Purpose of the Bill

The bill aims to clarify that direct primary care agreements are not classified as insurance in the state of Minnesota. It intends to establish a legal framework for these agreements, ensuring they are treated distinctly from traditional health insurance products.

Main Provisions

• Non-insurance Classification: Direct primary care agreements are not to be considered health plans, accident and sickness insurance policies, subscriber contracts, health maintenance, or benefit certificates as regulated under existing insurance and health coverage chapters.
• Regulatory Exemption: These agreements and involved primary care providers are exempt from the regulations applicable to insurance products under chapters 60A to 72A.
• Agreement Criteria: A direct primary care agreement must:
  1. Be written between a patient (or their legal representative) and a primary care provider.
  2. Allow termination by either party without incurring penalties, with a maximum notice period of 60 days.
  3. Clearly describe the healthcare services offered in return for a periodic fee.
  4. Outline the periodic fee and any possible additional charges.
  5. Allow a third party to pay the fees on behalf of the patient.
  6. Prohibit the provider from charging extra for services covered by the periodic fee.
  7. Clearly state that the agreement does not represent health insurance.

Significant Changes to Existing Law

The bill specifies that direct primary care agreements should not be governed or regulated as insurance, a distinction that sets a new precedent for healthcare arrangements in Minnesota. This means that such agreements will operate outside the usual regulations that apply to health insurance policies.

Relevant Terms

direct primary care agreements, not insurance, health plan, primary care provider, exemption, periodic fee, termination fee, health coverage, patient, legal representative, healthcare services.