HMO regulations update

A bill for an act

relating to health; updating HMO regulations; amending Minnesota Statutes 2024,

sections 13.7191, subdivision 4; 60D.15, subdivision 3; 60D.21, subdivisions 1,

3; 60D.23; 62D.221, subdivision 1.

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

Section 1.

Minnesota Statutes 2024, section 13.7191, subdivision 4, is amended to read:

Subd. 4.

Insurance holding company systems; various insurance data.

Disclosure

of information obtained by the commissioner of commerce
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or health
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under section
60D.18
,

60D.19
, or
60D.20
is governed by section
60D.22
.

Sec. 2.

Minnesota Statutes 2024, section 60D.15, subdivision 3, is amended to read:

Subd. 3.

Commissioner.

The term "commissioner" means the commissioner of commerce
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or, for the purposes of regulating health maintenance organizations, as defined in section

62D.02, subdivision 4, the commissioner of health
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, the
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relevant
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commissioner's deputies,

or the Commerce
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or Health
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Department, as appropriate.

Sec. 3.

Minnesota Statutes 2024, section 60D.21, subdivision 1, is amended to read:

Subdivision 1.

Power of commissioner.

Subject to the limitation contained in this section

and in addition to the powers that the commissioner has under chapter 60A
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or 62D
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relating

to the examination of insurers, the commissioner shall also have the power to examine an

insurer registered under section
60D.19
and its affiliates to ascertain the financial condition

of the insurer, including the enterprise risk to the insurer by the ultimate controlling party,

or by an entity or combination of entities within the insurance holding company system, or

by the insurance holding company system on a consolidated basis.

Sec. 4.

Minnesota Statutes 2024, section 60D.21, subdivision 3, is amended to read:

Subd. 3.

Expenses.

Each registered insurer producing for examination records, books,

and papers pursuant to subdivision 1 is liable for and shall pay the expense of the examination

in accordance with section
60A.03
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or 62D.14
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.

Sec. 5.

Minnesota Statutes 2024, section 60D.23, is amended to read:

60D.23 RULES.

The commissioner may adopt the rules and orders that are necessary to carry out the

provisions of this chapter.
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Health maintenance organizations are subject to Minnesota Rules,

chapter 2720, and must comply with the provisions of chapter 2720 applicable to insurers,

unless the commissioner of health adopts rules to implement this chapter. Notwithstanding

section 14.125, the authority to adopt rules under this section does not expire.
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Sec. 6.

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
,
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and
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60A.161
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,
60D.17
,
60D.18
, and
60D.20
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and must comply with the

provisions of these sections applicable to insurers.
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In applying these sections to health

maintenance organizations, "commissioner" means the commissioner of health. 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 health adopts rules to implement this

subdivision.
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