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SF3434 (Legislative Session 94 (2025-2026))

For-profit entities participating in certain health markets prohibition elimination

Related bill: HF3035

AI Generated Summary

Purpose of the Bill

This bill intends to modify existing health insurance regulations in Minnesota to allow for-profit entities to participate in certain health insurance markets. The main goal is to increase competition and potentially improve financial viability and service provision within these markets.

Main Provisions

  • Eliminating Prohibition on For-Profit Entities: The bill proposes to allow for-profit entities to participate in health insurance markets that were previously restricted to nonprofit organizations. This change aims to open up these markets to more competitors, which could lead to more options for consumers and potential cost efficiencies.

  • Amendment to Participation Rules: The amendment specifically targets health maintenance organizations (HMOs) and their participation in government health programs like Medical Assistance and MinnesotaCare. It keeps the requirement for HMOs to engage with these programs as part of their operation permits.

  • Defining Geographic Regions: It specifies that health maintenance organizations must serve individuals eligible for these programs within specific geographic regions. These regions are to be defined by the commissioner of human services through requests for proposals.

Significant Changes

  • Repeal of Existing Statute: The bill includes the repeal of a Minnesota Statute (section 43A.24 subdivision 4), which likely previously enforced the prohibition of for-profit entities in these markets. By repealing this statute, the bill removes legal barriers that prevented for-profit companies from participating in these health insurance programs.

Relevant Terms

health insurance, for-profit entities, health maintenance organizations, Medical Assistance, MinnesotaCare, geographic regions, certificate of authority, nonprofit corporation, Minnesota Statutes, competition in healthcare markets.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
April 23, 2025SenateFloorActionIntroduction and first reading
April 23, 2025SenateFloorActionIntroduction and first reading
April 23, 2025SenateFloorActionReferred toCommerce and Consumer Protection

Citations

 
[
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This bill relates to the participation requirements for health maintenance organizations (HMOs) in government programs under section 62D.04.",
      "modified": [
        "Clarifies the conditions under which nonprofit HMOs must participate in medical assistance and MinnesotaCare programs."
      ]
    },
    "citation": "62D.04",
    "subdivision": "subdivision 5"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        "Repeals the requirement related to certain health insurance provisions."
      ],
      "summary": "Repeals the section under Minnesota Statutes 43A.24, subdivision 4.",
      "modified": [
        ""
      ]
    },
    "citation": "43A.24",
    "subdivision": "subdivision 4"
  }
]

Sponsors