MN HF884

Prohibits new medical assistance enrollees from being placed into prepaid health plans effective March 1, 2011; requires coverage through the Department of Human Services directly.

Requires competitive bidding process for prepaid health plan contracts in the 13-county metropolitan area when current state contracts expire, with awards to the two organizations best meeting the state's quality and cost-effectiveness needs.

Mandates managed care organizations use GAAP accounting principles and defines "administrative costs" and "medical costs" to distinguish between overhead expenses and direct medical expenditures.

Requires the legislative auditor to regularly audit all health program contracts using the specified cost definitions to evaluate whether health care dollars are spent wisely.

Authorizes the Department of Human Services to cover only reasonable and appropriate costs incurred by health plan contractors rather than all costs, and prohibits trade secret exemptions for contracting health plans' data.