Bill Text: MN SF33 | 2011-2012 | 87th Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Freedom of Choice in Health Care Act

Spectrum: Moderate Partisan Bill (Republican 4-1)

Status: (Introduced - Dead) 2011-03-03 - Author added Vandeveer [SF33 Detail]

Download: Minnesota-2011-SF33-Engrossed.html

1.1A bill for an act
1.2relating to health; providing a statement of public policy declaring that every
1.3resident of Minnesota has the freedom of choice in health care; making
1.4appropriation adjustments in fiscal years 2010 and 2011;amending Minnesota
1.5Statutes 2010, section 8.31, subdivisions 1, 3a; Laws 2010, First Special Session
1.6chapter 1, article 25, section 3, subdivisions 2, 5, 6, 7; proposing coding for
1.7new law in Minnesota Statutes, chapter 1; repealing Minnesota Statutes 2010,
1.8sections 256B.055, subdivision 15; 256B.0756; Laws 2010, First Special Session
1.9chapter 1, article 16, sections 6; 7; 18; 46; 47.
1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.11    Section 1. [1.06] FREEDOM OF CHOICE IN HEALTH CARE ACT.
1.12    Subdivision 1. Citation. This section shall be known as and may be cited as the
1.13"Freedom of Choice in Health Care Act."
1.14    Subd. 2. Definitions. (a) For purposes of this section, the following terms have
1.15the meaning given them.
1.16(b) "Health care service" means any service, treatment, or provision of a product for
1.17the care of a physical or mental disease, illness, injury, defect, or condition, or to otherwise
1.18maintain or improve physical or mental health, subject to all laws and rules regulating
1.19health service providers and products within the state of Minnesota.
1.20(c) "Mode of securing" means to purchase directly or on credit or by trade, or to
1.21contract for third-party payment by insurance or other legal means as authorized by the
1.22state of Minnesota, or to apply for or accept employer-sponsored or government-sponsored
1.23health care benefits under such conditions as may legally be required as a condition of
1.24such benefits, or any combination of the same.
1.25(d) "Penalty" means any civil or criminal fine, tax, salary or wage withholding,
1.26surcharge, fee, or any other imposed consequence established by law or rule of a
2.1government or its subdivision or agency that is used to punish or discourage the exercise
2.2of rights protected under this section.
2.3    Subd. 3. Statement of public policy. (a) The power to require or regulate a person's
2.4choice in the mode of securing health care services, or to impose a penalty related to that
2.5choice, is not found in the Constitution of the United States of America, and is therefore a
2.6power reserved to the people pursuant to the Ninth Amendment, and to the several states
2.7pursuant to the Tenth Amendment. The state of Minnesota hereby exercises its sovereign
2.8power to declare the public policy of the state of Minnesota regarding the right of all
2.9persons residing in the state in choosing the mode of securing health care services.
2.10(b) It is hereby declared that the public policy of the state of Minnesota, consistent
2.11with our constitutionally recognized and inalienable rights of liberty, is that every person
2.12within the state of Minnesota is and shall be free to choose or decline to choose any mode
2.13of securing health care services without penalty or threat of penalty.
2.14(c) The policy stated under this section shall not be applied to impair any right of
2.15contract related to the provision of health care services to any person or group.
2.16    Subd. 4. Enforcement. (a) No public official, employee, or agent of the state of
2.17Minnesota or any of its political subdivisions shall act to impose, collect, enforce, or
2.18effectuate any penalty in the state of Minnesota that violates the public policy set forth
2.19in this section.
2.20(b) The attorney general shall take any action as is provided in this section or section
2.218.31 in the defense or prosecution of rights protected under this section.

