Purpose of the Bill

The bill aims to clarify the legal status of direct primary care agreements in Minnesota. It specifies that these agreements are not considered health insurance and establishes the groundwork for their regulation independently from traditional health insurance frameworks.

Main Provisions

• Exemption from Insurance Regulations: Direct primary care agreements are explicitly stated not to be health insurance, thereby exempting them from the regulations governing insurance under Minnesota law.
• Definition of Direct Primary Care Agreement: The bill defines a direct primary care agreement as a written contract between a patient and a primary care provider. This agreement:
  1. Allows either party to terminate the contract in writing without penalties, possibly with a notice not exceeding 60 days.
  2. Details the healthcare services provided for a recurring fee.
  3. Stipulates all costs, including the periodic fee and any additional charges.
  4. Allows a third party to cover the expenses.
  5. Prevents the provider from charging extra for services already covered by the periodic fee.
  6. Clearly indicates that the agreement is not a form of health insurance.

Significant Changes to Existing Law

• The bill introduces statutory language clarifying that direct primary care agreements do not fall under the traditional insurance regulatory framework, making them distinct from health plans or insurance policies governed by specific chapters in the Minnesota Statutes.

Relevant Terms

direct primary care agreements, health insurance, primary care provider, healthcare services, periodic fee, exemption from regulation, patient rights, non-penalty termination, Minnesota Statutes chapter 62A.