HF4853 Summary

• Extends health maintenance organization (HMO) transaction oversight to the commissioner of health, subjecting HMOs to the same insurance provisions and filing requirements as other insurers under Minnesota law.

• Establishes comprehensive requirements for nonprofit health coverage entity conversion transactions, including mandatory attorney general notification with independent third-party asset valuation and 90-day waiting periods (extendable to 180 days).

• Prohibits conversion transactions if they would result in less than full and fair market value of public benefit assets remaining dedicated to public benefit, or if former officers, directors, or family members hold financial interests in entities receiving transferred assets.

• Requires conversion benefit entities to be 501(c)(3) nonprofits with community-based governance, conflict-of-interest policies, and community advisory committees that nominate board members; prohibits officers and directors from serving in conversion entities for five years.

• Authorizes the attorney general to enjoin or unwind conversion transactions violating requirements or contrary to public interest, with civil penalties up to $100,000 per individual violation and $1,000,000 for entities.