2.22    Sec. 2. Minnesota Statutes 2010, section 8.31, subdivision 1, is amended to read:
2.23    Subdivision 1. Investigate offenses against provisions of certain designated
2.24sections; assist in enforcement. (a) The attorney general shall investigate violations of the
2.25law of this state respecting unfair, discriminatory, and other unlawful practices in business,
2.26commerce, or trade, and specifically, but not exclusively, the Nonprofit Corporation Act
2.27(sections 317A.001 to 317A.909), the Act Against Unfair Discrimination and Competition
2.28(sections 325D.01 to 325D.07), the Unlawful Trade Practices Act (sections 325D.09 to
2.29325D.16), the Antitrust Act (sections 325D.49 to 325D.66), section 325F.67 and other
2.30laws against false or fraudulent advertising, the antidiscrimination acts contained in
2.31section 325D.67, the act against monopolization of food products (section 325D.68),
2.32the act regulating telephone advertising services (section 325E.39), the Prevention of
2.33Consumer Fraud Act (sections 325F.68 to 325F.70), and chapter 53A regulating currency
2.34exchanges and assist in the enforcement of those laws as in this section provided.
3.1(b) The attorney general shall seek injunctive and any other appropriate relief as
3.2expeditiously as possible to preserve the rights and property of the residents of Minnesota,
3.3and to defend as necessary the state of Minnesota, its officials, employees, and agents in
3.4the event that any law or regulation violating the public policy set forth in the Freedom
3.5of Choice in Health Care Act in this section is enacted by any government, subdivision,
3.6or agency thereof.
3.7(c) The attorney general shall seek injunctive and any other appropriate relief
3.8as expeditiously as possible in the event that any law or regulation violating the public
3.9policy set forth in the Freedom of Choice in Health Care Act in this section is enacted
3.10without adequate federal funding to the state to ensure affordable health care coverage
3.11is available to the residents of Minnesota.

3.12    Sec. 3. Minnesota Statutes 2010, section 8.31, subdivision 3a, is amended to read:
3.13    Subd. 3a. Private remedies. In addition to the remedies otherwise provided by law,
3.14any person injured by a violation of any of the laws referred to in subdivision 1 or a
3.15violation of the public policy in section 1.06 may bring a civil action and recover damages,
3.16together with costs and disbursements, including costs of investigation and reasonable
3.17attorney's fees, and receive other equitable relief as determined by the court. The court
3.18may, as appropriate, enter a consent judgment or decree without the finding of illegality.
3.19In any action brought by the attorney general pursuant to this section, the court may award
3.20any of the remedies allowable under this subdivision. An action under this subdivision
3.21for any violation of section 1.06 is in the public interest.

3.22    Sec. 4. Laws 2010, First Special Session chapter 1, article 25, section 3, subdivision 2,
3.23is amended to read:
3.24
Subd. 2.Agency Management
3.25
(a) Financial Operations
-0-
103,000
3.26Base Adjustment. The general fund base is
3.27decreased by $10,000 in fiscal year 2012 and
3.28$10,000 in fiscal year 2013.
3.29
(b) Legal and Regulatory Operations
-0-
114,000
3.30Base Adjustment. The general fund base is
3.31decreased by $18,000 in fiscal year 2012 and
3.32$18,000 in fiscal year 2013.
4.1
(c) (b) Management Operations
-0-
(114,000)
4.2Base Adjustment. The general fund base is
4.3increased by $18,000 in fiscal year 2012 and
4.4$18,000 in fiscal year 2013.
4.5
(d) (c) Information Technology Operations
-0-
(2,500,000)
4.6Base Adjustment. The general fund base is
4.7decreased by $1,666,000 in fiscal year 2012
4.8and $1,666,000 in fiscal year 2013.

4.9    Sec. 5. Laws 2010, First Special Session chapter 1, article 25, section 3, subdivision 5,
4.10is amended to read:
4.11
4.12
Subd. 5.Children and Economic Assistance
Management
4.13
4.14
(a) Children and Economic Assistance
Administration
-0-
-0-
4.15Base Adjustment. The federal TANF fund
4.16base is decreased by $700,000 in fiscal year
4.172012 and $700,000 in fiscal year 2013.
4.18
4.19
(b) Children and Economic Assistance
Operations
-0-
195,000 90,000
4.20Base Adjustment. The general fund base
4.21is decreased increased by $12,000 $93,000
4.22 in fiscal year 2012 and $12,000 $93,000 in
4.23fiscal year 2013.

