Prescription Drug Affordability Advisory Council elminated, nondepository financial institution provisions modified, health plan regulatory alignment provided, duties transferred, premium security plan modified, appropriations reduced, and money appropriated.

A bill for an act

relating to commerce; eliminating the Prescription Drug Affordability Advisory

Council; modifying various provisions governing nondepository financial

institutions; providing for health plan regulatory alignment; transferring duties

and employees; modifying the premium security plan; appropriating money and

making reductions; requiring reports; amending Minnesota Statutes 2024, sections

47.20, subdivision 1; 47.59, subdivision 1; 47.60, subdivision 1; 53.04, subdivision

3a; 53B.74; 53C.09, subdivision 4; 56.002; 56.01; 56.05; 58.06, subdivision 2;

58B.051; 60A.50, subdivisions 1, 3; 60A.951, subdivision 3; 60A.985, subdivision

8; 60A.9853, subdivision 1; 60A.9854; 60B.03, subdivision 2; 60G.01, subdivisions

2, 4; 62A.02, subdivision 8; 62A.021, subdivision 1; 62A.61; 62A.65, subdivisions

7, 8; 62D.08, subdivisions 1, 2, 3, 7, by adding a subdivision; 62D.12, subdivision

1; 62D.124, subdivision 5; 62D.221, subdivisions 1, 2; 62E.11, subdivisions 9,

13; 62E.23, subdivision 1; 62J.40; 62J.60, subdivision 5; 62J.89, subdivisions 1,

2; 62J.90, subdivision 2; 62K.07, subdivision 2; 62L.02, subdivision 8; 62L.08,

subdivision 11; 62L.09, subdivision 3; 62L.10, subdivision 4; 62L.11, subdivision

2; 62M.11; 62Q.01, subdivision 2; 62Q.106; 62Q.188, subdivision 2; 62Q.37,

subdivision 2; 62Q.47; 62Q.51, subdivision 3; 62Q.556, subdivisions 3, 4; 62Q.69,

subdivisions 2, 3; 62Q.71; 62Q.73, subdivisions 3, 10; 62Q.81, subdivision 7;

62U.04, subdivision 13; 62W.06, by adding a subdivision; 332.52, subdivision 3;

332A.04, subdivision 1; 332B.04, subdivision 1; Minnesota Statutes 2025

Supplement, sections 62D.21; 62D.211; 62E.23, subdivisions 1a, 2; 297I.20,

subdivision 7; proposing coding for new law in Minnesota Statutes, chapters 60A;

62D; repealing Minnesota Statutes 2024, sections 56.08; 62J.86, subdivision 2;

62J.88; 332A.02, subdivision 2; 332B.02, subdivision 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

COMMERCE FINANCE

Section 1.
new text begin
HEALTH MAINTENANCE ORGANIZATIONS AND COUNTY-BASED

PURCHASERS REGULATION; APPROPRIATION.
new text end

new text begin

$1,750,000 in fiscal year 2027 is appropriated from the general fund to the commissioner

of commerce to regulate health maintenance organizations and county-based purchasers.

new text end

Sec. 2.
new text begin
APPROPRIATION REDUCTION.
new text end

new text begin

The commissioner of management and budget must reduce the Department of Health's

fiscal year 2027 general fund appropriation by $1,750,000 and must reduce the Department

of Health's fiscal year 2027 state government special revenue fund appropriation by

$1,836,000 to account for the transfer of health maintenance organization and county-based

purchaser regulatory responsibilities to the commissioner of commerce. These reductions

are ongoing.

new text end

ARTICLE 2

PRESCRIPTION DRUG AFFORDABILITY ADVISORY COUNCIL

Section 1.

Minnesota Statutes 2024, section 62J.89, subdivision 1, is amended to read:

Subdivision 1.

Definition.

For purposes of this section, "conflict of interest" means a

financial or personal association that has the potential to bias or have the appearance of

biasing a person's decisions in matters related to the board
deleted text begin
, the advisory council,
deleted text end
or in the

conduct of the board's
deleted text begin
or council's
deleted text end
activities. A conflict of interest includes any instance in

which a person, a person's immediate family member, including a spouse, parent, child, or

other legal dependent, or an in-law of any of the preceding individuals, has received or

could receive a direct or indirect financial benefit of any amount deriving from the result

or findings of a decision or determination of the board. For purposes of this section, a

financial benefit includes honoraria, fees, stock, the value of the member's, immediate family

member's, or in-law's stock holdings, and any direct financial benefit deriving from the

finding of a review conducted under sections
62J.85
to
62J.95
. Ownership of securities is

not a conflict of interest if the securities are: (1) part of a diversified mutual or exchange

traded fund; or (2) in a tax-deferred or tax-exempt retirement account that is administered

by an independent trustee.

Sec. 2.

Minnesota Statutes 2024, section 62J.89, subdivision 2, is amended to read:

Subd. 2.

General.

(a) Prior to the acceptance of an appointment or employment, or prior

to entering into a contractual agreement, a board
deleted text begin
or advisory council
deleted text end
member, board staff

member, or third-party contractor must disclose to the appointing authority or the board

any conflicts of interest. The information disclosed must include the type, nature, and

magnitude of the interests involved.

(b) A board member, board staff member, or third-party contractor with a conflict of

interest with regard to any prescription drug product under review must recuse themselves

from any discussion, review, decision, or determination made by the board relating to the

prescription drug product.

(c) Any conflict of interest must be disclosed in advance of the first meeting after the

conflict is identified or within five days after the conflict is identified, whichever is earlier.

Sec. 3.

Minnesota Statutes 2024, section 62J.90, subdivision 2, is amended to read:

Subd. 2.

Identification of certain prescription drug products.

(a) The board
deleted text begin
, in

consultation with the advisory council, shall
deleted text end
new text begin
must
new text end
identify selected prescription drug products

based on the following criteria:

(1) brand name drugs or biologics for which the WAC increases by more than 15 percent

or by more than $3,000 during any 12-month period or course of treatment if less than 12

months, after adjusting for changes in the consumer price index (CPI);

(2) brand name drugs or biologics with a WAC of $60,000 or more per calendar year

or per course of treatment;

(3) biosimilar drugs that have a WAC that is not at least 20 percent lower than the

referenced brand name biologic at the time the biosimilar is introduced; and

(4) generic drugs for which the WAC:

(i) is $100 or more, after adjusting for changes in the CPI, for:

(A) a 30-day supply;

(B) a course of treatment lasting less than 30 days; or

(C) one unit of the drug, if the labeling approved by the Food and Drug Administration

does not recommend a finite dosage; and

(ii) increased by 200 percent or more during the immediate preceding 12-month period,

as determined by the difference between the resulting WAC and the average WAC reported

over the preceding 12 months, after adjusting for changes in the CPI.

The board is not required to identify all prescription drug products that meet the criteria in

this paragraph.

(b) The board, in consultation with
deleted text begin
the advisory council and
deleted text end
the commissioner of health,

may identify prescription drug products not described in paragraph (a) that may impose

costs that create significant affordability challenges for the state health care system or for

patients, including but not limited to drugs to address public health emergencies.

(c) The board shall make available to the public the names and related price information

of the prescription drug products identified under this subdivision, with the exception of

information determined by the board to be proprietary under the standards developed by

the board under section
62J.91, subdivision 3
, and information provided by the commissioner

of health classified as not public data under section
13.02, subdivision 8a
, or as trade secret

information under section
13.37, subdivision 1
, paragraph (b), or as trade secret information

under the Defend Trade Secrets Act of 2016, United States Code, title 18, section 1836, as

amended.

Sec. 4.
new text begin
REPEALER.
new text end

new text begin

Minnesota Statutes 2024, sections 62J.86, subdivision 2; and 62J.88,

new text end

new text begin

are repealed.

new text end

ARTICLE 3

NON-DEPOSITORY INSTITUTIONS

Section 1.

Minnesota Statutes 2024, section 47.20, subdivision 1, is amended to read:

Subdivision 1.

General authority.

Pursuant to rules the commissioner of commerce

finds to be necessary and proper, if any, banks, savings banks, and savings associations

organized under the laws of this state or the United States, trust companies, trust companies

acting as fiduciaries, and other banking institutions subject to the supervision of the

commissioner of commerce,
new text begin
including residential mortgage originators and servicers under

chapter 58,
new text end
and mortgagees or lenders approved or certified by the secretary of housing and

urban development or approved or certified by the administrator of veterans affairs, or

approved or certified by the administrator of the Farmers Home Administration or any

successor, or approved or certified by the Federal Home Loan Mortgage Corporation, or

approved or certified by the Federal National Mortgage Association, are authorized:

(1) to make loans and advances of credit and purchases of obligations representing loans

and advances of credit which are insured or guaranteed by the secretary of housing and

urban development pursuant to the National Housing Act, as amended, or the administrator

of veterans affairs pursuant to the Servicemen's Readjustment Act of 1944, as amended, or

the administrator of the Farmers Home Administration or any successor pursuant to the

Consolidated Farm and Rural Development Act, Public Law 87-128, as amended, and to

obtain the insurance or guarantees;

(2) to make loans secured by mortgages on real property and loans secured by a share

or shares of stock or a membership certificate or certificates issued to a stockholder or

member by a cooperative apartment corporation which the secretary of housing and urban

development, the administrator of veterans affairs, or the administrator of the Farmers Home

Administration or any successor has insured or guaranteed or made a commitment to insure

or guarantee, and to obtain the insurance or guarantees;

(3) to make, purchase, or participate in such loans and advances of credit; including

reverse mortgage loans, notwithstanding anything in subdivision 4b, sections
47.58
and

334.01
, and chapter 56
new text begin
or 58
new text end
to the contrary; as would be eligible for purchase, in whole or

in part, by the Federal National Mortgage Association or the Federal Home Loan Mortgage

Corporation, but without regard to any limitation placed upon the maximum principal amount

of an eligible loan;
new text begin
and
new text end

(4) to make, purchase or participate in such loans and advances of credit secured by

mortgages on real property which are authorized or allowed by the Office of Thrift

Supervision or the Office of the Comptroller of the Currency, or any successor to these

federal agencies.

Sec. 2.

Minnesota Statutes 2024, section 47.59, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For purposes of this section, the following definitions shall

apply.

(a) "Actuarial method" has the meaning given the term in Code of Federal Regulations,

title 12, part 226, and appendix J thereto.

(b) "Annual percentage rate" has the meaning given the term in Code of Federal

Regulations, title 12, part 226, but using the definition of "finance charge" used in this

section.

(c) "Borrower" means a debtor under a loan or a purchaser or debtor under a credit sale

contract.

(d) "Business purpose" means a purpose other than a personal, family, household, or

agricultural purpose.

(e) "Cardholder" means a person to whom a credit card is issued or who has agreed with

the financial institution to pay obligations arising from the issuance to or use of the card by

another person.

(f) "Consumer loan" means a loan made by a financial institution in which:

(1) the debtor is a person other than an organization;

(2) the debt is incurred primarily for a personal, family, or household purpose; and

(3) the debt is payable in installments or a finance charge is made.

(g) "Credit" means the right granted by a financial institution to a borrower to defer

payment of a debt, to incur debt and defer its payment, or to purchase property or services

and defer payment.

(h) "Credit card" means a card or device issued under an arrangement pursuant to which

a financial institution gives to a cardholder the privilege of obtaining credit from the financial

institution or other person in purchasing or leasing property or services, obtaining loans, or

otherwise. A transaction is "pursuant to a credit card" only if credit is obtained according

to the terms of the arrangement by transmitting information contained on the card or device

orally, in writing, by mechanical or electronic methods, or in any other manner. A transaction

is not "pursuant to a credit card" if the card or device is used solely in that transaction to:

(1) identify the cardholder or evidence the cardholder's creditworthiness and credit is

not obtained according to the terms of the arrangement;

(2) obtain a guarantee of payment from the cardholder's deposit account, whether or not

the payment results in a credit extension to the cardholder by the financial institution; or

(3) effect an immediate transfer of funds from the cardholder's deposit account by

electronic or other means, whether or not the transfer results in a credit extension to the

cardholder by the financial institution.

(i) "Credit sale contract" means a contract evidencing a credit sale. "Credit sale" means

a sale of goods or services, or an interest in land, in which:

(1) credit is granted by a seller who regularly engages as a seller in credit transactions

of the same kind; and

(2) the debt is payable in installments or a finance charge is made.

(j) "Finance charge" has the meaning given in Code of Federal Regulations, title 12, part

226, except that the following will not in any event be considered a finance charge:

(1) a charge as a result of default or delinquency under subdivision 6 if made for actual

unanticipated late payment, delinquency, default, or other similar occurrence, and a charge

made for an extension or deferment under subdivision 5, unless the parties agree that these

charges are finance charges;

(2) an additional charge under subdivision 6;

(3) a discount, if a financial institution purchases a loan at less than the face amount of

the obligation or purchases or satisfies obligations of a cardholder pursuant to a credit card

and the purchase or satisfaction is made at less than the face amount of the obligation;

(4) fees paid by a borrower to a broker, provided the financial institution or a person

described in subdivision 4 does not require use of the broker to obtain credit; or

(5) a commission, expense reimbursement, or other sum received by a financial institution

or a person described in subdivision 4 in connection with insurance described in subdivision

6.

(k) "Financial institution" means a state or federally chartered bank, a state or federally

chartered bank and trust, a trust company with banking powers, a state or federally chartered

saving bank, a state or federally chartered savings association, an industrial loan and thrift

company organized under chapter 53,
new text begin
a sales finance company organized under chapter

53C,
new text end
a regulated lender organized under chapter 56,
new text begin
a mortgage originator or servicer

licensed under chapter 58,
new text end
or an operating subsidiary of any such institution.

(l) "Loan" means:

(1) the creation of debt by the financial institution's payment of money to the borrower

or a third person for the account of the borrower;

(2) the creation of debt pursuant to a credit card in any manner, including a cash advance

or the financial institution's honoring a draft or similar order for the payment of money

drawn or accepted by the borrower, paying or agreeing to pay the borrower's obligation, or

purchasing or otherwise acquiring the borrower's obligation from the obligee or the borrower's

assignee;

(3) the creation of debt by a cash advance to a borrower pursuant to an overdraft line of

credit arrangement;

(4) the creation of debt by a credit to an account with the financial institution upon which

the borrower is entitled to draw immediately;

(5) the forbearance of debt arising from a loan; and

(6) the creation of debt pursuant to open-end credit.

