MN HF3663

Amends Minnesota Statutes 2008, section 256B.69, subdivision 5i, to regulate prepaid health plan administrative expenses and loss ratios.

Limits managed care plan and county-based purchasing plan administrative costs to not exceed 5 percent above the previous calendar year's actual administrative spending as a percentage of total revenue, with penalties for excess spending of amounts over 105 percent.

Requires prepaid health plans to meet a minimum loss ratio of not less than 91 percent, calculated as direct patient care expenses divided by total amounts paid by the commissioner to the plan.

Allows prepaid health plans to include provisions requiring free services to uninsured, low-income persons in bids if necessary to meet the 91 percent loss ratio requirement.

Effective date is January 1, 2011.