2.13(2) a licensed vendor of risk management services or entity administering a
2.14self-insurance or insurance plan under section 60A.23, subdivision 8; or
2.15(3) a federally or state-chartered bank or credit union.
2.16(c) An applicant for registration under this section shall pay a fee of $250 for initial
2.17registration and $50 for each three-year renewal.
2.18 Sec. 3. [62V.03] REQUIREMENTS; ADMINISTRATION OF UNIFIED
2.19PERSONAL HEALTH PREMIUM ACCOUNT.
2.20 Subdivision 1. Nature of arrangements. (a) Administrators of a unified personal
2.21health premium account under contract with an employer must conduct business in
2.22accordance with a written contract.
2.23(b) Administrators may conduct business directly with individuals in accordance
2.24with a written agreement.
2.25(c) The written agreement between a unified personal health premium account
2.26administrator and its customer must specify the services to be provided to the customer,
2.27the payment for each service including administrative costs, and the timing and method of
2.28each payment or type of payment.
2.29(d) An administrator may administer unified personal health premium accounts
2.30separately or in conjunction with other employee benefit services, including services
2.31that facilitate and coordinate tax-preferred payments for health care and coverage under
2.32Internal Revenue Code, sections 105, 106, and 125.
2.33(e) An administrator shall create and maintain records of receipts, payments, and
2.34other transactions, sufficient to enable the individual to benefit from tax advantages
3.1available to the individual under Internal Revenue Code, sections 105, 106, 125, and other
3.2relevant sections, and under Minnesota income tax law, for health insurance paid by or on
3.3behalf of the individual. The administrator shall identify and notify the account holder and
3.4contributors of any applicable tax subsidies and tax credits for which the account holder or
3.5contributor qualifies in connection with the account or items paid for through the account.
3.6The records and procedures must be capable of segregating funds to maintain restrictions
3.7on the funds received from contributors.
3.8(f) Individual insurance market products paid for through the account under this
3.9section are not an employer-sponsored plan subject to state or federal group insurance
3.10market requirements.
3.11 Subd. 2. Trust account requirements. (a) Contributions to an individual's account
3.12may be made by the individual, the individual's employer or former employer, the
3.13individual's family members or dependents, charitable organizations, or any other source.
3.14(b) A contributor to the account may restrict the use of funds the contributor
3.15contributes to the payment of premiums for one or more of the types of health insurance
3.16included in section 62V.01, subdivision 3.
3.17(c) A trust created and trustees appointed under this act shall:
3.18(1) have the powers granted under, and shall comply with, the provisions of chapter
3.19501B that are relevant to a trust created for purposes of this act;
3.20(2) allow for financial contributions from multiple sources, including tax-preferred
3.21contributions from employers and non-tax-preferred contributions from individuals or
3.22other sources;
3.23(3) restrict funds to be used exclusively for the benefit of the individual account
3.24holder or the individual's tax dependents;
3.25(4) make funds available for the payment of premiums on any type of health
3.26insurance included in section 62V.01, subdivision 3, from any insurance company, subject
3.27to any restriction under paragraph (b);
3.28(5) grant the unified personal health premium account administrator authority to
3.29direct payments to insurance companies or to reimburse account owners for qualified
3.30health insurance premium expenses;
3.31(6) segregate funds to maintain restrictions on the funds received from contributors;
3.32and
3.33(7) guarantee that funds contributed by an employer will remain available to the
3.34account holder after the account holder's term of employment with the employer ends.
3.35 Sec. 4. [62V.04] COORDINATION WITH HEALTHY MINNESOTA PROGRAM.
4.1The commissioner of human services shall enter into agreements under which
4.2unified personal health premium account administrators may receive defined contributions
4.3under the healthy Minnesota contribution program in accordance with section 256L.031,
4.4for use as subsidies toward payment of premiums for health coverage provided to eligible
4.5individuals who have a trust account for that purpose.