"Loan" does not include the forbearance of debt arising from a sale or lease, a credit

sale contract, or an overdraft from a person's deposit account with a financial institution

which is not pursuant to a written agreement to pay overdrafts with the right to defer

repayment thereof.

(m) "Official fees" means:

(1) fees and charges which actually are or will be paid to public officials for determining

the existence of or for perfecting, releasing, terminating, or satisfying a security interest or

mortgage relating to a loan or credit sale, and any separate fees or charges which actually

are or will be paid to public officials for recording a notice described in section
580.032,

subdivision 1
; and

(2) premiums payable for insurance in lieu of perfecting a security interest or mortgage

otherwise required by a financial institution in connection with a loan or credit sale, if the

premium does not exceed the fees and charges described in clause (1), which would otherwise

be payable.

(n) "Organization" means a corporation, government, government subdivision or agency,

trust, estate, partnership, joint venture, cooperative, limited liability company, limited

liability partnership, or association.

(o) "Person" means a natural person or an organization.

(p) "Principal" means the total of:

(1) the amount paid to, received by, or paid or repayable for the account of, the borrower;

and

(2) to the extent that payment is deferred:

(i) the amount actually paid or to be paid by the financial institution for additional charges

permitted under this section; and

(ii) prepaid finance charges.

Sec. 3.

Minnesota Statutes 2024, section 47.60, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For purposes of this section, the terms defined have the

meanings given them:

(a) "Consumer small loan" is a loan transaction in which cash is advanced to a borrower

for the borrower's own personal, family, or household purpose. A consumer small loan is

a short-term, unsecured loan to be repaid in a single installment. The cash advance of a

consumer small loan is equal to or less than $350. A consumer small loan includes an

indebtedness evidenced by but not limited to a promissory note or agreement to defer the

presentation of a personal check for a fee.

(b) "Consumer small loan lender" is a financial institution as defined in section
47.59

or a business entity registered with the commissioner and engaged in the business of making
new text begin

or arranging
new text end
consumer small loans.
new text begin
For purposes of this paragraph, arranging a consumer

small loan includes but is not limited to any substantial involvement to facilitate, market,

generate leads for, underwrite, or collect a consumer small loan.
new text end

(c) "Annual percentage rate" means a measure of the cost of credit, expressed as a yearly

rate, that relates the amount and timing of value received by the consumer to the amount

and timing of payments made. Annual percentage rate includes all interest, finance charges,

and fees. The annual percentage rate must be determined in accordance with either the

actuarial method or the United States Rule method.

Sec. 4.

Minnesota Statutes 2024, section 53.04, subdivision 3a, is amended to read:

Subd. 3a.

Loans.

(a) The right to make loans, secured or unsecured, at the rates and on

the terms and other conditions permitted under chapters
47
and
334
. Loans made under this

authority must be in amounts in compliance with section
53.05
, clause (7). A licensee making

a loan under this chapter secured by a lien on real estate shall comply with the requirements

of section
47.20, subdivision 8
. A licensee making a loan that is a consumer small loan, as

defined in section
47.60, subdivision 1
, paragraph (a), must comply with section
47.60
. A

licensee making a loan that is a consumer short-term loan, as defined in section
47.601
,

subdivision 1, paragraph
deleted text begin
(d)
deleted text end
new text begin
(e)
new text end
, must comply with section
47.601
.

(b) Loans made under this subdivision may be secured by real or personal property, or

both. If the proceeds of a loan secured by a first lien on the borrower's primary residence

are used to finance the purchase of the borrower's primary residence, the loan must comply

with the provisions of section
47.20
.

(c) An agency or instrumentality of the United States government or a corporation

otherwise created by an act of the United States Congress or a lender approved or certified

by the secretary of housing and urban development, or approved or certified by the

administrator of veterans affairs, or approved or certified by the administrator of the Farmers

Home Administration, or approved or certified by the Federal Home Loan Mortgage

Corporation, or approved or certified by the Federal National Mortgage Association, that

engages in the business of purchasing or taking assignments of mortgage loans and undertakes

direct collection of payments from or enforcement of rights against borrowers arising from

mortgage loans, is not required to obtain a certificate of authorization under this chapter in

order to purchase or take assignments of mortgage loans from persons holding a certificate

of authorization under this chapter.

(d) This subdivision does not authorize an industrial loan and thrift company to make

loans under an overdraft checking plan.

Sec. 5.

Minnesota Statutes 2024, section 53B.74, is amended to read:

53B.74 VIRTUAL CURRENCY BUSINESS ACTIVITIES; ADDITIONAL

REQUIREMENTS.

(a) A licensee engaged in virtual currency business activities
deleted text begin
may include virtual currency

in the licensee's calculation of tangible net worth, by measuring the average value of the

virtual currency in United States dollar equivalent over the prior six months, excluding

control of virtual currency for a person entitled to the protections under section
53B.73
.
deleted text end
new text begin
is

not required to subtract virtual currency from total assets in the licensee's calculation of

tangible net worth if:
new text end

new text begin

(1) the licensee's day-to-day business includes incurring obligations to customers

denominated in the virtual currency;

new text end

new text begin

(2) the virtual currency asset has a corresponding liability denominated in the virtual

currency;

new text end

new text begin

(3) the virtual currency is unencumbered; and

new text end

new text begin

(4) the virtual currency assets that are not subtracted from total assets are limited to the

virtual currency assets that have a corresponding liability denominated in the same virtual

currency.

new text end

(b) A licensee must maintain, for all virtual-currency business activity with or on behalf

of a person five years after the date of the activity, a record of:

(1) each of the licensee's transactions with or on behalf of the person, or for the licensee's

account in Minnesota, including:

(i) the identity of the person;

(ii) the form of the transaction;

(iii) the amount, date, and payment instructions given by the person; and

(iv) the account number, name, and United States Postal Service address of the person,

and, to the extent feasible, other parties to the transaction;

(2) the aggregate number of transactions and aggregate value of transactions by the

licensee with or on behalf of the person and for the licensee's account in this state, expressed

in the United States dollar equivalent of the virtual currency for the previous 12 calendar

months;

(3) each transaction in which the licensee exchanges one form of virtual currency for

money or another form of virtual currency with or on behalf of the person;

(4) a general ledger posted at least monthly that lists all of the licensee's assets, liabilities,

capital, income, and expenses;

(5) each business-call report the licensee is required to create or provide to the department

or NMLS;

(6) bank statements and bank reconciliation records for the licensee and the name,

account number, and United States Postal Service address of each bank the licensee uses

to conduct virtual-currency business activity with or on behalf of the person;

(7) a report of any dispute with the person; and

(8) a report of any virtual-currency business activity transaction with or on behalf of a

person which the licensee was unable to complete.

(c) A licensee must maintain records required by paragraph (b) in a form that enables

the commissioner to determine whether the licensee is in compliance with this chapter, any

court order, and law of Minnesota other than this chapter.

Sec. 6.

Minnesota Statutes 2024, section 53C.09, subdivision 4, is amended to read:

Subd. 4.

Other law may apply.

In lieu of this section and sections
53C.01, subdivisions

2, 4, and 13
;
53C.08
;
53C.10
; and
53C.11
, a retail seller
new text begin
or sales finance company
new text end
may

proceed under section
47.59

deleted text begin
relating to credit sales made by a third party
deleted text end
new text begin
, subdivisions 4,

4a, and 6
new text end
. In cases where the retail seller
new text begin
or sales finance company
new text end
proceeds under section

47.59
, the remaining provisions of sections
53C.01
to
53C.14
apply notwithstanding section

47.59
.

Sec. 7.

Minnesota Statutes 2024, section 56.002, is amended to read:

56.002 APPLICATION.

This chapter does not apply to a person doing business under and as permitted by any

law of this state or of the United States relating to banks, savings associations, trust

companies, licensed pawnbrokers,
new text begin
a residential mortgage originator or servicer licensed

under chapter 58 that offers residential mortgage origination services or residential mortgage

servicing,
new text end
or credit unions. Notwithstanding the provisions of section
56.01
, an industrial

loan and thrift company under chapter 53 may contract for and receive the charges, including

those in section
56.155
, authorized by this chapter without being licensed pursuant to this

chapter, but shall comply with all other provisions of this chapter when contracting for or

receiving charges on loans regulated by this chapter.

Sec. 8.

Minnesota Statutes 2024, section 56.01, is amended to read:

56.01 NECESSITY OF LICENSE.

(a) Except as authorized by this chapter and without first obtaining a license from the

commissioner, no person shall engage in the business of making loans of money, credit,

goods, or things in action, in an amount or of a value not exceeding that specified in section

56.131, subdivision 1
, and charge, contract for, or receive on the loan a greater rate of

interest, discount, or consideration than the lender would be permitted by law to charge if

not a licensee under this chapter.
new text begin
A person must obtain a license from the commissioner

under this chapter before arranging a consumer short-term loan under section 47.601.
new text end

(b) An agency or instrumentality of the United States government or a corporation

otherwise created by an act of the United States Congress or a lender approved or certified

by the secretary of housing and urban development, or approved or certified by the

administrator of veterans affairs, or approved or certified by the administrator of the Farmers

Home Administration, or approved or certified by the Federal Home Loan Mortgage

Corporation, or approved or certified by the Federal National Mortgage Association, that

engages in the business of purchasing or taking assignments of mortgage loans and undertakes

direct collection of payments from or enforcement of rights against borrowers arising from

mortgage loans, is not required to be licensed under this chapter in order to purchase or take

assignments of mortgage loans from licensees under this chapter.

Sec. 9.

Minnesota Statutes 2024, section 56.05, is amended to read:

56.05 LICENSE; TO BE POSTED.

new text begin

(a)
new text end
The license shall state the address at which the business is to be conducted and shall

state fully the name of the licensee, and if the licensee is a copartnership or association, the

names of the members thereof, and if a corporation, the date and place of its incorporation.

new text begin

(b)
new text end
The license shall be kept conspicuously posted in the place of business of the licensee,

and shall not be transferable or assignable.
new text begin
For a licensee that offers service via the Internet,

the license number must be clearly displayed on each web page or other document required

by an order issued by the commissioner.
new text end

Sec. 10.

Minnesota Statutes 2024, section 58.06, subdivision 2, is amended to read:

Subd. 2.

Application contents.

(a) The application must contain the name and complete

business address or addresses of the license applicant. The license applicant must be a

partnership, limited liability partnership, association, limited liability company, corporation,

or other form of business organization, and the application must contain the names and

complete business addresses of each partner, member, director, and principal officer. The

application must also include a description of the activities of the license applicant, in the

detail and for the periods the commissioner may require.

(b)
deleted text begin
A residential mortgage originator
deleted text end
new text begin
An
new text end
applicant must submit a surety bond that meets

the requirements of section
58.08, subdivision 1a
.

(c) The application must also include all of the following:

(1) an affirmation under oath that the applicant:

(i) is in compliance with the requirements of section
58.125
;

(ii) will advise the commissioner of any material changes to the information submitted

in the most recent application within ten days of the change;

(iii) will advise the commissioner in writing immediately of any bankruptcy petitions

filed against or by the applicant or licensee;

(iv) will maintain at all times a surety bond in the amount of at least
deleted text begin
$100,000
deleted text end
new text begin
$125,000
new text end
;

(v) complies with federal and state tax laws; and

(vi) complies with sections
345.31
to
345.60
, the Minnesota unclaimed property law;

(2) information as to the mortgage lending, servicing, or brokering experience of the

applicant and persons in control of the applicant;

(3) information as to criminal convictions, excluding traffic violations, of persons in

control of the license applicant;

(4) whether a court of competent jurisdiction has found that the applicant or persons in

control of the applicant have engaged in conduct evidencing gross negligence, fraud,

misrepresentation, or deceit in performing an act for which a license is required under this

chapter;

(5) whether the applicant or persons in control of the applicant have been the subject of:

an order of suspension or revocation, cease and desist order, or injunctive order, or order

barring involvement in an industry or profession issued by this or another state or federal

regulatory agency or by the Secretary of Housing and Urban Development within the ten-year

period immediately preceding submission of the application; and

(6) other information required by the commissioner.

Sec. 11.

Minnesota Statutes 2024, section 58B.051, is amended to read:

58B.051 REGISTRATION FOR LENDERS.

(a) Beginning January 1, 2025, a lender must register with the commissioner as a lender

before providing services in Minnesota. A lender must not offer or make a student loan to

a resident of Minnesota without first registering with the commissioner as provided in this

section.

(b) A registration application must include:

(1) the lender's name;

(2) the lender's address;

(3) the names of all officers, directors, owners, or other persons in control of an applicant,

as defined in section
58B.02, subdivision 6
; and

(4) any other information the commissioner requires
deleted text begin
by rule
deleted text end
.

(c) Registration issued or renewed expires December 31 of each year. A lender must

renew the lender's registration on an annual basis.

(d) The commissioner may adopt and enforce:

(1) registration procedures for lenders, which may include using the Nationwide

Multistate Licensing System and Registry;

(2) nonrefundable registration fees for lenders, which may include fees for using the

Nationwide Multistate Licensing System and Registry, to be paid directly by the lender;

(3) procedures and nonrefundable fees to renew a lender's registration, which may include

fees for the renewed use of Nationwide Multistate Licensing System and Registry, to be

paid directly by the lender; and

(4) alternate registration procedures and nonrefundable fees for postsecondary education

institutions that offer student loans.

Sec. 12.

Minnesota Statutes 2024, section 332.52, subdivision 3, is amended to read:

Subd. 3.

Credit services organization.

(a) "Credit services organization" means any

person that, with respect to the extension of credit by others, sells, provides, performs, or

represents that the person will sell, provide, or perform, in return for the payment of money

or other valuable consideration, any of the following services:

(1) improve a buyer's credit record, history, or rating;

(2) obtain an extension of credit for a buyer; or

(3) provide advice or assistance to a buyer with regard to either clause (1) or (2).

