HF1724

HF1724 (Legislative Session 94 (2025-2026))

Direct primary care service agreements established.

Related bill: SF1288

AI Generated Summary

This bill proposes the establishment and regulation of Direct Primary Care (DPC) Service Agreements in Minnesota. The key provisions of the bill include:

Definition & Exemption from Insurance Laws
- A direct primary care (DPC) service agreement is not considered insurance and is therefore not subject to typical insurance regulations.
- Health care providers offering DPC agreements do not need to obtain an insurance license.
Direct Primary Care Agreement Requirements
- Must be a written and signed contract between the provider and patient.
- Specifies covered primary care services, monthly fee, and duration of the agreement.
- Cannot be automatically renewed.
- Must clearly state that it is not health insurance and does not satisfy federal insurance mandates.
Patient Acceptance & Termination
- Providers cannot refuse patients based on health status, but they may decline patients if they are at full capacity, cannot meet the patient’s medical needs, or if the patient has terminated an agreement within the past year.
- Patients may cancel anytime with written notice.
- Providers may terminate agreements for non-payment, fraud, or abusive behavior.
- If a practice ceases operations, it must provide sufficient notice for patients to find new care.
Fee Structure & Payments
- The monthly direct fee must cover all services and remain the same for all patients regardless of health status or gender.
- Patients may prepay up to 12 months, but funds must be held in trust and refunded if the agreement is canceled.
- Fee increases can only occur once per year with 60 days' notice.
Regulation of Business Practices
- DPC providers cannot bill insurance companies for services covered under a direct agreement.
- Advertising must be truthful and cannot misrepresent the agreement.
- Violations constitute unprofessional conduct and may lead to disciplinary actions.
Flexibility for Providers
- Providers may offer both DPC agreements and separate services under insurance contracts.

The bill essentially legalizes and standardizes Direct Primary Care (DPC) models in Minnesota, allowing patients to contract directly with primary care providers outside of the traditional insurance framework.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 26, 2025	House	Floor	Action	Introduction and first reading, referred to	Commerce Finance and Policy
February 26, 2025	House	Floor	Action	Introduction and first reading, referred to	Commerce Finance and Policy

Citations

[
  {
    "analysis": {
      "added": [
        "Added a new category under which certain agreements are not considered health plans."
      ],
      "removed": [],
      "summary": "This legislation modifies the definition of what constitutes a health plan under section 62A.011.",
      "modified": [
        "Clarifies the types of insurance that are excluded from the definition of a health plan."
      ]
    },
    "citation": "62A.011",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        "Explanation that direct primary care service agreements are not considered insurance."
      ],
      "removed": [],
      "summary": "This bill clarifies the non-insurance status of direct primary care service agreements under section 62A.01.",
      "modified": []
    },
    "citation": "62A.01",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Indirect reference in context of exclusions from health plan definition, describing credit accident and health insurance.",
      "modified": []
    },
    "citation": "62B.02",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
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      "summary": "Reference to blanket accident and sickness insurance definitions.",
      "modified": []
    },
    "citation": "62A.11",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference in context of long-term care policy exclusion from health plan definition.",
      "modified": []
    },
    "citation": "62A.46",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference in context of long-term care policy exclusion from health plan definition.",
      "modified": []
    },
    "citation": "62S.01",
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    "analysis": {
      "added": [],
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      "summary": "Related to issuance as a supplement to Medicare under various sections.",
      "modified": []
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    "citation": "62A.3099",
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  {
    "analysis": {
      "added": [],
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      "summary": "Related to issuance as a supplement to Medicare under various sections.",
      "modified": []
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    "citation": "62A.44",
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    "analysis": {
      "added": [],
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      "summary": "Reference regarding companion policies to health maintenance contracts.",
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    },
    "citation": "62D.12",
    "subdivision": "subdivision 1a"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Federal Social Security Act reference in context of Medicare supplement.",
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    },
    "citation": "1833",
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  },
  {
    "analysis": {
      "added": [],
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      "summary": "Federal Social Security Act reference in context of Medicare supplement.",
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  },
  {
    "analysis": {
      "added": [],
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      "summary": "Federal Social Security Act reference regarding Medicare Advantage.",
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    },
    "citation": "1851 et seq.",
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  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Federal Social Security Act reference regarding Medicare drug programs.",
      "modified": []
    },
    "citation": "1860D-1 et seq.",
    "subdivision": ""
  }
]