MN HF3066

Amends Minnesota Statutes 2008, section 62D.08, to require health maintenance organizations to directly allocate administrative expenses to specific lines of business or products and submit information using a reporting template provided by the commissioner of health, effective January 1, 2012.

Requires health maintenance organizations to allocate investment income based on cumulative net income over time by business line or product and submit this information using the commissioner's reporting template.

Establishes the Advisory Group on Administrative Expenses to develop detailed standards and procedures for examining the reasonableness of administrative expenses by publicly funded programs, with membership including the commissioners of health, human services, and commerce, plus representatives of health maintenance organizations and county-based purchasers.

Directs the Advisory Group to make recommendations on consistent reporting requirements and standards for examining expense reasonableness, with a report due to the commissioner of health and legislature by July 1, 2011; the advisory group expires June 30, 2012.

Appropriates $100,000 from the general fund to the commissioner of health in fiscal year 2011 to support the advisory group.