(b) "Credit services organization" does not include:

(1) any person authorized to make loans or extensions of credit under the laws of this

state or the United States, if the person is subject to regulation and supervision by this state

or the United States or a lender approved by the United States Secretary of Housing and

Urban Development for participation in any mortgage insurance program under the National

Housing Act, United States Code, title 12, section 1701 et seq.;

(2) any bank, savings bank, or savings and loan institution whose deposits or accounts

are eligible for insurance by the Federal Deposit Insurance Corporation or a subsidiary of

the bank, savings bank, or savings and loan institution;

(3) any credit union, federal credit union, or out-of-state credit union doing business in

this state;

(4) any nonprofit organization exempt from taxation under section 501(c)(3) of the

Internal Revenue Code of 1986, as amended through December 31, 1990;

(5) any person
deleted text begin
licensed as a prorating agency
deleted text end
new text begin
registered as a debt management services

provider or debt settlement services provider
new text end
under the laws of this state
new text begin
,
new text end
if the person is

acting within the course and scope of
deleted text begin
that license
deleted text end
new text begin
the applicable registration
new text end
;

(6) any person licensed as a real estate broker by this state if the person is acting within

the course and scope of that license;

(7) any person licensed as a collection agency under the laws of this state if the person

is acting within the course and scope of that license;

(8) any person licensed to practice law in this state if the person renders services within

the course and scope of practice as an attorney;

(9) any broker-dealer registered with the Securities and Exchange Commission or the

Commodity Futures Trading Commission if the broker-dealer is acting within the course

and scope of that regulation; or

(10) any consumer reporting agency as defined in the federal Fair Credit Reporting Act,

United States Code, title 15, sections 1681 to 1681t, as amended through December 31,

1990.

Sec. 13.

Minnesota Statutes 2024, section 332A.04, subdivision 1, is amended to read:

Subdivision 1.

Form.

Application for registration to operate as a debt management

services provider in this state must be made in writing to the commissioner, under oath, in

the form prescribed by the commissioner, and must contain:

(1) the full name of each principal of the entity applying;

(2) the address, which must not be a post office box, and the telephone number and, if

applicable, email address, of the applicant;

(3) identification of the trust account required under section
332A.13
;

(4) consent to the jurisdiction of the courts of this state;

(5) the name and address of the registered agent authorized to accept service of process

on behalf of the applicant or appointment of the commissioner as the applicant's agent for

purposes of accepting service of process;

(6) disclosure of:

(i) whether any controlling or affiliated party has ever been convicted of a crime or found

civilly liable for an offense involving moral turpitude, including forgery, embezzlement,

obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or any

other similar offense or violation, or any violation of a federal or state law or regulation in

connection with activities relating to the rendition of debt management services or involving

any consumer fraud, false advertising, deceptive trade practices, or similar consumer

protection law;

(ii) any judgments, private or public litigation, tax liens, written complaints, administrative

actions, or investigations by any government agency against the applicant or any officer,

director, manager, or shareholder owning more than five percent interest in the applicant,

unresolved or otherwise, filed or otherwise commenced within the preceding ten years;

(iii) whether the applicant or any person employed by the applicant has had a record of

having defaulted in the payment of money collected for others, including the discharge of

debts through bankruptcy proceedings; and

(iv) whether the applicant's license or registration to provide debt management services

in any other state has ever been revoked or suspended;

(7) a copy of the applicant's standard debt management services agreement that the

applicant intends to execute with debtors;
new text begin
and
new text end

deleted text begin

(8) proof of accreditation, unless the applicant was licensed in Minnesota as a debt

prorater immediately before August 1, 2007; and

deleted text end

deleted text begin

(9)
deleted text end
new text begin
(8)
new text end
any other information and material as the commissioner may require.

The commissioner may, for good cause shown, temporarily waive any requirement of

this subdivision.

Sec. 14.

Minnesota Statutes 2024, section 332B.04, subdivision 1, is amended to read:

Subdivision 1.

Form.

Application for registration to operate as a debt settlement services

provider in this state must be made in writing to the commissioner, under oath, in the form

prescribed by the commissioner, and must contain:

(1) the full name of each principal of the entity applying;

(2) the address, which must not be a post office box, and the telephone number and, if

applicable, email address of the applicant;

(3) consent to the jurisdiction of the courts of this state;

(4) the name and address of the registered agent authorized to accept service of process

on behalf of the applicant or appointment of the commissioner as the applicant's agent for

purposes of accepting service of process;

(5) disclosure of:

(i) whether any controlling or affiliated party has ever been convicted of a crime or found

civilly liable for an offense involving moral turpitude, including forgery, embezzlement,

obtaining money under false pretenses, larceny, extortion, conspiracy to defraud, or any

other similar offense or violation, or any violation of a federal or state law or regulation in

connection with activities relating to the rendition of debt settlement services or involving

any consumer fraud, false advertising, deceptive trade practices, or similar consumer

protection law;

(ii) any judgments, private or public litigation, tax liens, written complaints, administrative

actions, or investigations by any government agency against the applicant or any officer,

director, manager, or shareholder owning more than five percent interest in the applicant,

unresolved or otherwise, filed or otherwise commenced within the preceding ten years;

(iii) whether the applicant or any person employed by the applicant has had a record of

having defaulted in the payment of money collected for others, including the discharge of

debts through bankruptcy proceedings; and

(iv) whether the applicant's license or registration to provide debt settlement services in

any other state has ever been revoked or suspended;

(6) a copy of the applicant's standard debt settlement services agreement that the applicant

intends to execute with debtors;
new text begin
and
new text end

deleted text begin

(7) proof of accreditation, unless the applicant submits an affidavit attesting that the

applicant does not provide credit counseling services; and

deleted text end

deleted text begin

(8)
deleted text end
new text begin
(7)
new text end
any other information and material as the commissioner may require.

The commissioner may, for good cause shown, temporarily waive any requirement of

this subdivision.

Sec. 15.
new text begin
REPEALER.
new text end

new text begin

Minnesota Statutes 2024, sections 56.08; 332A.02, subdivision 2; and 332B.02,

subdivision 2,

new text end

new text begin

are repealed.

new text end

ARTICLE 4

HEALTH PLAN REGULATORY ALIGNMENT

Section 1.

new text begin

[60A.071] SUBSTANTIAL ENROLLMENT GROWTH; NOTIFICATION.

new text end

new text begin

Subdivision 1.

new text end

new text begin

Notice required.

new text end

new text begin

(a) No later than April 15 each year, an insurance

company that issues health plans, as defined in section 62A.011, and is licensed under this

chapter to offer, sell, or issue a policy of accident and sickness insurance, as defined in

section 62A.01, subdivision 1, or that is a nonprofit health service plan corporation operating

under chapter 62C must notify the commissioner if, for an insurance company or nonprofit

health service plan corporation with at least 25,000 enrollees, the insurance company or

nonprofit health service plan corporation:

new text end

new text begin

(1) increases the total number of enrollees, as of April 1 in the current calendar year, by

more than 35 percent of the insurance company's or nonprofit health service plan corporation's

total number of enrollees for the immediately preceding calendar year; or

new text end

new text begin

(2) increases the total number of enrollees in a specific line of business or product by a

percentage that is greater than the percentage of growth threshold established by the

commissioner for the specific line of business or product.

new text end

new text begin

(b) For purposes of this section, the number of enrollees must be calculated in a manner

consistent with the insurance company or nonprofit health service plan corporation's reported

covered lives in the company's National Association of Insurance Commissioners Annual

Statement.

new text end

new text begin

Subd. 2.

new text end

new text begin

Additional information.

new text end

new text begin

(a) Upon receiving notice under subdivision 1, the

commissioner may request and the insurance company or nonprofit health service plan

corporation must provide additional information regarding the insurance company's or

nonprofit health service plan corporation's financial readiness to serve the increased

enrollment. The additional information requested may include but is not limited to:

new text end

new text begin

(1) the conditions contributing to the insurance company's or nonprofit health service

plan corporation's enrollment growth;

new text end

new text begin

(2) a three-year projected statutory balance sheet, income statements, and cash flow

statements for the current year and the subsequent two years;

new text end

new text begin

(3) the key assumptions impacting the projections and the sensitivity of the projections

to the assumptions; and

new text end

new text begin

(4) a description of anticipated issues associated with the insurance company's or

nonprofit health service plan corporation's business, including but not limited to (i) assets,

(ii) anticipated business growth and associated surplus strain, (iii) significant change in risk

profile, (iv) mix of business, and (v) reinsurance use, if any, in each case.

new text end

new text begin

(b) If the information reported under paragraph (a) raises a concern with respect to an

insurance company's or nonprofit health service plan corporation's business on a prospective

basis due to anticipated business growth, including but not limited to anticipated business

growth, strain on surplus, increased exposure to risk, or an imbalanced mix of business, the

commissioner may issue a corrective order specifying corrective actions the commissioner

determines are required. A corrective order issued under this paragraph is subject to review

under chapter 14.

new text end

Sec. 2.

Minnesota Statutes 2024, section 60A.50, subdivision 1, is amended to read:

Subdivision 1.

Scope.

For purposes of sections
60A.50
to
deleted text begin
60A.592
deleted text end
new text begin
60A.593
new text end
, the terms

in subdivisions 2 to 13 have the meanings given
deleted text begin
them
deleted text end
.

Sec. 3.

Minnesota Statutes 2024, section 60A.50, subdivision 3, is amended to read:

Subd. 3.

Commissioner.

"Commissioner" means the commissioner of commerce
deleted text begin
or the

commissioner of health, whichever commissioner otherwise regulates the health organization
deleted text end
.

Sec. 4.

new text begin

[60A.593] PROHIBITED ACTIVITIES.

new text end

new text begin

A domestic health organization that has a total adjusted capital equal to or less than the

domestic health organization's company action level RBC is prohibited from, without

receiving advance approval from the commissioner: (1) increasing the salary or benefits of

an officer or director, or (2) making preferential payment of bonuses, dividends, or other

payments the commissioner determines are preferential.

new text end

Sec. 5.

Minnesota Statutes 2024, section 60A.951, subdivision 3, is amended to read:

Subd. 3.

Commissioner.

"Commissioner" means the commissioner of commerce
deleted text begin
for

insurers regulated by the commissioner of commerce, and means the commissioner of health

for insurers regulated by the commissioner of health
deleted text end
.

Sec. 6.

Minnesota Statutes 2024, section 60A.985, subdivision 8, is amended to read:

Subd. 8.

Licensee.

"Licensee" means any person licensed, authorized to operate, or

registered, or required to be licensed, authorized, or registered by the Department of

Commerce
deleted text begin
or the Department of Health
deleted text end
under chapters 59A to 62M, 62Q to 62V, and 64B

to 79A.

Sec. 7.

Minnesota Statutes 2024, section 60A.9853, subdivision 1, is amended to read:

Subdivision 1.

Notification to the commissioner.

Each licensee shall notify the

commissioner of commerce
deleted text begin
or commissioner of health, whichever commissioner otherwise

regulates the licensee,
deleted text end
without unreasonable delay but in no event later than five business

days from a determination that a cybersecurity event has occurred when either of the

following criteria has been met:

(1) this state is the licensee's state of domicile, in the case of an insurer, or this state is

the licensee's home state, in the case of a producer, as those terms are defined in chapter

60K and the cybersecurity event has a reasonable likelihood of materially harming:

(i) any consumer residing in this state; or

(ii) any part of the normal operations of the licensee; or

(2) the licensee reasonably believes that the nonpublic information involved is of 250

or more consumers residing in this state and that is either of the following:

(i) a cybersecurity event impacting the licensee of which notice is required to be provided

to any government body, self-regulatory agency, or any other supervisory body pursuant

to any state or federal law; or

(ii) a cybersecurity event that has a reasonable likelihood of materially harming:

(A) any consumer residing in this state; or

(B) any part of the normal operations of the licensee.

Sec. 8.

Minnesota Statutes 2024, section 60A.9854, is amended to read:

60A.9854 POWER OF COMMISSIONER.

(a) The commissioner of commerce
deleted text begin
or commissioner of health, whichever commissioner

otherwise regulates the licensee, shall have
deleted text end
new text begin
has
new text end
power to examine and investigate into the

affairs of any licensee to determine whether the licensee has been or is engaged in any

conduct in violation of sections
60A.985
to
60A.9857
. This power is in addition to the

powers which the commissioner has under section
60A.031
. Any such investigation or

examination shall be conducted pursuant to section
60A.031
.

(b) Whenever the commissioner of commerce
deleted text begin
or commissioner of health
deleted text end
has reason to

believe that a licensee has been or is engaged in conduct in this state which violates sections

60A.985
to
60A.9857
, the commissioner of commerce
deleted text begin
or commissioner of health
deleted text end
may take

action that is necessary or appropriate to enforce those sections.

Sec. 9.

Minnesota Statutes 2024, section 60B.03, subdivision 2, is amended to read:

Subd. 2.

Commissioner.

"Commissioner" means the commissioner of commerce
deleted text begin
of the

state of Minnesota
deleted text end
and, in that commissioner's absence or disability, a deputy or other person

duly designated to act in that commissioner's place.
deleted text begin
In the context of rehabilitation or

liquidation of a health maintenance organization, "commissioner" means the commissioner

of health of the state of Minnesota and, in that commissioner's absence or disability, a deputy

or other person duly designated to act in that commissioner's place.
deleted text end

Sec. 10.

Minnesota Statutes 2024, section 60G.01, subdivision 2, is amended to read:

Subd. 2.

Commissioner.

"Commissioner" means the commissioner of commerce
deleted text begin
, except

that "commissioner" means the commissioner of health for administrative supervision of

health maintenance organizations
deleted text end
.

Sec. 11.

Minnesota Statutes 2024, section 60G.01, subdivision 4, is amended to read:

Subd. 4.

Department.

"Department" means the Department of Commerce
deleted text begin
, except that

"department" means the Department of Health for administrative supervision of health

maintenance organizations
deleted text end
.

Sec. 12.

Minnesota Statutes 2024, section 62A.02, subdivision 8, is amended to read:

Subd. 8.

Filing by health carriers for purposes of complying with the certification

requirements of MNsure.

No qualified health plan shall be offered through MNsure until

its form and the premium rates pertaining to the form have been approved by the

commissioner of commerce
deleted text begin
or health, as appropriate,
deleted text end
and the health plan has been determined

to comply with the certification requirements of MNsure in accordance with an agreement

between the commissioners of commerce and health and MNsure.

Sec. 13.

Minnesota Statutes 2024, section 62A.021, subdivision 1, is amended to read:

Subdivision 1.

Loss ratio standards.

