MN HF1576

Requires all health maintenance organizations (HMOs) operating in Minnesota to be organized as nonprofit corporations under chapter 317A or be local governmental units, effective January 1, 2020.

Prohibits HMOs from distributing net earnings as dividends or rebates to any person, requiring all net earnings be devoted to nonprofit health care purposes; allows payments to providers based on efficient service provision or quality care incentives.

Mandates that nonprofit HMO governing bodies include at least 40 percent enrollee and member representatives after one year of operation, with restrictions on board eligibility for health care industry professionals.

Grants the commissioner of health authority to revoke certificates of authority for HMOs violating nonprofit requirements and to sue officers and trustees for breaching fiduciary duty in contracts with major participating entities.

Establishes transition period requiring non-nonprofit HMOs to cease offering new or renewed health maintenance contracts after September 30, 2019, with existing certificates expiring 30 days after their last contract expiration.