4.6 Sec. 5. Minnesota Statutes 2011 Supplement, section 256L.031, subdivision 4, is
4.7amended to read:
4.8 Subd. 4. Administration by commissioner. (a) The commissioner shall administer
4.9the defined contributions. The commissioner shall:
4.10 (1) calculate and process defined contributions for enrollees; and
4.11 (2) pay the defined contribution amount to personal health premium account
4.12administrators as defined in section 62V.01, health plan companies or the Minnesota
4.13Comprehensive Health Association, as applicable, for enrollee health plan coverage.
4.14(b) Nonpayment of a health plan premium shall result in disenrollment from
4.15MinnesotaCare effective the first day of the calendar month following the calendar month
4.16for which the premium was due. Persons disenrolled for nonpayment or who voluntarily
4.17terminate coverage may not reenroll until four calendar months have elapsed.
4.18 Sec. 6. REPEALER.
4.19Minnesota Statutes 2010, section 62L.12, subdivisions 3 and 4, are repealed.
4.20 Sec. 7. EFFECTIVE DATE.
4.21This act is effective the day following final enactment.
1.3health premium accounts;amending Minnesota Statutes 2011 Supplement,
1.4section 256L.031, subdivision 4; proposing coding for new law as Minnesota
1.5Statutes, chapter 62V; repealing Minnesota Statutes 2010, section 62L.12,
1.6subdivisions 3, 4.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.8 Section 1. [62V.01] DEFINITIONS.
1.9 Subdivision 1. Scope of definitions. For purposes of this act, the terms defined
1.10in this section have the meanings given.
1.11 Subd. 2. Commissioner. "Commissioner" means the commissioner of commerce.
1.12 Subd. 3. Health insurance. "Health insurance" means:
1.13(1) individual health insurance; fully insured or self-insured group health coverage;
1.14and individual and group policies that cover cancer, accidents, critical illness, hospital
1.15confinement/medical bridge, short-term disability, long-term care, individual medical,
1.16and high deductible health plans including those that are compatible with health savings
1.17accounts; and
1.18(2) any other coverages identified under sections 60A.06, subdivision 1, clause
1.19(5)(a); 62Q.01, subdivisions 4a and 6; and 62Q.188.
1.20 Subd. 4. Trustee. "Trustee" means an entity that has trust powers under state or
1.21federal law.
1.22 Subd. 5. Unified personal health premium account or account. "Unified personal
1.23health premium account" or "account" means a trust account created for an individual
1.24account holder or the individual's tax dependents for the purpose of receiving funds from
1.25multiple sources for the payment of, or reimbursement for, health insurance premiums.
2.1 Subd. 6. Unified personal health premium account administrator or
2.2administrator. "Unified personal health premium account administrator" or
2.3"administrator" means an entity that has the authority to administer a unified personal
2.4health premium account.
2.5 Sec. 2. [62V.02] REGISTRATION REQUIRED.
2.6(a) Only a private-sector entity or individual registered with the commissioner as
2.7a unified personal health premium account administrator may administer an account on
2.8behalf of a resident of this state.
2.9(b) To register under this section, a private sector entity or individual must be:
2.10(1) a licensed insurance producer, as defined in section 60K.31, subdivision 6, under
2.11the insurance authority described in section 60K.38, subdivision 1, paragraph (b), clause
2.12(1), (2), or (5);
2.13(2) a licensed vendor of risk management services or entity administering a
2.14self-insurance or insurance plan under section 60A.23, subdivision 8; or
2.15(3) a federally or state-chartered bank or credit union.
2.16(c) An applicant for registration under this section shall pay a fee of $250 for initial
2.17registration and $50 for each three-year renewal.
2.18 Sec. 3. [62V.03] REQUIREMENTS; ADMINISTRATION OF UNIFIED
2.19PERSONAL HEALTH PREMIUM ACCOUNT.
2.20 Subdivision 1. Nature of arrangements. (a) Administrators of a unified personal
2.21health premium account under contract with an employer must conduct business in
2.22accordance with a written contract.
2.23(b) Administrators may conduct business directly with individuals in accordance
2.24with a written agreement.
2.25(c) The written agreement between a unified personal health premium account
2.26administrator and its customer must specify the services to be provided to the customer,
2.27the payment for each service including administrative costs, and the timing and method of
2.28each payment or type of payment.