(a) Notwithstanding section
62A.02
, subdivision

3, relating to loss ratios, and except as otherwise authorized by section
62A.02
, subdivision

3a, for individual policies or certificates, health care policies or certificates shall not be

delivered or issued for delivery to an individual or to a small employer as defined in section

62L.02
, unless the policies or certificates can be expected, as estimated for the entire period

for which rates are computed to provide coverage, to return to Minnesota policyholders and

certificate holders in the form of aggregate benefits not including anticipated refunds or

credits, provided under the policies or certificates, (1) at least 75 percent of the aggregate

amount of premiums earned in the case of policies issued in the small employer market, as

defined in section
62L.02
, subdivision 27, calculated on an aggregate basis; and (2) at least

65 percent of the aggregate amount of premiums earned in the case of each policy form or

certificate form issued in the individual market; calculated on the basis of incurred claims

experience or incurred health care expenses where coverage is provided by a health

maintenance organization on a service rather than reimbursement basis and earned premiums

for the period and according to accepted actuarial principles and practices. Assessments by

the reinsurance association created in chapter 62L and all types of taxes, surcharges, or

assessments created by Laws 1992, chapter 549, or created on or after April 23, 1992, are

included in the calculation of incurred claims experience or incurred health care expenses.

The applicable percentage for policies and certificates issued in the small employer market,

as defined in section
62L.02
, increases by one percentage point on July 1 of each year,

beginning on July 1, 1994, until an 82 percent loss ratio is reached on July 1, 2000. The

applicable percentage for policy forms and certificate forms issued in the individual market

increases by one percentage point on July 1 of each year, beginning on July 1, 1994, until

a 72 percent loss ratio is reached on July 1, 2000. A health carrier that enters a market after

July 1, 1993, does not start at the beginning of the phase-in schedule and must instead

comply with the loss ratio requirements applicable to other health carriers in that market

for each time period. Premiums earned and claims incurred in markets other than the small

employer and individual markets are not relevant for purposes of this section.

(b) All filings of rates and rating schedules shall demonstrate that actual expected claims

in relation to premiums comply with the requirements of this section when combined with

actual experience to date. Filings of rate revisions shall also demonstrate that the anticipated

loss ratio over the entire future period for which the revised rates are computed to provide

coverage can be expected to meet the appropriate loss ratio standards, and aggregate loss

ratio from inception of the policy form or certificate form shall equal or exceed the

appropriate loss ratio standards.

(c) A health carrier that issues health care policies and certificates to individuals or to

small employers, as defined in section
62L.02
, in this state shall file annually its rates, rating

schedule, and supporting documentation including ratios of incurred losses to earned

premiums by policy form or certificate form duration for approval by the commissioner

according to the filing requirements and procedures prescribed by the commissioner. The

supporting documentation shall also demonstrate in accordance with actuarial standards of

practice using reasonable assumptions that the appropriate loss ratio standards can be

expected to be met over the entire period for which rates are computed. The demonstration

shall exclude active life reserves. If the data submitted does not confirm that the health

carrier has satisfied the loss ratio requirements of this section, the commissioner shall notify

the health carrier in writing of the deficiency. The health carrier shall have 30 days from

the date of the commissioner's notice to file amended rates that comply with this section.

If the health carrier fails to file amended rates within the prescribed time, the commissioner

shall order that the health carrier's filed rates for the nonconforming policy form or certificate

form be reduced to an amount that would have resulted in a loss ratio that complied with

this section had it been in effect for the reporting period of the supplement. The health

carrier's failure to file amended rates within the specified time or the issuance of the

commissioner's order amending the rates does not preclude the health carrier from filing an

amendment of its rates at a later time. The commissioner shall annually make the submitted

data available to the public at a cost not to exceed the cost of copying. The data must be

compiled in a form useful for consumers who wish to compare premium charges and loss

ratios.

(d) Each sale of a policy or certificate that does not comply with the loss ratio

requirements of this section is an unfair or deceptive act or practice in the business of

insurance and is subject to the penalties in sections
72A.17
to
72A.32
.

(e)(1) For purposes of this section, health care policies issued as a result of solicitations

of individuals through the mail or mass media advertising, including both print and broadcast

advertising, shall be treated as individual policies.

(2) For purposes of this section, (i) "health care policy" or "health care certificate" is a

health plan as defined in section
62A.011
; and (ii) "health carrier" has the meaning given

in section
62A.011
and includes all health carriers delivering or issuing for delivery health

care policies or certificates in this state or offering these policies or certificates to residents

of this state.

(f) The loss ratio phase-in as described in paragraph (a) does not apply to individual

policies and small employer policies issued by a health plan company that is assessed less

than three percent of the total annual amount assessed by the Minnesota Comprehensive

Health Association. These policies must meet a 68 percent loss ratio for individual policies,

a 71 percent loss ratio for small employer policies with fewer than ten employees, and a 75

percent loss ratio for all other small employer policies.

(g) Notwithstanding paragraphs (a) and (f), the loss ratio shall be 60 percent for a health

plan as defined in section
62A.011
, offered by an insurance company licensed under chapter

60A that is assessed less than ten percent of the total annual amount assessed by the

Minnesota Comprehensive Health Association. For purposes of the percentage calculation

of the association's assessments, an insurance company's assessments include those of its

affiliates.

(h) The
deleted text begin
commissioners
deleted text end
new text begin
commissioner
new text end
of commerce
deleted text begin
and health shall each
deleted text end
new text begin
must
new text end
annually

issue a public report listing, by health plan company, the actual loss ratios experienced in

the individual and small employer markets in this state
deleted text begin
by the health plan companies that

the commissioners respectively regulate. The commissioners shall coordinate release of

these reports so as to release them as a joint report or as separate reports issued the same

day
deleted text end
. The report or reports shall be released no later than June 1 for loss ratios experienced

for the preceding calendar year. Health plan companies shall provide to the
deleted text begin
commissioners
deleted text end
new text begin

commissioner
new text end
any information requested by the
deleted text begin
commissioners
deleted text end
new text begin
commissioner
new text end
for purposes

of this paragraph.

Sec. 14.

Minnesota Statutes 2024, section 62A.61, is amended to read:

62A.61 DISCLOSURE OF METHODS USED BY HEALTH CARRIERS TO

DETERMINE USUAL AND CUSTOMARY FEES.

(a) A health carrier that bases reimbursement to health care providers upon a usual and

customary fee must maintain in its office a copy of a description of the methodology used

to calculate fees including at least the following:

(1) the frequency of the determination of usual and customary fees;

(2) a general description of the methodology used to determine usual and customary

fees; and

(3) the percentile of usual and customary fees that determines the maximum allowable

reimbursement.

(b) A health carrier must provide a copy of the information described in paragraph (a)

to the commissioner of health or the commissioner of commerce, upon request.

(c) The
deleted text begin
commissioner of health or the
deleted text end
commissioner of commerce
deleted text begin
, as appropriate,
deleted text end
may

use
deleted text begin
to enforce this section
deleted text end
any enforcement powers otherwise available to the commissioner

with respect to the health carrier
new text begin
to enforce this section
new text end
. The commissioner of
deleted text begin
health or
deleted text end

commerce
deleted text begin
, as appropriate,
deleted text end
may require health carriers to provide the information required

under this section and may use any powers granted under other laws relating to the regulation

of health carriers to enforce compliance.

(d) For purposes of this section, "health carrier" has the meaning given in section

62A.011
.

(e) "Usual and customary" means the normal charge, in the absence of insurance, of the

provider for a service or article, but not more than the prevailing charge in the area for like

service or article. A "like service" is the same nature and duration, requires the same skill,

and is performed by a provider of similar training and experience. A "like article" is one

that is identically or substantially equivalent. "Area" means the municipality or, in the case

of a large city, a subdivision of the city, in which the service or article is actually provided

or a greater area as is necessary to obtain a representative cross-section of charges for like

service or article.

Sec. 15.

Minnesota Statutes 2024, section 62A.65, subdivision 7, is amended to read:

Subd. 7.

Short-term coverage.

(a) For purposes of this section, "short-term coverage"

means an individual health plan that:

(1) is issued to provide coverage for a period of 185 days or less, except that the health

plan may permit coverage to continue until the end of a period of hospitalization for a

condition for which the covered person was hospitalized on the day that coverage would

otherwise have ended;

(2) is nonrenewable, provided that the health carrier may provide coverage for one or

more subsequent periods that satisfy clause (1), if the total of the periods of coverage do

not exceed a total of 365 days out of any 555-day period, plus any additional days covered

as a result of hospitalization on the day that a period of coverage would otherwise have

ended;

(3) does not cover any preexisting conditions, including ones that originated during a

previous identical policy or contract with the same health carrier where coverage was

continuous between the previous and the current policy or contract; and

(4) is available with an immediate effective date without underwriting upon receipt of

a completed application indicating eligibility under the health carrier's eligibility

requirements, provided that coverage that includes optional benefits may be offered on a

basis that does not meet this requirement.

(b) Short-term coverage is not subject to subdivisions 2 and 5. Short-term coverage may

exclude as a preexisting condition any injury, illness, or condition for which the covered

person had medical treatment, symptoms, or any manifestations before the effective date

of the coverage, but dependent children born or placed for adoption during the policy period

must not be subject to this provision.

(c) Notwithstanding subdivision 3, and section
62A.021
, a health carrier may combine

short-term coverage with its most commonly sold individual qualified plan, as defined in

section
62E.02
, other than short-term coverage, for purposes of complying with the loss

ratio requirement.

(d) The 365-day coverage limitation provided in paragraph (a) applies to the total number

of days of short-term coverage that covers a person, regardless of the number of policies,

contracts, or health carriers that provide the coverage. A written application for short-term

coverage must ask the applicant whether the applicant has been covered by short-term

coverage by any health carrier within the 555 days immediately preceding the effective date

of the coverage being applied for. Short-term coverage issued in violation of the 365-day

limitation is valid until the end of its term and does not lose its status as short-term coverage,

in spite of the violation. A health carrier that knowingly issues short-term coverage in

violation of the 365-day limitation is subject to the administrative penalties otherwise

available to the commissioner of commerce
deleted text begin
or the commissioner of health, as appropriate
deleted text end
.

Sec. 16.

Minnesota Statutes 2024, section 62A.65, subdivision 8, is amended to read:

Subd. 8.

Cessation of individual business.

Notwithstanding the provisions of

subdivisions 1 to 7, a health carrier may elect to cease doing business in the individual health

plan market in this state if it complies with the requirements of this subdivision. For purposes

of this section, "cease doing business" means to discontinue issuing new individual health

plans and to refuse to renew all of the health carrier's existing individual health plans issued

in this state whose terms permit refusal to renew under the circumstances specified in this

subdivision. This subdivision does not permit cancellation of an individual health plan,

unless the terms of the health plan permit cancellation under the circumstances specified in

this subdivision. A health carrier electing to cease doing business in the individual health

plan market in this state shall notify the commissioner 180 days prior to the effective date

of the cessation. Within 30 days after the termination, the health carrier shall submit to the

commissioner a complete list of policyholders that have been terminated. The cessation of

business does not include the failure of a health carrier to offer or issue new business in the

individual health plan market or continue an existing product line in that market, provided

that a health carrier does not terminate, cancel, or fail to renew its current individual health

plan business. A health carrier electing to cease doing business in the individual health plan

market shall provide 120 days' written notice to each policyholder covered by an individual

health plan issued by the health carrier. This notice must also inform each policyholder of

the existence of the Minnesota Comprehensive Health Association, the requirements for

being accepted, the procedures for applying for coverage, and the telephone numbers at the
deleted text begin

Department of Health and the
deleted text end
Department of Commerce for information about private

individual or family health coverage. A health carrier that ceases to write new business in

the individual health plan market shall continue to be governed by this section with respect

to continuing individual health plan business conducted by the health carrier. A health carrier

that ceases to do business in the individual health plan market after July 1, 1994, is prohibited

from writing new business in the individual health plan market in this state for a period of

five years from the date of notice to the commissioner. This subdivision applies to any

health maintenance organization that ceases to do business in the individual health plan

market in one service area with respect to that service area only. Nothing in this subdivision

prohibits an affiliated health maintenance organization from continuing to do business in

the individual health plan market in that same service area. The right to refuse to renew an

individual health plan under this subdivision does not apply to individual health plans issued

on a guaranteed renewable basis that does not permit refusal to renew under the circumstances

specified in this subdivision.

Sec. 17.

new text begin

[62D.015] REGULATORY DUTIES; TRANSFER.

new text end

new text begin

Subdivision 1.

new text end

new text begin

Transfer and restructuring.

new text end

new text begin

(a) The regulatory oversight with respect

to health maintenance organizations transfers from the commissioner of health to the

commissioner of commerce on July 1, 2026.

new text end

new text begin

(b) The agency restructuring under this section must be conducted in accordance with

sections 15.039 and 43A.045.

new text end

new text begin

Subd. 2.

new text end

new text begin

Succession; employees; liability.

new text end

new text begin

(a) Employees related to the functions

assigned to the commissioner of health are transferred to the Department of Commerce 30

days after the date the commissioner of health approves the transfer.

new text end

new text begin

(b) An employee transferred under paragraph (a):

new text end

new text begin

(1) must not have the employee's employment status or job classification altered as a

result of the transfer;

new text end

new text begin

(2) if represented by an exclusive representative before the transfer, remains represented

by the same exclusive representative after the transfer occurs;

new text end

new text begin

(3) if an applicable collective bargaining agreement with an exclusive representative

was effective before the transfer, remains subject to the collective bargaining agreement

for the remainder of the agreement's term; and

new text end

new text begin

(4) if employed in a temporary unclassified position, the total length of time that the

employee has served in the appointment includes all time served in the appointment at the

transferring agency and the time served in the appointment at the department. An employee

in a temporary unclassified position who was hired by a transferring agency through an

open competitive selection process in accordance with a policy enacted by the commissioner

of management and budget is considered to have been hired through an open competitive

selection process after the transfer.

new text end

new text begin

(c) The state must meet and negotiate with the exclusive representatives of transferred

employees regarding proposed changes that affect or relate to the transferred employees'

terms and conditions of employment to the extent that the proposed changes are not addressed

in the applicable collective bargaining agreement.

new text end

new text begin

(d) If the state transfers ownership or control of a department facility, service, or operation

to a private or public entity by subcontracting, sale, assignment, lease, or other transfer, the

state must require as a written condition of the transfer of ownership or control:

new text end

new text begin

(1) an employee who performs work in the facility, service, or operation must be offered

employment with the entity acquiring ownership or control before the entity offers

employment to another individual who was not employed by the transferring agency at the

time the transfer occurs; and

new text end

new text begin

(2) the entity acquiring ownership or control is prohibited from reducing the transferred

employee's wage and benefit standards until the collective bargaining agreement in effect

at the time the transfer occurs expires or for a period of two years after the transfer occurs,

whichever is longer.

new text end

new text begin

(e) The state of Minnesota and the state's officers or agents are not liable for and are not

subject to a cause of action arising from the action or inaction of an entity acquiring

ownership or control of a department facility, service, or operation.

new text end

Sec. 18.