4.24    Sec. 6. Laws 2010, First Special Session chapter 1, article 25, section 3, subdivision 6,
4.25is amended to read:
4.26
Subd. 6.Health Care Grants
4.27
(a) MinnesotaCare Grants
998,000
(13,376,000)
4.28This appropriation is from the health care
4.29access fund.
4.30Health Care Access Fund Transfer to
4.31General Fund. The commissioner of
4.32management and budget shall transfer
5.1the following amounts in the following
5.2years from the health care access fund to
5.3the general fund: $998,000 in fiscal year
5.42010; $176,704,000 in fiscal year 2011;
5.5$141,041,000 in fiscal year 2012; and
5.6$286,150,000 in fiscal year 2013. If at any
5.7time the governor issues an executive order
5.8not to participate in early medical assistance
5.9expansion, no funds shall be transferred from
5.10the health care access fund to the general
5.11fund until early medical assistance expansion
5.12takes effect. This paragraph is effective the
5.13day following final enactment.
5.14MinnesotaCare Ratable Reduction.
5.15Effective for services rendered on or after
5.16July 1, 2010, to December 31, 2013,
5.17MinnesotaCare payments to managed care
5.18plans under Minnesota Statutes, section
5.19256L.12 , for single adults and households
5.20without children whose income is greater
5.21than 75 percent of federal poverty guidelines
5.22shall be reduced by 15 percent. Effective
5.23for services provided from July 1, 2010, to
5.24June 30, 2011, this reduction shall apply to
5.25all services. Effective for services provided
5.26from July 1, 2011, to December 31, 2013, this
5.27reduction shall apply to all services except
5.28inpatient hospital services. Notwithstanding
5.29any contrary provision of this article, this
5.30paragraph shall expire on December 31,
5.312013.
5.32
5.33
(b) Medical Assistance Basic Health Care
Grants - Families and Children
-0-
295,512,000
5.34Critical Access Dental. Of the general
5.35fund appropriation, $731,000 in fiscal year
5.362011 is to the commissioner for critical
6.1access dental provider reimbursement
6.2payments under Minnesota Statutes, section
6.3256B.76 subdivision 4. This is a onetime
6.4appropriation.
6.5Nonadministrative Rate Reduction. For
6.6services rendered on or after July 1, 2010,
6.7to December 31, 2013, the commissioner
6.8shall reduce contract rates paid to managed
6.9care plans under Minnesota Statutes,
6.10sections 256B.69 and 256L.12, and to
6.11county-based purchasing plans under
6.12Minnesota Statutes, section 256B.692, by
6.13three percent of the contract rate attributable
6.14to nonadministrative services in effect on
6.15June 30, 2010. Notwithstanding any contrary
6.16provision in this article, this rider expires on
6.17December 31, 2013.
6.18
6.19
(c) Medical Assistance Basic Health Care
Grants - Elderly and Disabled
-0-
(30,265,000)
6.20
(d) General Assistance Medical Care Grants
-0-
(75,389,000)
6.21
(e) Other Health Care Grants
-0-
(7,000,000)
6.22Cobra Carryforward. Unexpended funds
6.23appropriated in fiscal year 2010 for COBRA
6.24grants under Laws 2009, chapter 79, article
6.255, section 78, do not cancel and are available
6.26to the commissioner for fiscal year 2011
6.27COBRA grant expenditures. Up to $111,000
6.28of the fiscal year 2011 appropriation for
6.29COBRA grants provided in Laws 2009,
6.30chapter 79, article 13, section 3, subdivision
6.316, may be used by the commissioner for costs
6.32related to administration of the COBRA
6.33grants.

