Heath Care in the Minnesota Legislature: Update

Heath Care in the Minnesota Legislature: Update

Things are heating up in the Minnesota legislature for nonprofit health care entities. Here are breakdowns of local bills that may affect these types of businesses should they become law.

Minnesota Bill SF 1208

On February 14, 2019, a bill was introduced in the Minnesota Senate that would require health maintenance organizations to be nonprofit corporations organized under Minnesota Statutes chapter 317A. The bill was referred to the Committee on Health and Human Services Finance and Policy.

Minnesota Bill HF 533

On January 31, 2019, a bill was introduced in the Minnesota House of Representatives that would require Attorney General review and approval of any conversion transactions by nonprofit health care entities. The review would be used to determine whether the charitable assets of the nonprofit health care entity are adequately protected. Review decisions would be based on criteria set forth in statute and include such items as whether the health care entity exercised due diligence and whether its procedure in making the decision was fair and objective. The bill also requires that all net earnings of a nonprofit health maintenance organization to be used for nonprofit purposes and would extend a moratorium on conversion transactions from July 1, 2019, to July 1, 2029.

Minnesota Bill HF 572

On January 31, 2019, a bill was introduced in the Minnesota House of Representatives that would establish requirements for the use of net earnings of nonprofit health maintenance organizations (HMO). The bill would require that all net earnings of a nonprofit HMO be devoted to the nonprofit purposes of the HMO in providing comprehensive health care. A nonprofit health maintenance organization would be prohibited from providing direct or indirect payment of any part of its net earnings to any person for a purpose other than providing comprehensive health care. The bill provides an exception, however, that would allow the HMO to pay providers or other persons based on the efficient provision of services or as incentives to provide quality care. Violation of the law could result in revocation of the certificate of authority of a nonprofit HMO.

Minnesota Bill SF 781

On February 4, 2019, a bill was introduced in the Minnesota Senate that would require nonprofit health service plan corporations and HMOs to only enter into contracts with nonprofit corporations, rather than the existing law that allows for contracting with for-profit companies. The bill also prohibits the sharing of patient identifying data with any organization or agency located in another country.

Minnesota Bill SF 1208

On February 14, 2019, a bill was introduced in the Minnesota Senate that would require health maintenance organizations to be nonprofit corporations organized under Minnesota Statutes chapter 317A. The bill was referred to the Committee on Health and Human Services Finance and Policy.

We’ll continue to monitor legislation that may impact our clients. For more information on these bills or law related to health care entities, contact Jen Middleton at 612.305.7755 or jmiddleton@nilanjohnson.com.

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