Minnesota Statutes 2024, section 62D.08, subdivision 1, is amended to read:

Subdivision 1.

Notice of changes.

A health maintenance organization shall, unless

otherwise provided for by rules adopted by the commissioner of
deleted text begin
health
deleted text end
new text begin
commerce
new text end
, file

notice with the commissioner of
deleted text begin
health prior to any modification of
deleted text end
new text begin
commerce before

modifying
new text end
the operations or documents described in the information submitted under
new text begin
section

62D.03, subdivision 4,
new text end
clauses (a), (b), (e), (f), (g), (i), (j), (l), (m), (n), (o), (p), (q), (r), (s),

and (t)
deleted text begin
of section
62D.03, subdivision 4
deleted text end
. If the commissioner of
deleted text begin
health
deleted text end
new text begin
commerce
new text end
does not

disapprove of the filing within 60 days, it shall be deemed approved and may be implemented

by the health maintenance organization.

Sec. 19.

Minnesota Statutes 2024, section 62D.08, subdivision 2, is amended to read:

Subd. 2.

Annual report required.

Every health maintenance organization shall annually,

on or before April 1, file a verified report with the commissioner of
deleted text begin
health
deleted text end
new text begin
commerce
new text end

covering the preceding calendar year. However, utilization data required under subdivision

3, clause (c), shall be filed on or before July 1.

Sec. 20.

Minnesota Statutes 2024, section 62D.08, subdivision 3, is amended to read:

Subd. 3.

Report requirements.

deleted text begin
Such
deleted text end
new text begin
The
new text end
report shall be
new text begin
submitted
new text end
on forms prescribed

by the commissioner of
deleted text begin
health,
deleted text end
new text begin
commerce
new text end
and shall include:

(a) a financial statement of the organization, including its balance sheet and receipts and

disbursements for the preceding year certified by an independent certified public accountant,

reflecting at least (1) all prepayment and other payments received for health care services

rendered, (2) expenditures to all providers, by classes or groups of providers, and insurance

companies or nonprofit health service plan corporations engaged to fulfill obligations arising

out of the health maintenance contract, (3) expenditures for capital improvements, or

additions thereto, including but not limited to construction, renovation or purchase of

facilities and capital equipment, and (4) a supplementary statement of assets, liabilities,

premium revenue, and expenditures for risk sharing business under section
62D.04,

subdivision 1
, on forms prescribed by the commissioner;

(b) the number of new enrollees enrolled during the year, the number of group enrollees

and the number of individual enrollees as of the end of the year and the number of enrollees

terminated during the year;

(c) a summary of information compiled pursuant to section
62D.04, subdivision 1
, clause

(c), in such form as may be required by the commissioner of
deleted text begin
health
deleted text end
new text begin
commerce
new text end
;

(d) a report of the names and addresses of all persons set forth in section
62D.03,

subdivision 4
, clause (c), who were associated with the health maintenance organization or

the major participating entity during the preceding year, and the amount of wages, expense

reimbursements, or other payments to such individuals for services to the health maintenance

organization or the major participating entity, as those services relate to the health

maintenance organization, including a full disclosure of all financial arrangements during

the preceding year required to be disclosed pursuant to section
62D.03, subdivision 4
, clause

(d);

(e) a separate report addressing health maintenance contracts sold to individuals covered

by Medicare, title XVIII of the Social Security Act, as amended, including the information

required under section
62D.30, subdivision 6
;

(f) data on the number of complaints received and the category of each complaint as

defined by the commissioner. The categories must include access, communication and

behavior, health plan administration, facilities and environment, coordination of care, and

technical competence and appropriateness. The commissioner, in consultation with interested

stakeholders, shall define complaint categories to be used by each health maintenance

organization by July 1, 2017, and the categories must be used by each health maintenance

organization beginning calendar year 2018; and

(g) such other information relating to the performance of the health maintenance

organization as is reasonably necessary to enable the commissioner of
deleted text begin
health
deleted text end
new text begin
commerce
new text end
to

carry out the duties under sections
62D.01
to
62D.30
.

Sec. 21.

Minnesota Statutes 2024, section 62D.08, subdivision 7, is amended to read:

Subd. 7.

Consistent administrative expenses and investment income reporting.

(a)

Every health maintenance organization must directly allocate administrative expenses to

specific lines of business or products when such information is available. Remaining expenses

that cannot be directly allocated must be allocated based on other methods, as recommended

by the Advisory Group on Administrative Expenses. Health maintenance organizations

must submit this information, including administrative expenses for dental services, using

the reporting template provided by the commissioner of
deleted text begin
health
deleted text end
new text begin
commerce
new text end
.

(b) Every health maintenance organization must allocate investment income based on

cumulative net income over time by business line or product and must submit this

information, including investment income for dental services, using the reporting template

provided by the commissioner of
deleted text begin
health
deleted text end
new text begin
commerce
new text end
.

Sec. 22.

Minnesota Statutes 2024, section 62D.08, is amended by adding a subdivision to

read:

new text begin

Subd. 8.

new text end

new text begin

Information sharing.

new text end

new text begin

The commissioner of commerce must share nonpublic

data submitted by health maintenance organizations under this section with (1) the

commissioner of health and the commissioner of human services, (2) other state and federal

regulatory agencies, and (3) the National Association of Insurance Commissioners, if the

requesting recipient under clauses (1) to (3) agrees to maintain the data in a manner consistent

with the data's classification under chapter 13. The commissioner of commerce may enter

into agreements governing the sharing and use of information, provided the agreements are

consistent with this subdivision.

new text end

Sec. 23.

new text begin

[62D.085] SUBSTANTIAL ENROLLMENT GROWTH; NOTICE.

new text end

new text begin

Subdivision 1.

new text end

new text begin

Notice required.

new text end

new text begin

(a) No later than April 15 each year, a health

maintenance organization that is operating under this chapter and that has at least 25,000

enrollees must notify the commissioner if the health maintenance organization:

new text end

new text begin

(1) increases the total number of enrollees, as of April 1 in the current calendar year, by

more than 35 percent of the health maintenance organization's total number of enrollees for

the immediately preceding calendar year; or

new text end

new text begin

(2) increases the total number of enrollees in a specific line of business or product by a

percentage that is greater than the percentage of growth threshold established by the

commissioner for the specific line of business or product.

new text end

new text begin

(b) For purposes of this section, the number of enrollees must be calculated in a manner

consistent with the health maintenance organization's reported covered lives in the company's

National Association of Insurance Commissioners Annual Statement.

new text end

new text begin

Subd. 2.

new text end

new text begin

Additional information.

new text end

new text begin

(a) Upon receiving notice under subdivision 1, the

commissioner may request and the health maintenance organization must provide additional

information regarding the health maintenance organization's financial readiness to serve

the increased enrollment. The additional information requested may include but is not limited

to:

new text end

new text begin

(1) the conditions contributing to the health maintenance organization's enrollment

growth;

new text end

new text begin

(2) a three-year projected statutory balance sheet, income statements, and cash flow

statements for the current year and the subsequent two years;

new text end

new text begin

(3) the key assumptions impacting the projections and the sensitivity of the projections

to the assumptions; and

new text end

new text begin

(4) a description of anticipated issues associated with the health maintenance

organization's business, including but not limited to (i) assets, (ii) anticipated business

growth and associated surplus strain, (iii) significant change in risk profile, (iv) mix of

business, and (v) reinsurance use, if any, in each case.

new text end

new text begin

(b) If the information reported under paragraph (a) raises a concern with respect to a

health maintenance organization's business on a prospective basis due to anticipated business

growth, including but not limited to anticipated business growth, strain on surplus, increased

exposure to risk, or an imbalanced mix of business, the commissioner may issue a corrective

order specifying corrective actions the commissioner determines are required. A corrective

order issued under this paragraph is subject to review under chapter 14.

new text end

Sec. 24.

Minnesota Statutes 2024, section 62D.12, subdivision 1, is amended to read:

Subdivision 1.

False representations.

No health maintenance organization or

representative thereof may cause or knowingly permit the use of advertising or solicitation

which is untrue or misleading, or any form of evidence of coverage which is deceptive.

Each health maintenance organization
deleted text begin
shall be
deleted text end
new text begin
is
new text end
subject to sections
72A.17
to
72A.32
deleted text begin
,

relating to the regulation of trade practices, except (a) to the extent that the nature of a health

maintenance organization renders such sections clearly inappropriate and (b) that enforcement

shall be by the commissioner of health and not by the commissioner of commerce
deleted text end
. Every

health maintenance organization
deleted text begin
shall be
deleted text end
new text begin
is
new text end
subject to sections
8.31
and
325F.69
.

Sec. 25.

Minnesota Statutes 2024, section 62D.124, subdivision 5, is amended to read:

Subd. 5.

Provider networks.

The
deleted text begin
commissioner of health, the
deleted text end
commissioner of

commerce
deleted text begin
,
deleted text end
and the commissioner of human services shall merge reporting requirements

for health maintenance organizations and county-based purchasing plans related to Minnesota

Department of
deleted text begin
Health
deleted text end
new text begin
Commerce
new text end
oversight of network adequacy under this section and the

provider network list reported to the Department of Human Services under Minnesota Rules,

part
4685.2100
. The commissioners shall work with health maintenance organizations and

county-based purchasing plans to ensure that the report merger is done in a manner that

simplifies health maintenance organization and county-based purchasing plan reporting

processes.

Sec. 26.

Minnesota Statutes 2025 Supplement, section 62D.21, is amended to read:

62D.21 FEES.

Every health maintenance organization subject to sections
62D.01
to
62D.30
shall pay

to the commissioner of
deleted text begin
health
deleted text end
new text begin
commerce
new text end
the following fees:

(1) filing an application for a certificate of authority: $10,000;

(2) filing an amendment to a certificate of authority: $125;

(3) filing each annual report: $400;

(4) filing each quarterly report: $200; and

(5) filing annual plan review documents, amendments to plan documents, and quality

plans: $125.

Sec. 27.

Minnesota Statutes 2025 Supplement, section 62D.211, is amended to read:

62D.211 RENEWAL FEE.

Each health maintenance organization subject to sections
62D.01
to
62D.30
shall submit

to the commissioner of
deleted text begin
health
deleted text end
new text begin
commerce
new text end
each year before June 15 a certificate of authority

renewal fee in the amount of $30,000 each plus 88 cents per person enrolled in the health

maintenance organization on December 31 of the preceding year.

Sec. 28.

new text begin

[62D.212] HEALTH MAINTENANCE ORGANIZATION REGULATION

ACCOUNT.

new text end

new text begin

(a) A health maintenance organization regulation account is established as a separate

account in the special revenue fund in the state treasury. The commissioner of commerce

must credit to the account filing fees and renewal fees collected under sections 62D.21 and

62D.211, appropriations and transfers, and other revenue related to the activities identified

in paragraph (b). Earnings, including interest, dividends, other earnings arising from the

account's assets, and remaining money from fiscal years occurring before July 1, 2026, must

be credited to the account. The commissioner of commerce must manage the account.

new text end

new text begin

(b) Money in the account is appropriated to the commissioner of commerce to administer

this chapter and to reimburse the department's costs incurred to administer this section.

new text end

Sec. 29.

Minnesota Statutes 2024, section 62D.221, subdivision 1, is amended to read:

Subdivision 1.

Insurance provisions applicable to health maintenance

organizations.

Health maintenance organizations are subject to sections
60A.135
,
60A.136
,

60A.137
,
60A.16
,
60A.161
,
60D.17
,
60D.18
, and
60D.20
and must comply with the

provisions of these sections applicable to insurers. In applying these sections to health

maintenance organizations, "commissioner" means the commissioner of
deleted text begin
health
deleted text end
new text begin
commerce
new text end
.

Health maintenance organizations are subject to Minnesota Rules, chapter 2720, as applicable

to sections
60D.17
,
60D.18
, and
60D.20
, and must comply with the provisions of chapter

2720 applicable to insurers, unless the commissioner of
deleted text begin
health
deleted text end
new text begin
commerce
new text end
adopts rules to

implement this subdivision.

Sec. 30.

Minnesota Statutes 2024, section 62D.221, subdivision 2, is amended to read:

Subd. 2.

Statement.

In addition to the conditions in section
60D.17, subdivision 1
,

subjecting a health maintenance organization to filing requirements, no person other than

the issuer shall acquire all or substantially all of the assets of a domestic nonprofit health

maintenance organization through any means unless at the time the offer, request, or

invitation is made or the agreement is entered into the person has filed with the commissioner

and has sent to the health maintenance organization a statement containing the information

required in section
60D.17
and the offer, request, invitation, agreement, or acquisition has

been approved by the commissioner of
deleted text begin
health
deleted text end
new text begin
commerce
new text end
in the manner prescribed in section

60D.17
.

Sec. 31.

Minnesota Statutes 2024, section 62E.11, subdivision 9, is amended to read:

Subd. 9.

Special assessment upon termination of individual health coverage.

new text begin
(a)
new text end

Each contributing member that terminates individual health coverage for reasons other than
deleted text begin

(a)
deleted text end
new text begin
(1)
new text end
nonpayment of premium;
deleted text begin
(b)
deleted text end
new text begin
(2)
new text end
failure to make co-payments;
deleted text begin
(c)
deleted text end
new text begin
(3)
new text end
enrollee moving

out of the area served; or
deleted text begin
(d)
deleted text end
new text begin
(4)
new text end
a materially false statement or misrepresentation by the

enrollee in the application for membership; and does not provide or arrange for replacement

coverage that meets the requirements of section
62D.121
; shall pay a special assessment to

the state plan based upon the number of terminated individuals who join the comprehensive

health insurance plan as authorized under section
62E.14, subdivisions 1, paragraph (d)
,

and 6. Such a contributing member shall pay the association an amount equal to the average

cost of an enrollee in the state plan in the year in which the member terminated enrollees

multiplied by the total number of terminated enrollees who enroll in the state plan.

new text begin

(b)
new text end
The average cost of an enrollee in the state comprehensive health insurance plan

shall be determined by dividing the state plan's total annual losses by the total number of

enrollees from that year. This cost will be assessed to the contributing member who has

terminated health coverage before the association makes the annual determination of each

contributing member's liability as required under this section.

new text begin

(c)
new text end
In the event that the contributing member is terminating health coverage because of

a loss of health care providers, the commissioner may review whether or not the special

assessment established under this subdivision will have an adverse impact on the contributing

member or its enrollees or insureds, including but not limited to causing the contributing

member to fall below statutory net worth requirements. If the commissioner determines that

the special assessment would have an adverse impact on the contributing member or its

enrollees or insureds, the commissioner may adjust the amount of the special assessment,

or establish alternative payment arrangements to the state plan. For health maintenance

organizations regulated under chapter 62D, the commissioner of
deleted text begin
health
deleted text end
new text begin
commerce
new text end
shall

make the determination regarding any adjustment in the special assessment
deleted text begin
and shall transmit

that determination to the commissioner of commerce
deleted text end
.