2.29(d) An administrator may administer unified personal health premium accounts
2.30separately or in conjunction with other employee benefit services, including services
2.31that facilitate and coordinate tax-preferred payments for health care and coverage under
2.32Internal Revenue Code, sections 105, 106, and 125.
2.33(e) An administrator shall create and maintain records of receipts, payments, and
2.34other transactions, sufficient to enable the individual to benefit from tax advantages
3.1available to the individual under Internal Revenue Code, sections 105, 106, 125, and other
3.2relevant sections, and under Minnesota income tax law, for health insurance paid by or on
3.3behalf of the individual. The administrator shall identify and notify the account holder and
3.4contributors of any applicable tax subsidies and tax credits for which the account holder or
3.5contributor qualifies in connection with the account or items paid for through the account.
3.6The records and procedures must be capable of segregating funds to maintain restrictions
3.7on the funds received from contributors.
3.8(f) Individual insurance market products paid for through the account under this
3.9section are not an employer-sponsored plan subject to state or federal group insurance
3.10market requirements.
3.11 Subd. 2. Trust account requirements. (a) Contributions to an individual's account
3.12may be made by the individual, the individual's employer or former employer, the
3.13individual's family members or dependents, charitable organizations, or any other source.
3.14(b) A contributor to the account may restrict the use of funds the contributor
3.15contributes to the payment of premiums for one or more of the types of health insurance
3.16included in section 62V.01, subdivision 3.
3.17(c) A trust created and trustees appointed under this act shall:
3.18(1) have the powers granted under, and shall comply with, the provisions of chapter
3.19501B that are relevant to a trust created for purposes of this act;
3.20(2) allow for financial contributions from multiple sources, including tax-preferred
3.21contributions from employers and non-tax-preferred contributions from individuals or
3.22other sources;
3.23(3) restrict funds to be used exclusively for the benefit of the individual account
3.24holder or the individual's tax dependents;
3.25(4) make funds available for the payment of premiums on any type of health
3.26insurance included in section 62V.01, subdivision 3, from any insurance company, subject
3.27to any restriction under paragraph (b);
3.28(5) grant the unified personal health premium account administrator authority to
3.29direct payments to insurance companies or to reimburse account owners for qualified
3.30health insurance premium expenses;
3.31(6) segregate funds to maintain restrictions on the funds received from contributors;
3.32and
3.33(7) guarantee that funds contributed by an employer will remain available to the
3.34account holder after the account holder's term of employment with the employer ends.
3.35 Sec. 4. [62V.04] COORDINATION WITH HEALTHY MINNESOTA PROGRAM.
4.1The commissioner of human services shall enter into agreements under which
4.2unified personal health premium account administrators may receive defined contributions
4.3under the healthy Minnesota contribution program in accordance with section 256L.031,
4.4for use as subsidies toward payment of premiums for health coverage provided to eligible
4.5individuals who have a trust account for that purpose.
4.6 Sec. 5. Minnesota Statutes 2011 Supplement, section 256L.031, subdivision 4, is
4.7amended to read:
4.8 Subd. 4. Administration by commissioner. (a) The commissioner shall administer
4.9the defined contributions. The commissioner shall:
4.10 (1) calculate and process defined contributions for enrollees; and
4.11 (2) pay the defined contribution amount to personal health premium account
4.12administrators as defined in section 62V.01, health plan companies or the Minnesota
4.13Comprehensive Health Association, as applicable, for enrollee health plan coverage.
4.14(b) Nonpayment of a health plan premium shall result in disenrollment from
4.15MinnesotaCare effective the first day of the calendar month following the calendar month
4.16for which the premium was due. Persons disenrolled for nonpayment or who voluntarily
4.17terminate coverage may not reenroll until four calendar months have elapsed.
4.18 Sec. 6. REPEALER.
4.19Minnesota Statutes 2010, section 62L.12, subdivisions 3 and 4, are repealed.
4.20 Sec. 7. EFFECTIVE DATE.
4.21This act is effective the day following final enactment.
