Bill Text: MN SF950 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Prepaid health plans limits on net income and administrative costs; managed care plan refund requirement
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2011-03-21 - Referred to Health and Human Services [SF950 Detail]
Download: Minnesota-2011-SF950-Introduced.html
1.2relating to human services; transferring certain excess health plan revenues to the
1.3general fund;amending Minnesota Statutes 2010, section 256B.69, by adding a
1.4subdivision.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 256B.69, is amended by adding a
1.7subdivision to read:
1.8 Subd. 5l. Limits on net income and administrative costs. (a) Notwithstanding any
1.9other law to the contrary, the total annual net income received by a managed care plan for
1.10providing covered services under medical assistance or MinnesotaCare must not exceed
1.11six percent of the total annual revenues the plan receives from the program. For purposes
1.12of this paragraph, "net income" means total revenues received by the managed care plan
1.13under the program minus expenses and other adjustments, as required to be defined for
1.14purposes of the managed care plan's annual statement of revenue, expenses, and net
1.15income, prepared using the appropriate National Association of Insurance Commissioners
1.16Blank and related instructions for health maintenance organizations, as required and
1.17amended by Minnesota Rules, part 4685.1940. The managed care plan shall refund any
1.18amounts of net annual income in excess of six percent to the commissioner, no later than
1.19the June 30 that follows the contract year.
1.20(b) For services rendered under paragraph (a), allowable administrative costs for a
1.21managed care plan are the per-enrollee dollar amount allowed in 2010.
1.22(c) For purposes of this subdivision, revenues and net income exclude amounts
1.23derived from or attributable to Medicare-related coverage, as defined under section
1.2462A.3099, subdivision 17.
2.1(d) The commissioner shall deposit 100 percent of savings in costs to the state
2.2achieved under this subdivision to the general fund.
2.3EFFECTIVE DATE.This section is effective the day following final enactment.
1.3general fund;amending Minnesota Statutes 2010, section 256B.69, by adding a
1.4subdivision.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 256B.69, is amended by adding a
1.7subdivision to read:
1.8 Subd. 5l. Limits on net income and administrative costs. (a) Notwithstanding any
1.9other law to the contrary, the total annual net income received by a managed care plan for
1.10providing covered services under medical assistance or MinnesotaCare must not exceed
1.11six percent of the total annual revenues the plan receives from the program. For purposes
1.12of this paragraph, "net income" means total revenues received by the managed care plan
1.13under the program minus expenses and other adjustments, as required to be defined for
1.14purposes of the managed care plan's annual statement of revenue, expenses, and net
1.15income, prepared using the appropriate National Association of Insurance Commissioners
1.16Blank and related instructions for health maintenance organizations, as required and
1.17amended by Minnesota Rules, part 4685.1940. The managed care plan shall refund any
1.18amounts of net annual income in excess of six percent to the commissioner, no later than
1.19the June 30 that follows the contract year.
1.20(b) For services rendered under paragraph (a), allowable administrative costs for a
1.21managed care plan are the per-enrollee dollar amount allowed in 2010.
1.22(c) For purposes of this subdivision, revenues and net income exclude amounts
1.23derived from or attributable to Medicare-related coverage, as defined under section
1.2462A.3099, subdivision 17.
2.1(d) The commissioner shall deposit 100 percent of savings in costs to the state
2.2achieved under this subdivision to the general fund.
2.3EFFECTIVE DATE.This section is effective the day following final enactment.
