S.F. No. 56 Summary

• Establishes temporary premium assistance program for 2017 providing 25-30% of qualified health insurance premiums to Minnesota residents earning 300-800% of poverty line, with $285,000,000 appropriated from general fund.

• Removes requirement that health maintenance organizations be nonprofit corporations, allowing for-profit entities to operate as HMOs while maintaining governance and oversight standards.

• Creates Minnesota premium security plan as state-based reinsurance program with attachment point of $70,000, reinsurance cap of $250,000, and 50% coinsurance rate for plan year 2018 to mitigate impact of high-risk individuals on insurance rates.

• Authorizes county-based purchasing plans to sell health insurance in individual and group markets through demonstration project approved by commissioner, with flexibility to waive certain statutory requirements.

• Provides transition of care coverage for up to 120 days for individuals whose plans were involuntarily terminated between October 31, 2016 and January 1, 2017, with state reimbursement of $15,000,000 for associated costs.