SF2477 (Legislative Session 94 (2025-2026))
Health insurance, Medicare supplement benefits and prescription drugs provisions modifications
Related bill: HF2403
AI Generated Summary
The bill, Senate File No. 2477, seeks to amend various provisions in Minnesota's insurance laws, particularly regarding Medicare supplement benefits, the renewability and discontinuation of health plans, and community rating requirements. The bill includes amendments to Minnesota Statutes sections 62A.31, 62A.65, 62D.12, and 62D.121.
Key Provisions:
Community Rating Adjustments for Medicare Supplement Policies:
- Requires insurers offering Medicare supplement policies to use a community rate for both newly issued and renewed policies.
- The community rate may account for factors such as benefit design differences, geographic variations (if pre-approved), premium discounts for healthy behaviors, and premium increases for late enrollees.
- Establishes specific phase-in compliance schedules for insurers in counties outside the Twin Cities metropolitan area.
Medicare Supplement Open Enrollment Restrictions:
- Insurance carriers cannot sell or issue Medicare supplement policies outside of defined enrollment periods.
Guaranteed Renewability of Individual Health Plans:
- Individual health plans must be guaranteed renewable, meaning insurers cannot refuse renewal except for a few specific reasons such as nonpayment of premiums, fraud, misrepresentation, or if the enrollee moves out of the coverage area.
- Establishes explicit circumstances under which an insurer can discontinue an individual health plan, including:
- Providing written notice to the relevant regulatory authorities and policyholders.
- Offering an alternative plan on a guaranteed-issue basis.
- Obtaining approval from the Commissioner of Commerce before discontinuation.
Discontinuation of Individual Health Plans:
- Insurers must provide 90 days' notice to policyholders before discontinuing an individual health plan.
- The Commissioner of Commerce has authority to disapprove a discontinuation if it is deemed not in the best interest of Minnesota policyholders.
Health Maintenance Organization (HMO) Coverage Termination Rules:
- HMOs may only cancel or fail to renew coverage under defined circumstances, including nonpayment, fraud, or misrepresentation by the enrollee.
- Requires 30 or 90 days’ prior notice to enrollees, depending on the reason for termination.
Replacement Coverage Requirement:
- If an HMO terminates a member’s individual coverage for reasons other than nonpayment, fraud, or relocation, the insurer must offer a replacement policy without preexisting condition exclusions or evidence of insurability.
Summary:
The bill strengthens consumer protections by ensuring stability and transparency in health plan renewals and discontinuations, limits insurers’ ability to discriminate based on health factors, mandates consistent pricing practices for Medicare supplement plans, and reinforces notification and regulatory review requirements for plan withdrawals.
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 12, 2025 | Senate | Floor | Action | Introduction and first reading | |
| March 12, 2025 | House | Floor | Action | Introduction and first reading | |
| March 12, 2025 | House | Floor | Action | Referred to | Commerce and Consumer Protection |
| March 12, 2025 | Senate | Floor | Action | Referred to | Commerce and Consumer Protection |
| March 26, 2025 | Senate | Floor | Action | Comm report: To pass as amended and re-refer to | Health and Human Services |
| April 02, 2025 | Senate | Floor | Action | Comm report: To pass as amended and re-refer to | Commerce and Consumer Protection |
| Senate | Note | Action | HF substituted in committee |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill modifies the definition of 'commissioner' in the context of regulating health maintenance organizations.",
"modified": [
"Adjusts the term 'commissioner' to include deputies or the Commerce or Health Department as appropriate."
]
},
"citation": "60D.15",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill modifies the power of the commissioner to examine insurers.",
"modified": [
"Clarifies the scope and conditions under which the commissioner can examine insurers and their affiliates."
]
},
"citation": "60D.21",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill modifies the expenses related to an insurer's examination.",
"modified": [
"Clarifies the financial responsibility for examination expenses of registered insurers."
]
},
"citation": "60D.21",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill provides rule-making authority to the commissioners of commerce and health.",
"modified": [
"Affirms the authority of both commissioners to adopt necessary rules and orders."
]
},
"citation": "60D.23",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill modifies the requirements related to community rates for Medicare coverage.",
"modified": [
"Details factors that can be considered in the community rate calculation."
]
},
"citation": "62A.31",
"subdivision": "1r"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill relates to the applicability of individual health plans.",
"modified": [
"Clarifies the conditions under which individual health plans are offered or renewed to Minnesota residents."
]
},
"citation": "62A.65",
"subdivision": "1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill relates to the guaranteed renewal of individual health plans.",
"modified": [
"Specifies conditions under which a health carrier may refuse to renew an individual health plan."
]
},
"citation": "62A.65",
"subdivision": "2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill modifies the conditions under which health maintenance organizations can cancel or not renew coverage.",
"modified": [
"Deletes specific reasons previously allowed for cancellation or nonrenewal of coverage."
]
},
"citation": "62D.12",
"subdivision": "2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill dictates the notice requirements for cancellation or nonrenewal of coverage by health maintenance organizations.",
"modified": [
"Details the timing requirements for cancellation notice and exceptions to these notices."
]
},
"citation": "62D.12",
"subdivision": "2a"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill outlines the reporting requirements by covered entities to the commissioner.",
"modified": [
"Includes detailed information about 340B transactions that need to be reported annually."
]
},
"citation": "62J.461",
"subdivision": "3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill describes enforcement measures and exceptions for reporting purposes.",
"modified": [
"Describes penalties for late reporting and criteria for granting exceptions."
]
},
"citation": "62J.461",
"subdivision": "4"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill mandates a publicly posted list of drugs of substantial public interest.",
"modified": [
"Establishes criteria for what constitutes substantial public interest in drugs and the notification process."
]
},
"citation": "62J.84",
"subdivision": "10"
}
]