HF5 Summary

• Creates the Minnesota Premium Security Plan, a state-based reinsurance program administered by the Minnesota Comprehensive Health Association to stabilize individual health insurance premiums by reimbursing carriers for high-cost claims.

• Establishes payment parameters for reinsurance with an attachment point of $50,000, coinsurance rate of 50-80 percent, and reinsurance cap of $250,000 or less for benefit year 2018 and beyond.

• Appropriates $271 million for benefit years 2018 and 2019, consisting of $200 million from the health care access fund and $71 million from the general fund, contingent on federal approval of a state innovation waiver.

• Requires health carriers to offer at least one individual health plan with in-network access to more than a single health care provider system in counties where they market individual plans, effective January 1, 2018.

• Establishes a legislative working group to advise on reinsurance plan parameters and monitor effectiveness of reinsurance models, federal health reform impacts, and funding sources for benefit year 2019.