HF3706 Bill Summary

• Creates a new chapter 62W to establish county-based purchasing organizations as a separate regulatory framework, moving requirements out of the existing section 256B.692 structure.

• Allows rural counties or groups of counties to apply for certificates of authority from the Commissioner of Health to operate county-based purchasing plans that provide health care, behavioral health, public health, and social services.

• Requires county-based purchasing organizations to meet fiscal solvency requirements (50-100% of HMO minimum reserves depending on years of operation) and comply with consumer protection, provider protection, and quality reporting standards.

• Establishes an annual fee of $21,500 plus audit costs collected by the Commissioner of Health, with existing county-based purchasing plans operating on January 1, 2018 automatically grandfathered into the new structure.

• Makes conforming changes throughout Minnesota Statutes to reference the new chapter 62W instead of section 256B.692, ensuring managed care and county-based purchasing plans are treated consistently in payment rates, performance requirements, and administrative oversight.