MN HF2806

Amends premium rate restrictions for individual health plans to require geographic rating areas of at least seven contiguous counties with population variance not exceeding 400 percent, with an exception allowing the two largest counties by population to constitute a single region.

Establishes a maximum aggregate premium ratio of 1.5 between the highest and lowest cost geographic regions, and requires health plans to serve entire geographic regions.

Modifies network adequacy standards to allow maximum travel distances of 75 miles or 75 minutes (instead of 30 miles or 30 minutes) for primary care, mental health, and hospital services in regions where average premiums exceed the lowest cost region by at least 50 percent, provided carriers also offer plans meeting standard distance requirements.

Requires the Commissioners of Health, Commerce, and Human Services to issue a report by December 15, 2014, evaluating costs and benefits of establishing an all-payer rate setting system for provider payments.

Appropriates $450,000 in fiscal year 2015 from the general fund to commissioners for evaluation and study activities related to network adequacy standards and single geographic rate area analysis.