MN HF1251

Requires new medical assistance enrollees beginning March 1, 2011 to be covered directly by the Department of Human Services rather than through prepaid health plans.

Mandates competitive bidding when current state health plan contracts expire, with contracts in the 13-county metropolitan area awarded to the two managed care organizations best meeting the state's quality and cost-effectiveness needs.

Prohibits managed care organizations from using market division, allocation methodologies, or subcontracting schemes to undermine competitive bidding, with violators barred from contracting with the state for ten years.

Requires all health maintenance organizations, community-integrated service networks, and accountable provider networks to use GAAP accounting principles and clearly separate administrative costs from medical costs in state contracts.

Directs the legislative auditor to regularly audit all health program contracts and eliminates data practices exemptions for trade secrets and proprietary information from contracting health plans.