Sec. 32.

Minnesota Statutes 2024, section 62E.11, subdivision 13, is amended to read:

Subd. 13.

State funding; effect on premium rates of members.

In approving the

premium rates as required in sections
62A.65, subdivision 3
; and
62L.08, subdivision 8
,

the
deleted text begin
commissioners
deleted text end
new text begin
commissioner
new text end
of
deleted text begin
health and
deleted text end
commerce shall ensure that any appropriation

to reduce the annual assessment made on the contributing members to cover the costs of

the Minnesota comprehensive health insurance plan as required under this section is reflected

in the premium rates charged by each contributing member.

Sec. 33.

Minnesota Statutes 2024, section 62J.40, is amended to read:

62J.40 COST CONTAINMENT DATA FROM STATE AGENCIES AND OTHER

GOVERNMENTAL UNITS.

(a) All state departments or agencies that administer one or more health care programs

shall provide to the commissioner of health any additional data on the health care programs

they administer that is requested by the commissioner of health, including data in

unaggregated form, for purposes of developing estimates of spending, setting spending

limits, and monitoring actual spending. The data must be provided at the times and in the

form specified by the commissioner of health.

(b) For purposes of estimating total health care spending as provided in section
62J.301,

subdivision 4
, clause (c), all local governmental units shall provide expenditure data to the

commissioner. The commissioner shall consult with representatives of the affected local

government units in establishing definitions, reporting formats, and reporting time frames.

As much as possible, the data shall be collected in a manner that ensures that the data

collected is consistent with data collected from the private sector and minimizes the reporting

burden to local government.

new text begin

(c) A state agency that purchases health care services, provides oversight over health

insurance rates, collects health care taxes, or regulates health care entities must provide to

the commissioner nonpublic data the commissioner requests to satisfy statutory duties under

sections 62J.301 to 62J.461, 62J.84, 62J.87, 62U.01 to 62U.10, 144.70, 145D.01, and

145D.02, with respect to monitoring the health care market, including but not limited to

consolidation, transaction, corporate structure, utilization, quality, spending growth, and

prescription drug supply chains.

new text end

new text begin

(d) The commissioner of commerce may request unique or custom data sets from a state

agency in a request under paragraph (c). The state agency may charge the commissioner of

commerce a fee to provide data sets under paragraph (c) at the same rate the state agency

charges another public or private entity for the same data.

new text end

new text begin

(e) Data provided to the commissioner under paragraph (c) retains the data's original

classification under chapter 13. Data provided to the commissioner under paragraph (c)

may be included in public reports if the data are aggregated and deidentified.

new text end

Sec. 34.

Minnesota Statutes 2024, section 62J.60, subdivision 5, is amended to read:

Subd. 5.

Annual reporting.

As part of an annual filing made with the commissioner of
deleted text begin

health or
deleted text end
commerce
deleted text begin
on or after January 1, 2003
deleted text end
, a group purchaser shall certify compliance

with this section and shall submit to the commissioner of
deleted text begin
health or
deleted text end
commerce a copy of the

Minnesota uniform health care identification card used by the group purchaser.

Sec. 35.

Minnesota Statutes 2024, section 62K.07, subdivision 2, is amended to read:

Subd. 2.

Prescription drug costs.

(a) Each health carrier that offers a prescription drug

benefit in its individual health plans or small group health plans shall include in the applicable

rate filing required under section
62A.02
the following information about covered prescription

drugs:

(1) the 25 most frequently prescribed drugs in the previous plan year;

(2) the 25 most costly prescription drugs as a portion of the individual health plan's or

small group health plan's total annual expenditures in the previous plan year;

(3) the 25 prescription drugs that have caused the greatest increase in total individual

health plan or small group health plan spending in the previous plan year;

(4) the projected impact of the cost of prescription drugs on premium rates;

(5) if any health plan offered by the health carrier requires enrollees to pay cost-sharing

on any covered prescription drugs including deductibles, co-payments, or coinsurance in

an amount that is greater than the amount the enrollee's health plan would pay for the drug

absent the applicable enrollee cost-sharing and after accounting for any rebate amount; and

(6) if the health carrier prohibits third-party payments including manufacturer drug

discounts or coupons that cover all or a portion of an enrollee's cost-sharing requirements

including deductibles, co-payments, or coinsurance from applying toward the enrollee's

cost-sharing obligations under the enrollee's health plan.

(b) The commissioner of commerce
new text begin
must share reported data with the commissioner of

health and
new text end
, in consultation with the commissioner of health, shall release a summary of the

information reported in paragraph (a) at the same time as the information required under

section
62A.02, subdivision 2
, paragraph (c).

Sec. 36.

Minnesota Statutes 2024, section 62L.02, subdivision 8, is amended to read:

Subd. 8.

Commissioner.

"Commissioner" means the commissioner of commerce
deleted text begin
for

health carriers subject to the jurisdiction of the Department of Commerce or the commissioner

of health for health carriers subject to the jurisdiction of the Department of Health, or the

relevant commissioner's designated representative. For purposes of sections
62L.13
to

62L.22
, "commissioner" means the commissioner of commerce or that commissioner's

designated representative
deleted text end
.

Sec. 37.

Minnesota Statutes 2024, section 62L.08, subdivision 11, is amended to read:

Subd. 11.

Loss ratio standards.

Notwithstanding section
62A.02, subdivision 3
, relating

to loss ratios, each policy or contract form used with respect to a health benefit plan offered,

or issued in the small employer market, is subject, beginning July 1, 1993, to section
62A.021
.
deleted text begin

The commissioner of health has, with respect to carriers under that commissioner's

jurisdiction, all of the powers of the commissioner of commerce under that section.
deleted text end

Sec. 38.

Minnesota Statutes 2024, section 62L.09, subdivision 3, is amended to read:

Subd. 3.

Reentry prohibition.

(a) Except as otherwise provided in paragraph (b), a

health carrier that ceases to do business in the small employer market after July 1, 1993, is

prohibited from writing new business in the small employer market in this state for a period

of five years from the date of notice to the commissioner. This subdivision applies to any

health maintenance organization that ceases to do business in the small employer market

in one service area with respect to that service area only. Nothing in this subdivision prohibits

an affiliated health maintenance organization from continuing to do business in the small

employer market in that same service area.

(b) The commissioner of commerce
deleted text begin
or the commissioner of health
deleted text end
may permit a health

carrier that ceases to do business in the small employer market in this state after July 1,

1993, to begin writing new business in the small employer market if:

(1) since the carrier ceased doing business in the small employer market, legislative

action has occurred that has significantly changed the effect on the carrier of its decision to

cease doing business in the small employer market; and

(2) the commissioner deems it appropriate.

Sec. 39.

Minnesota Statutes 2024, section 62L.10, subdivision 4, is amended to read:

Subd. 4.

Review of premium rates.

The commissioner shall regulate premium rates

charged or proposed to be charged by all health carriers in the small employer market under

section
62A.02
.
deleted text begin
The commissioner of health has, with respect to carriers under that

commissioner's jurisdiction, all of the powers of the commissioner of commerce under that

section.
deleted text end

Sec. 40.

Minnesota Statutes 2024, section 62L.11, subdivision 2, is amended to read:

Subd. 2.

Enforcement powers.

The
deleted text begin
commissioners
deleted text end
new text begin
commissioner
new text end
of
deleted text begin
health and
deleted text end

commerce
deleted text begin
each
deleted text end
has
new text begin
,
new text end
for purposes of this chapter
new text begin
,
new text end
all of
deleted text begin
each
deleted text end
new text begin
the
new text end
commissioner's
deleted text begin
respective
deleted text end

powers under other chapters that are applicable to
deleted text begin
their respective
deleted text end
new text begin
the commissioner's
new text end
duties

under this chapter.

Sec. 41.

Minnesota Statutes 2024, section 62M.11, is amended to read:

62M.11 COMPLAINTS TO COMMERCE
deleted text begin
OR HEALTH
deleted text end
.

Notwithstanding the provisions of this chapter, an enrollee may file a complaint regarding

an adverse determination directly to the commissioner
deleted text begin
responsible for regulating the

utilization review organization
deleted text end
new text begin
of commerce
new text end
.

Sec. 42.

Minnesota Statutes 2024, section 62Q.01, subdivision 2, is amended to read:

Subd. 2.

Commissioner.

"Commissioner" means
deleted text begin
the commissioner of health for purposes

of regulating health maintenance organizations, and community integrated service networks,

or
deleted text end
the commissioner of commerce for purposes of regulating
deleted text begin
all other
deleted text end
health plan companies.

For all other purposes, "commissioner" means the commissioner of health.

Sec. 43.

Minnesota Statutes 2024, section 62Q.106, is amended to read:

62Q.106 DISPUTE RESOLUTION BY COMMISSIONER.

(a) A complainant may at any time submit a complaint to the
deleted text begin
appropriate
deleted text end
commissioner

to investigate. After investigating a complaint, or reviewing a company's decision, the
deleted text begin

appropriate
deleted text end
commissioner may order a remedy as authorized under chapter 45, 60A, or 62D.

(b) In investigating a complaint filed against a health maintenance organization regarding

a vulnerable adult, upon request, the commissioner of
deleted text begin
health
deleted text end
new text begin
commerce
new text end
must interview at

least one family member of the complainant or the subject of the complaint. If the

complainant or the subject of the complaint does not want any family members to be

interviewed, this information will be included in the investigative file.

Sec. 44.

Minnesota Statutes 2024, section 62Q.188, subdivision 2, is amended to read:

Subd. 2.

Flexible benefits plan.

Notwithstanding any provision of this chapter, chapter

363A, or any other law to the contrary, a health plan company may offer, sell, issue, and

renew a health plan that is a flexible benefits plan under this section if the following

requirements are satisfied:

(1) the health plan must be offered in compliance with the laws of this state, except as

otherwise permitted in this section;

(2) the health plan must be designed to enable covered persons to better manage costs

and coverage options through the use of co-pays, deductibles, and other cost-sharing

arrangements;

(3) the health plan may modify or exclude any or all coverages of benefits that would

otherwise be required by law, except for maternity benefits and other benefits required under

federal law;

(4) each health plan and plan's premiums must be approved by the commissioner of
deleted text begin

health or
deleted text end
commerce,
deleted text begin
whichever is appropriate under section
62Q.01, subdivision 2
,
deleted text end
but
deleted text begin

neither
deleted text end
new text begin
the
new text end
commissioner may
new text begin
not
new text end
disapprove a plan on the grounds of a modification or

exclusion permitted under clause (3); and

(5) prior to the sale of the health plan, the purchaser must be given a written list of the

coverages otherwise required by law that are modified or excluded in the health plan. The

list must include a description of each coverage in the list and indicate whether the coverage

is modified or excluded. If coverage is modified, the list must describe the modification.

The list may, but is not required to, also list any or all coverages otherwise required by law

that are included in the health plan and indicate that they are included. The health plan

company must require that a copy of this written list be provided, prior to the effective date

of the health plan, to each enrollee or employee who is eligible for health coverage under

the plan.

Sec. 45.

Minnesota Statutes 2024, section 62Q.37, subdivision 2, is amended to read:

Subd. 2.

Definitions.

(a) For purposes of this section, the following terms have the

meanings given them.

(b) "Commissioner" means the commissioner of
deleted text begin
health for purposes of regulating health

maintenance organizations and community integrated service networks, the commissioner

of
deleted text end
commerce for purposes of regulating
new text begin
health maintenance organizations and
new text end
nonprofit

health service plan corporations, or the commissioner of human services for the purpose of

contracting with managed care organizations serving persons enrolled in programs under

chapter 256B or 256L.

(c) "Health plan company" means (1) a nonprofit health service plan corporation operating

under chapter 62C; (2) a health maintenance organization operating under chapter 62D; (3)

a community integrated service network operating under chapter 62N; or (4) a managed

care organization operating under chapter 256B or 256L.

(d) "Nationally recognized independent organization" means (1) an organization that

sets specific national standards governing health care quality assurance processes, utilization

review, provider credentialing, marketing, and other topics covered by this chapter and

other chapters and audits and provides accreditation to those health plan companies that

meet those standards. The American Accreditation Health Care Commission (URAC), the

National Committee for Quality Assurance (NCQA), the Joint Commission on Accreditation

of Healthcare Organizations (JCAHO), and the Accreditation Association for Ambulatory

Health Care (AAAHC) are, at a minimum, defined as nationally recognized independent

organizations; and (2) the Centers for Medicare and Medicaid Services for purposes of

reviews or audits conducted of health plan companies under Part C of Title XVIII of the

Social Security Act or under section 1876 of the Social Security Act.

(e) "Performance standard" means those standards relating to quality management and

improvement, access and availability of service, utilization review, provider selection,

provider credentialing, marketing, member rights and responsibilities, complaints, appeals,

grievance systems, enrollee information and materials, enrollment and disenrollment,

subcontractual relationships and delegation, confidentiality, continuity and coordination of

care, assurance of adequate capacity and services, coverage and authorization of services,

practice guidelines, health information systems, and financial solvency.

Sec. 46.

Minnesota Statutes 2024, section 62Q.47, is amended to read:

62Q.47 ALCOHOLISM, MENTAL HEALTH, AND CHEMICAL DEPENDENCY

SERVICES.

(a) All health plans, as defined in section
62Q.01
, that provide coverage for alcoholism,

mental health, or chemical dependency services, must comply with the requirements of this

section.

(b) Cost-sharing requirements and benefit or service limitations for outpatient mental

health and outpatient chemical dependency and alcoholism services, except for persons

seeking chemical dependency services under section 245G.05, must not place a greater

financial burden on the insured or enrollee, or be more restrictive than those requirements

and limitations for outpatient medical services.

