S.F. No. 3039 Summary

• Establishes the Interstate Health Insurance Competition Act, creating Chapter 62V to allow out-of-state health insurers to sell health plans to Minnesota residents if they comply with applicable Minnesota laws and obtain a certificate of authority from the commissioner of commerce.

• Requires out-of-state health plans to receive prior approval in Minnesota, maintain a certificate of authority valid for three years, participate in the Minnesota Life and Health Insurance Guaranty Association, and undergo financial condition examinations using the National Association of Insurance Commissioners standards.

• Permits the commissioner to deny, revoke, or suspend certificates for violations of the chapter, hazardous financial condition, or non-compliance with confidentiality requirements, while establishing fair marketing standards applied nondiscriminatorily.

• Authorizes health plan companies to offer flexible benefits plans allowing modification or exclusion of state-mandated benefits except maternity and federally-required benefits, with purchasers receiving written disclosure of modified or excluded coverages before enrollment.

• Repeals the previous small employer flexible benefits plan statute (Minnesota Statutes 2008, section 62L.056) and makes flexible benefits provisions effective January 1, 2012.