Purpose of the Bill

The purpose of this bill is to update and clarify regulations concerning Health Maintenance Organizations (HMOs) in Minnesota. It seeks to amend several sections of the Minnesota Statutes to ensure proper oversight and regulatory compliance of HMOs under the appropriate state departments.

Main Provisions

• Disclosure of Insurance Data: The bill regulates the disclosure of information related to insurance holding company systems. It specifies that such disclosures will be governed under a particular section (60D.22) of the statutes.

• Commissioner's Role: The bill clarifies the roles of the Commissioners of Commerce and Health regarding the regulation of HMOs. It specifies that for HMOs, the regulatory responsibilities will fall under the Commissioner of Health and their departments or deputies as required.

• Examination Powers: The bill outlines the powers of the commissioners to examine insurers and their affiliates to determine their financial conditions, including risks posed by the parent entity or other entities within the insurance holding system.

• Expenses for Examinations: It specifies that registered insurers must bear the cost of examinations that the Commissioner conducts, in compliance with existing standards.

• Rulemaking Authority: The bill provides authority to both the Commissioner of Commerce and the Commissioner of Health to adopt necessary rules and orders to implement the provisions of the relevant chapters.

• HMO Compliance: It mandates that health maintenance organizations must comply with specific insurance statutes and rules applicable to insurers unless specific rules for HMOs are adopted by the Commissioner of Health.

Significant Changes to Existing Law

• The bill explicitly assigns the regulation of HMOs to the Commissioner of Health, delineating the regulatory responsibilities between the Departments of Commerce and Health.

• It enhances the examination scope for the financial assessment of insurers, making it clear that the financial risks posed by controlling parties of insurance holding companies must be considered.

• By mandating compliance with certain insurance provisions, the bill ensures that HMOs follow consistent regulatory standards to protect consumers and the stability of insurance markets.

Relevant Terms

health maintenance organizations, HMOs, Commissioner of Health, Commissioner of Commerce, insurance holding company, examination of insurers, disclosure of information, regulatory compliance, rulemaking authority.