(c) Cost-sharing requirements and benefit or service limitations for inpatient hospital

mental health services, psychiatric residential treatment facility services, and inpatient

hospital and residential chemical dependency and alcoholism services, except for persons

seeking chemical dependency services under section 245G.05, must not place a greater

financial burden on the insured or enrollee, or be more restrictive than those requirements

and limitations for inpatient hospital medical services.

(d) A health plan company must not impose an NQTL with respect to mental health and

substance use disorders in any classification of benefits unless, under the terms of the health

plan as written and in operation, any processes, strategies, evidentiary standards, or other

factors used in applying the NQTL to mental health and substance use disorders in the

classification are comparable to, and are applied no more stringently than, the processes,

strategies, evidentiary standards, or other factors used in applying the NQTL with respect

to medical and surgical benefits in the same classification.

(e) All health plans must meet the requirements of the federal Mental Health Parity Act

of 1996, Public Law 104-204; Paul Wellstone and Pete Domenici Mental Health Parity and

Addiction Equity Act of 2008; the Affordable Care Act; and any amendments to, and federal

guidance or regulations issued under, those acts.

(f) The commissioner may require information from health plan companies to confirm

that mental health parity is being implemented by the health plan company. Information

required may include comparisons between mental health and substance use disorder

treatment and other medical conditions, including a comparison of prior authorization

requirements, drug formulary design, claim denials, rehabilitation services, and other

information the commissioner deems appropriate.

(g) Regardless of the health care provider's professional license, if the service provided

is consistent with the provider's scope of practice and the health plan company's credentialing

and contracting provisions, mental health therapy visits and medication maintenance visits

shall be considered primary care visits for the purpose of applying any enrollee cost-sharing

requirements imposed under the enrollee's health plan.

(h) All health plan companies offering health plans that provide coverage for alcoholism,

mental health, or chemical dependency benefits shall provide reimbursement for the benefits

delivered through the psychiatric Collaborative Care Model, which must include the following

Current Procedural Terminology or Healthcare Common Procedure Coding System billing

codes:

(1) 99492;

(2) 99493;

(3) 99494;

(4) G2214; and

(5) G0512.

This paragraph does not apply to managed care plans or county-based purchasing plans

when the plan provides coverage to public health care program enrollees under chapter

256B or 256L.

(i) The commissioner of commerce shall update the list of codes in paragraph (h) if any

alterations or additions to the billing codes for the psychiatric Collaborative Care Model

are made.

(j) "Psychiatric Collaborative Care Model" means the evidence-based, integrated

behavioral health service delivery method described at Federal Register, volume 81, page

80230, which includes a formal collaborative arrangement among a primary care team

consisting of a primary care provider, a care manager, and a psychiatric consultant, and

includes but is not limited to the following elements:

(1) care directed by the primary care team;

(2) structured care management;

(3) regular assessments of clinical status using validated tools; and

(4) modification of treatment as appropriate.

(k) By June 1 of each year
deleted text begin
, beginning June 1, 2021
deleted text end
, the commissioner of commerce
deleted text begin
, in

consultation with the commissioner of health,
deleted text end
shall submit a report on compliance and

oversight to the chairs and ranking minority members of the legislative committees with

jurisdiction over health and commerce. The report must:

(1) describe the commissioner's process for reviewing health plan company compliance

with United States Code, title 42, section 18031(j), any federal regulations or guidance

relating to compliance and oversight, and compliance with this section and section
62Q.53
;

(2) identify any enforcement actions taken by either commissioner during the preceding

12-month period regarding compliance with parity for mental health and substance use

disorders benefits under state and federal law, summarizing the results of any market conduct

examinations. The summary must include: (i) the number of formal enforcement actions

taken; (ii) the benefit classifications examined in each enforcement action; and (iii) the

subject matter of each enforcement action, including quantitative and nonquantitative

treatment limitations;

(3) detail any corrective action taken by either commissioner to ensure health plan

company compliance with this section, section
62Q.53
, and United States Code, title 42,

section 18031(j); and

(4) describe the information provided by either commissioner to the public about

alcoholism, mental health, or chemical dependency parity protections under state and federal

law.

The report must be written in nontechnical, readily understandable language and must be

made available to the public by, among other means as the commissioners find appropriate,

posting the report on department websites. Individually identifiable information must be

excluded from the report, consistent with state and federal privacy protections.

Sec. 47.

Minnesota Statutes 2024, section 62Q.51, subdivision 3, is amended to read:

Subd. 3.

Rate approval.

The premium rates and cost sharing requirements for each

option must be submitted to
deleted text begin
the commissioner of health or
deleted text end
the commissioner of commerce

as required by law. A health plan that includes lower enrollee cost sharing for services

provided by network providers than for services provided by out-of-network providers, or

lower enrollee cost sharing for services provided with prior authorization or second opinion

than for services provided without prior authorization or second opinion, qualifies as a

point-of-service option.

Sec. 48.

Minnesota Statutes 2024, section 62Q.556, subdivision 3, is amended to read:

Subd. 3.

Annual data reporting.

(a) Beginning April 1, 2024, a health plan company

must report annually to the commissioner of
deleted text begin
health
deleted text end
new text begin
commerce
new text end
:

(1) the total number of claims and total billed and paid amounts for nonparticipating

provider services, by service and provider type, submitted to the health plan in the prior

calendar year; and

(2) the total number of enrollee complaints received regarding the rights and protections

established by the No Surprises Act in the prior calendar year.

(b) The
deleted text begin
commissioners
deleted text end
new text begin
commissioner
new text end
of commerce
deleted text begin
and health
deleted text end
shall develop the form

and manner for health plan companies to comply with paragraph (a).

Sec. 49.

Minnesota Statutes 2024, section 62Q.556, subdivision 4, is amended to read:

Subd. 4.

Enforcement.

(a) Any provider or facility, including a health care provider or

facility pursuant to section
62A.63, subdivision 2
, or
62J.03, subdivision 8
, that is subject

to the relevant provisions of the No Surprises Act is subject to the requirements of this

section and section
62J.811
.

(b) The commissioner of commerce
deleted text begin
or health
deleted text end
shall enforce this section.

(c) If a health-related licensing board has cause to believe that a provider has violated

this section, it may further investigate and enforce the provisions of this section pursuant

to chapter 214.

Sec. 50.

Minnesota Statutes 2024, section 62Q.69, subdivision 2, is amended to read:

Subd. 2.

Procedures for filing a complaint.

(a) A complainant may submit a complaint

to a health plan company either by telephone or in writing. If a complaint is submitted orally

and the resolution of the complaint, as determined by the complainant, is partially or wholly

adverse to the complainant, or the oral complaint is not resolved to the satisfaction of the

complainant, by the health plan company within ten days of receiving the complaint, the

health plan company must inform the complainant that the complaint may be submitted in

writing. The health plan company must also offer to provide the complainant with any

assistance needed to submit a written complaint, including an offer to complete the complaint

form for a complaint that was previously submitted orally and promptly mail the completed

form to the complainant for the complainant's signature. At the complainant's request, the

health plan company must provide the assistance requested by the complainant. The

complaint form must include the following information:

(1) the telephone number of the health plan company member services or other

departments or persons equipped to advise complainants on complaint resolution;

(2) the address to which the form must be sent;

(3) a description of the health plan company's internal complaint procedure and the

applicable time limits; and

(4) the toll-free telephone number of
deleted text begin
either
deleted text end
the commissioner of
deleted text begin
health or
deleted text end
commerce

and notification that the complainant has the right to submit the complaint at any time to

the
deleted text begin
appropriate
deleted text end
commissioner for investigation.

(b) Upon receipt of a written complaint, the health plan company must notify the

complainant within ten business days that the complaint was received, unless the complaint

is resolved to the satisfaction of the complainant within the ten business days.

(c) Each health plan company must provide, in the member handbook, subscriber contract,

or certification of coverage, a clear and concise description of how to submit a complaint

and a statement that, upon request, assistance in submitting a written complaint is available

from the health plan company.

Sec. 51.

Minnesota Statutes 2024, section 62Q.69, subdivision 3, is amended to read:

Subd. 3.

Notification of complaint decisions.

(a) The health plan company must notify

the complainant in writing of its decision and the reasons for it as soon as practical but in

no case later than 30 days after receipt of a written complaint. If the health plan company

cannot make a decision within 30 days due to circumstances outside the control of the health

plan company, the health plan company may take up to 14 additional days to notify the

complainant of its decision. If the health plan company takes any additional days beyond

the initial 30-day period to make its decision, it must inform the complainant, in advance,

of the extension and the reasons for the extension.

(b) For group health plans, if the decision is partially or wholly adverse to the

complainant, the notification must inform the complainant of the right to appeal the decision

to the health plan company's internal appeal process described in section
62Q.70
and the

procedure for initiating an appeal.

(c) For individual health plans, if the decision is partially or wholly adverse to the

complainant, the notification must inform the complainant of the right to submit the complaint

decision to the external review process described in section
62Q.73
and the procedure for

initiating the external review process. Notwithstanding the provisions in this subdivision,

a health plan company offering individual coverage may instead follow the process for

group health plans outlined in paragraph (b).

(d) The notification must also inform the complainant of the right to submit the complaint

at any time to
deleted text begin
either
deleted text end
the commissioner of
deleted text begin
health or
deleted text end
commerce for investigation and the

toll-free telephone number of the
deleted text begin
appropriate
deleted text end
commissioner.

Sec. 52.

Minnesota Statutes 2024, section 62Q.71, is amended to read:

62Q.71 NOTICE TO ENROLLEES.

Each health plan company shall provide to enrollees a clear and concise description of

its complaint resolution procedure, if applicable under section
62Q.68, subdivision 1
, and

the procedure used for utilization review as defined under chapter 62M as part of the member

handbook, subscriber contract, or certificate of coverage. If the health plan company does

not issue a member handbook, the health plan company may provide the description in

another written document. The description must specifically inform enrollees:

(1) how to submit a complaint to the health plan company;

(2) if the health plan includes utilization review requirements, how to notify the utilization

review organization in a timely manner and how to obtain authorization for health care

services;

(3) how to request an appeal either through the procedures described in section
62Q.70
,

if applicable, or through the procedures described in chapter 62M;

(4) of the right to file a complaint with
deleted text begin
either
deleted text end
the commissioner of
deleted text begin
health or
deleted text end
commerce

at any time during the complaint and appeal process;

(5) of the toll-free telephone number of the
deleted text begin
appropriate
deleted text end
commissioner; and

(6) of the right, for individual and group coverage, to obtain an external review under

section
62Q.73
and a description of when and how that right may be exercised, including

that under most circumstances an enrollee must exhaust the internal complaint or appeal

process prior to external review. However, an enrollee may proceed to external review

without exhausting the internal complaint or appeal process under the following

circumstances:

(i) the health plan company waives the exhaustion requirement;

(ii) the health plan company is considered to have waived the exhaustion requirement

by failing to substantially comply with any requirements including, but not limited to, time

limits for internal complaints or appeals; or

(iii) the enrollee has applied for an expedited external review at the same time the enrollee

has applied for internal review under chapter 62M.

Sec. 53.

Minnesota Statutes 2024, section 62Q.73, subdivision 3, is amended to read:

Subd. 3.

Right to external review.

(a) Any enrollee or anyone acting on behalf of an

enrollee who has received an adverse determination may submit a written request for an

external review of the adverse determination, if applicable under section
62Q.68, subdivision

1
, or
62M.06
,
deleted text begin
to the commissioner of health if the request involves a health plan company

regulated by that commissioner or
deleted text end
to the commissioner of commerce
deleted text begin
if the request involves

a health plan company regulated by that commissioner
deleted text end
. Notification of the enrollee's right

to external review must accompany the denial issued by the insurer.

(b) Nothing in this section requires the commissioner of
deleted text begin
health or
deleted text end
commerce to

independently investigate an adverse determination referred for independent external review.

(c) If an enrollee requests an external review, the health plan company must participate

in the external review. The cost of the external review must be borne by the health plan

company.

(d) The enrollee must request external review within six months from the date of the

adverse determination.

Sec. 54.

Minnesota Statutes 2024, section 62Q.73, subdivision 10, is amended to read:

Subd. 10.

Data reporting.

The
deleted text begin
commissioners
deleted text end
new text begin
commissioner of commerce
new text end
shall make

available to the public, upon request, summary data on the decisions rendered under this

section, including the number of reviews heard and decided and the final outcomes. Any

data released to the public must not individually identify the enrollee initiating the request

for external review.

Sec. 55.

Minnesota Statutes 2024, section 62Q.81, subdivision 7, is amended to read:

Subd. 7.

Standard plans.

(a) A health plan company that offers individual health plans

must ensure that no less than one individual health plan at each level of coverage described

in subdivision 1, paragraph (b), clause (3), that the health plan company offers in each

geographic rating area the health plan company serves conforms to the standard plan

parameters determined by the commissioner under paragraph (e).

(b) An individual health plan offered under this subdivision must be:

(1) clearly and appropriately labeled as standard plans to aid the purchaser in the selection

process;

(2) marketed as standard plans and in the same manner as other individual health plans

offered by the health plan company; and

(3) offered for purchase to any individual.

(c) This subdivision does not apply to catastrophic plans, grandfathered plans, small

group health plans, large group health plans, health savings accounts, qualified high

deductible health benefit plans, limited health benefit plans, or short-term limited-duration

health insurance policies.

(d) Health plan companies must meet the requirements in this subdivision separately for

plans offered through MNsure under chapter 62V and plans offered outside of MNsure.

(e) The commissioner of commerce
deleted text begin
, in consultation with the commissioner of health,
deleted text end

must annually determine standard plan parameters, including but not limited to cost-sharing

structure and covered benefits, that comprise a standard plan in Minnesota.

(f) Notwithstanding section
62A.65, subdivision 2
, a health plan company may

discontinue offering a health plan under this subdivision if, three years after the date the

plan is initially offered, the plan has fewer than 75 enrollees. A health plan company

discontinuing a health plan under this paragraph may discontinue a health plan that has

fewer than 75 enrollees if it:

(1) provides notice of the plan's discontinuation in writing, in a form prescribed by the

commissioner, to each enrollee of the plan at least 90 calendar days before the date the

coverage is discontinued;

(2) offers on a guaranteed issue basis to each enrollee the option to purchase an individual

health plan currently being offered by the health plan company for individuals in that

geographic rating area. An enrollee who does not select an option shall be automatically

enrolled in the individual health plan closest in actuarial value to the enrollee's current plan;

and

(3) acts uniformly without regard to any health status-related factor of an enrollee or an

enrollee's dependents who may become eligible for coverage.