7.1    Sec. 7. Laws 2010, First Special Session chapter 1, article 25, section 3, subdivision 7,
7.2is amended to read:
7.3
Subd. 7.Health Care Management
7.4
(a) Health Care Administration
-0-
391,000 224,000
7.5Fiscal Note Report. Of this appropriation,
7.6$50,000 in fiscal year 2011 is for a transfer to
7.7the commissioner of Minnesota Management
7.8and Budget for the completion of the human
7.9services fiscal note report in article 5.
7.10PACE Implementation Funding. For fiscal
7.11year 2011, $145,000 is appropriated from
7.12the general fund to the commissioner of
7.13human services to complete the actuarial and
7.14administrative work necessary to begin the
7.15operation of PACE under Minnesota Statutes,
7.16section 256B.69, subdivision 23, paragraph
7.17(e). Base level funding for this activity shall
7.18be $130,000 in fiscal year 2012 and $0 in
7.19fiscal year 2013.
7.20Minnesota Senior Health Options
7.21Reimbursement. Effective July 1, 2011,
7.22federal administrative reimbursement
7.23resulting from the Minnesota senior
7.24health options project is appropriated
7.25to the commissioner for this activity.
7.26Notwithstanding any contrary provision, this
7.27provision expires June 30, 2013.
7.28Utilization Review. Effective July 1,
7.292011, federal administrative reimbursement
7.30resulting from prior authorization and
7.31inpatient admission certification by a
7.32professional review organization shall be
7.33dedicated to, and is appropriated to, the
7.34commissioner for these activities. A portion
7.35of these funds must be used for activities
8.1to decrease unnecessary pharmaceutical
8.2costs in medical assistance. Notwithstanding
8.3any contrary provision of this article, this
8.4paragraph expires June 30, 2013.
8.5Certified Public Expenditures. (1) The
8.6entities named in Minnesota Statutes, section
8.7256B.199 , paragraph (b), clause (1), shall
8.8comply with the requirements of that statute
8.9by promptly reporting on a quarterly basis
8.10certified public expenditures that may qualify
8.11for federal matching funds. Reporting under
8.12this paragraph shall be voluntary from July 1,
8.132010, to December 31, 2010. Upon federal
8.14enactment of an extension to June 30, 2011,
8.15of the enhanced federal medical assistance
8.16percentage (FMAP) originally provided
8.17under Public Law 111-5, reporting under
8.18this paragraph shall also be voluntary from
8.19January 1, 2011, to June 30, 2011.
8.20(2) To the extent that certified public
8.21expenditures reported in compliance
8.22with paragraph (1) earn federal matching
8.23payments that exceed $8,079,000 in fiscal
8.24year 2012 and $18,316,000 in fiscal year
8.252013, the excess amount shall be deposited
8.26in the health care access fund. For each fiscal
8.27year after fiscal year 2013, the commissioner
8.28shall forecast in November the amount
8.29of federal payments anticipated to match
8.30certified public expenditures reported in
8.31compliance with paragraph (a). Any federal
8.32match earned in a fiscal year in excess of
8.33the amount forecasted in November shall be
8.34deposited to the health care access fund.
9.1(3) Notwithstanding any contrary provision
9.2of this article, this rider shall not expire.
9.3Poverty Guidelines. Notwithstanding
9.4Minnesota Statutes, sections 256B.56,
9.5subdivision 1c
; 256D.03, subdivision 3;
9.6or 256L.04, subdivision 7b, the poverty
9.7guidelines for medical assistance, general
9.8assistance medical care, and MinnesotaCare
9.9from July 1, 2010, through June 30, 2011,
9.10shall not be lower than the poverty guidelines
9.11issued by the Secretary of Health and Human
9.12Services on January 23, 2009. This section
9.13shall have no effect on the revision of poverty
9.14guidelines for the Minnesota health care
9.15programs that would be in effect starting on
9.16July 1, 2011. This paragraph is effective the
9.17day following final enactment.
9.18Base Adjustment. The general fund base
9.19is decreased by $222,000 $55,000 in fiscal
9.20year 2012 and $352,000 $185,000 in fiscal
9.21year 2013.
9.22
(b) Health Care Operations
9.23
Appropriations by Fund
9.24
9.25
General
-0-
186,000
27,000
9.26
9.27
Health Care Access
-0-
218,000
291,000
9.28The general fund appropriation is a onetime
9.29appropriation in fiscal year 2011.
9.30Base Adjustment. The health care access
9.31fund base for health care operations is
9.32decreased by $812,000 $280,000 in fiscal
9.33year 2012 and $944,000 $274,000 in fiscal
9.34year 2013.

9.35    Sec. 8. REPEALER.
10.1(a) Minnesota Statutes 2010, sections 256B.055, subdivision 15; and 256B.0756, are
10.2repealed.
10.3(b) Laws 2010, First Special Session chapter 1, article 16, sections 6; 7; 18; 46;
10.4and 47, are repealed.
10.5EFFECTIVE DATE.This section is effective February 28, 2011.
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