Sec. 56.

Minnesota Statutes 2024, section 62U.04, subdivision 13, is amended to read:

Subd. 13.

Expanded access to and use of the all-payer claims data.

(a) The

commissioner or the commissioner's designee shall make the data submitted under

subdivisions 4, 5, 5a, and 5b, including data classified as private or nonpublic, available to
new text begin
:

(1)
new text end
individuals and organizations engaged in research on, or efforts to effect transformation

in, health care outcomes, access, quality, disparities, or spending, provided the use of the

data serves a public benefit
new text begin
; and (2) the commissioner of commerce, subject to the data use

requirements under subdivision 11, paragraph (b), to perform health insurance oversight

duties
new text end
.

new text begin

(b)
new text end
Data made available under this subdivision may not be used to:

(1) create an unfair market advantage for any participant in the health care market in

Minnesota, including health plan companies, payers, and providers;

(2) reidentify or attempt to reidentify an individual in the data; or

(3) publicly report contract details between a health plan company and provider and

derived from the data.

deleted text begin

(b)
deleted text end
new text begin
(c)
new text end
To implement
deleted text begin
paragraph
deleted text end
new text begin
paragraphs
new text end
(a)
new text begin
and (b)
new text end
, the commissioner shall:

(1) establish detailed requirements for data access; a process for data users to apply to

access and use the data; legally enforceable data use agreements to which data users must

consent; a clear and robust oversight process for data access and use, including a data

management plan, that ensures compliance with state and federal data privacy laws;

agreements for state agencies and the University of Minnesota to ensure proper and efficient

use and security of data; and technical assistance for users of the data and for stakeholders;

(2) develop a fee schedule to support the cost of expanded access to and use of the data,

provided the fees charged under the schedule do not create a barrier to access or use for

those most affected by disparities; and

(3) create a research advisory group to advise the commissioner on applications for data

use under this subdivision, including an examination of the rigor of the research approach,

the technical capabilities of the proposed user, and the ability of the proposed user to

successfully safeguard the data.

Sec. 57.

Minnesota Statutes 2024, section 62W.06, is amended by adding a subdivision

to read:

new text begin

Subd. 4.

new text end

new text begin

Data sharing.

new text end

new text begin

Notwithstanding subdivision 2, paragraph (d), the commissioner

must provide the data under subdivision 2, paragraph (a), to the commissioner of health.

The commissioner of health must maintain data received under this section in a manner

consistent with the data's classification under subdivision 2, paragraph (d).

new text end

Sec. 58.
new text begin
REVISOR INSTRUCTION.
new text end

new text begin

(a) Except as otherwise provided in this act, the revisor of statutes shall substitute the

term "commissioner of commerce" for the term "commissioner of health" wherever the

term appears in (1) Minnesota Statutes, chapters 62D, except section 62D.02, subdivision

12; 62L; and 62Q, except sections 62Q.19 and 62Q.33; (2) Minnesota Statutes, sections

60B.15, 60B.191, 60B.20, 62K.09, 62K.10, 62K.105, 62K.12, 62K.13, 62K.14, 62W.05,

256B.69, and 256B.692; (3) Minnesota Rules, chapters 4685, 2740, 4688; and (4) Minnesota

Rules, part 9510.2020, subparts 3 and 8, item (C). The revisor shall also make any necessary

grammatical changes to verbs or other words to conform with this substitution.

new text end

new text begin

(b) The revisor of statutes shall remove the term "commissioner of health" wherever the

term appears in Minnesota Rules, chapter 2730.

new text end

ARTICLE 5

REINSURANCE

Section 1.

Minnesota Statutes 2024, section 62E.23, subdivision 1, is amended to read:

Subdivision 1.

Administration of plan.

(a) The association is Minnesota's reinsurance

entity to administer the state-based reinsurance program referred to as the Minnesota premium

security plan.

(b) The association may apply for any available federal funding for the plan. All funds

received by or appropriated to the association shall be deposited in the premium security

plan account in section 62E.25, subdivision 1. The association shall notify the chairs and

ranking minority members of the legislative committees with jurisdiction over health and

human services and insurance within ten days of receiving any federal funds.

(c) The association must collect or access data from an eligible health carrier that are

necessary to determine reinsurance payments, according to the data requirements under

subdivision 5, paragraph (c).

(d) The board must not use any funds allocated to the plan for staff retreats, promotional

giveaways, excessive executive compensation, or promotion of federal or state legislative

or regulatory changes.
new text begin
Nothing in this paragraph prohibits the association from providing

technical assistance or information regarding the association of the Minnesota premium

security plan.
new text end

(e) For each applicable benefit year, the association must notify eligible health carriers

of reinsurance payments to be made for the applicable benefit year no later than June 30 of

the year following the applicable benefit year.

(f) On a quarterly basis during the applicable benefit year, the association must provide

each eligible health carrier with the calculation of total reinsurance payment requests.

(g)
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By August 15 of the year following the applicable benefit year, the association must

disburse all applicable reinsurance payments to an eligible health carrier.
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new text begin
For benefit year

2027, the commissioner must transfer the total amount of money necessary for the association

to pay all applicable reinsurance payments to each eligible health carrier by August 15,

2028.
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(h) For benefit year 2027, the association must disburse applicable reinsurance payments

to an eligible health carrier no later than August 31, 2028.

new text end

Sec. 2.

Minnesota Statutes 2025 Supplement, section 62E.23, subdivision 1a, is amended

to read:

Subd. 1a.

2028 assessment on group health carriers.

(a) An assessment is imposed in

calendar year 2028 on group health carriers operating
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under the
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in
new text end
Minnesota
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premium

security plan in
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during
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benefit year 2027. This is a onetime assessment.

(b) By May 1, 2028, the association must provide each group health carrier with an

estimate of the carrier's assessment under paragraph (a).

(c) By June 30, 2028, the association must
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notify each group health carrier of the carrier's

assessment amount under paragraph (a). The association must determine
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propose
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each

carrier's assessment amount, in consultation with the commissioner, based on the group

health carrier's portion of the total premiums for group health plans written in Minnesota

for benefit year 2027.
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The commissioner must approve the carrier's assessment amount.
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The
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association must establish the
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final
new text end
assessment amount for each group health plan
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so
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must ensure
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that the aggregate assessment amount collected from group health plans under

this subdivision equals the amount necessary for the appropriations and transfers under

section
62E.25, subdivision 1
.
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By July 25, 2028, the association must notify each group

health carrier of the carrier's proposed assessment amount under paragraph (a).
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(d) Subject to paragraph (e), each group health carrier must pay the assessment under

paragraph (a) to the
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association
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commissioner
new text end
by August
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1
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new text begin
29
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, 2028
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, for deposit in the

premium security plan account created under section 62E.25
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. A group health plan must pay

the assessment in the manner determined by the commissioner.

(e) A group health carrier may apply to the commissioner to defer all or part of the

assessment imposed under paragraph (a). The application must be submitted to the

commissioner by May 15, 2028. The commissioner may defer all or part of the assessment

if the commissioner determines the payment of the assessment places the group health

carrier in a financially impaired condition. The commissioner may deny an application for

deferral under this paragraph. No later than June 15, 2028, the commissioner must notify

the association and the group health carrier whether the assessment deferral is approved or

denied. If the commissioner approves the deferral request, the notice must include the amount

of and due date for the deferred portion of the assessment. If all or part of the assessment

is deferred, the association must include the amount deferred in the other group health

carriers' assessments in a proportionate manner consistent with this subdivision.
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The
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A
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group health carrier that receives a deferral is liable to the
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association
deleted text end

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commissioner
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for the

amount deferred and is prohibited from receiving or becoming entitled to a reinsurance

payment under the Minnesota premium security plan until the group health carrier has paid

the deferred assessment.

(f) If the association determines the assessment imposed under paragraph (a) exceeds

or is less than the amount necessary to operate and administer the Minnesota premium

security plan and issue reinsurance payments, the association must require group health

carriers to pay an additional amount or the association must issue a refund to the group

health carriers. The association must determine the accuracy of the assessment by
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May 30
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March 15
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, 2029.

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(g) By August 15, 2028, the association must remit the assessments collected under this

subdivision to the commissioner for deposit in the premium security plan account created

under section
62E.25
.

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Sec. 3.

Minnesota Statutes 2025 Supplement, section 62E.23, subdivision 2, is amended

to read:

Subd. 2.

Payment parameters.

(a) The board must design and adjust the payment

parameters to ensure the payment parameters:

(1) will stabilize or reduce premium rates in the individual market;

(2) will increase participation in the individual market;

(3) will improve access to health care providers and services for those in the individual

market;

(4) mitigate the impact high-risk individuals have on premium rates in the individual

market;

(5) take into account any federal funding available for the plan;

(6) for benefit year 2027, take into account the assessment under subdivision 1a;

(7) ensure the premium security plan account created under section
62E.25, subdivision

1, has sufficient money to ensure MNsure's stable operation after taking into account the

Minnesota premium security plan's effect on MNsure's funding; and

(8) take into account the total amount available to fund the plan.

(b) The attachment point for the plan is the threshold amount for claims costs incurred

by an eligible health carrier for an enrolled individual's covered benefits in a benefit year,

beyond which the claims costs for benefits are eligible for reinsurance payments. The

attachment point shall be set by the board at $50,000 or more, but not exceeding the

reinsurance cap.

(c) The coinsurance rate for the plan is the rate at which the association will reimburse

an eligible health carrier for claims incurred for an enrolled individual's covered benefits

in a benefit year above the attachment point and below the reinsurance cap. The coinsurance

rate shall be set by the board at a rate between 50 and 80 percent.

(d) The reinsurance cap is the threshold amount for claims costs incurred by an eligible

health carrier for an enrolled individual's covered benefits, after which the claims costs for

benefits are no longer eligible for reinsurance payments. The reinsurance cap shall be set

by the board at $250,000 or less.

(e) The board may adjust the payment parameters to the extent necessary to secure

federal approval of the state innovation waiver request in Laws 2017, chapter 13, article 1,

section 8.

(f) For purposes of paragraph (a), clause (7), the
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association
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commissioner
new text end
must consult

with the commissioner of management and budget and the board of directors of MNsure to

determine the amount of funding necessary to ensure MNsure's stable operation.

Sec. 4.

Minnesota Statutes 2025 Supplement, section 297I.20, subdivision 7, is amended

to read:

Subd. 7.

Reinsurance credit.

Beginning with taxable years after December 31, 2028,

a taxpayer may claim a credit against the premiums tax imposed under this chapter equal

to the amount of the assessment paid by the taxpayer under section
62E.23
in the immediately

preceding calendar year. If the amount of the credit exceeds the liability for tax under this

chapter, the commissioner must refund the excess to the
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insurance company
deleted text end
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taxpayer
new text end
. An

amount sufficient to pay the refunds under this section is appropriated to the commissioner

from the general fund. The credit under this subdivision does not affect the calculation of

fire state aid under section
477B.03
and police state aid under section
477C.03
. The

commissioner of commerce must annually provide to the commissioner a list of assessments

paid by taxpayers under section
62E.23
by March 1 of the calendar year following the

assessment.

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EFFECTIVE DATE.

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This section is effective for taxable years beginning after December

31, 2028.

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APPENDIX

Repealed Minnesota Statutes: 26-08197

56.08 ANNUAL LICENSE FEE.

Every licensee shall, on or before the 20th day of each December, pay to the commissioner the sum of $150 as an annual license fee for the next succeeding calendar year.

62J.86 DEFINITIONS.

Subd. 2.

Advisory council.

"Advisory council" means the Prescription Drug Affordability Advisory Council established under section
62J.88
.

62J.88 PRESCRIPTION DRUG AFFORDABILITY ADVISORY COUNCIL.

Subdivision 1.

Establishment.

The governor shall appoint a 18-member stakeholder advisory council to provide advice to the board on drug cost issues and to represent stakeholders' views. The governor shall appoint the members of the advisory council based on the members' knowledge and demonstrated expertise in one or more of the following areas: the pharmaceutical business; practice of medicine; patient perspectives; health care cost trends and drivers; clinical and health services research; and the health care marketplace.

Subd. 2.

Membership.

The council's membership shall consist of the following:

(1) two members representing patients and health care consumers;

(2) two members representing health care providers;

(3) one member representing health plan companies;

(4) two members representing employers, with one member representing large employers and one member representing small employers;

(5) one member representing government employee benefit plans;

(6) one member representing pharmaceutical manufacturers;

(7) one member who is a health services clinical researcher;

(8) one member who is a pharmacologist;

(9) one member representing the commissioner of health with expertise in health economics;

(10) one member representing pharmaceutical wholesalers;

(11) one member representing pharmacy benefit managers;

(12) one member from the Rare Disease Advisory Council;

(13) one member representing generic drug manufacturers;

(14) one member representing pharmaceutical distributors; and

(15) one member who is an oncologist who is not employed by, under contract with, or otherwise affiliated with a hospital.

Subd. 3.

Terms.

(a) The initial appointments to the advisory council must be made by January 1, 2024. The initial appointed advisory council members shall serve staggered terms of two, three, or four years, determined by lot by the secretary of state. Following the initial appointments, the advisory council members shall serve four-year terms.

(b) Removal and vacancies of advisory council members shall be governed by section
15.059
.

Subd. 4.

Compensation.

Advisory council members may be compensated according to section
15.059
, except that those advisory council members designated in subdivision 2, clauses (10) to (15), must not be compensated.

Subd. 5.

Meetings.

Meetings of the advisory council are subject to chapter 13D. The advisory council shall meet publicly at least every three months to advise the board on drug cost issues related to the prescription drug product information submitted to the board under section
62J.90
.

Subd. 6.

Exemption.

Notwithstanding section
15.059
, the advisory council shall not expire.

332A.02 DEFINITIONS.

Subd. 2.

Accreditation.

"Accreditation" means certification as an accredited credit counseling provider by the Council on Accreditation, the Bureau Veritas Certification North America, Inc., or BSI Management Systems America, Inc.

332B.02 DEFINITIONS.

Subd. 2.

Accreditation.

"Accreditation" means certification as an accredited credit counseling provider by the Council on Accreditation, the Bureau Veritas Certification North America, Inc., or BSI Management Systems America, Inc.