Minnesota 2023-2024 Regular Session

Minnesota Senate Bill SF196 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to health care; creating a Minnesota advance premium tax credit and cost
3	3	1.3 sharing subsidies for eligible individuals who enroll in an eligible qualified health
4	4	1.4 plan through MNsure; amending Minnesota Statutes 2022, section 62V.05,
5	5	1.5 subdivision 1, by adding subdivisions; proposing coding for new law in Minnesota
6	6	1.6 Statutes, chapter 290.
7	7	1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
8	8	1.8 Section 1. Minnesota Statutes 2022, section 62V.05, subdivision 1, is amended to read:
9	9	1.9 Subdivision 1.General.(a) The board shall operate MNsure according to this chapter
10	10	1.10and applicable state and federal law.
11	11	1.11 (b) The board has the power to:
12	12	1.12 (1) employ personnel and delegate administrative, operational, and other responsibilities
13	13	1.13to the director and other personnel as deemed appropriate by the board. This authority is
14	14	1.14subject to chapters 43A and 179A. The director and managerial staff of MNsure shall serve
15	15	1.15in the unclassified service and shall be governed by a compensation plan prepared by the
16	16	1.16board, submitted to the commissioner of management and budget for review and comment
17	17	1.17within 14 days of its receipt, and approved by the Legislative Coordinating Commission
18	18	1.18and the legislature under section 3.855, except that section 15A.0815, subdivision 5,
19	19	1.19paragraph (e), shall not apply;
20	20	1.20 (2) establish the budget of MNsure;
21	21	1.21 (3) seek and accept money, grants, loans, donations, materials, services, or advertising
22	22	1.22revenue from government agencies, philanthropic organizations, and public and private
23	23	1Section 1.
24	24	23-01125 as introduced12/27/22 REVISOR EAP/AD
25	25	SENATE
26	26	STATE OF MINNESOTA
27	27	S.F. No. 196NINETY-THIRD SESSION
28	28	(SENATE AUTHORS: KLEIN and Abeler)
29	29	OFFICIAL STATUSD-PGDATE
30	30	Introduction and first reading01/12/2023
31	31	Referred to Health and Human Services 2.1sources to fund the operation of MNsure. No health carrier or insurance producer shall
32	32	2.2advertise on MNsure;
33	33	2.3 (4) contract for the receipt and provision of goods and services;
34	34	2.4 (5) enter into information-sharing agreements with federal and state agencies and other
35	35	2.5entities, provided the agreements include adequate protections with respect to the
36	36	2.6confidentiality and integrity of the information to be shared, and comply with all applicable
37	37	2.7state and federal laws, regulations, and rules, including the requirements of section 62V.06;
38	38	2.8and
39	39	2.9 (6) exercise all powers reasonably necessary to implement and administer the
40	40	2.10requirements of this chapter, section 290.0687, and the Affordable Care Act, Public Law
41	41	2.11111-148.
42	42	2.12 (c) The board shall establish policies and procedures to gather public comment and
43	43	2.13provide public notice in the State Register.
44	44	2.14 (d) Within 180 days of enactment, the board shall establish bylaws, policies, and
45	45	2.15procedures governing the operations of MNsure in accordance with this chapter.
46	46	2.16 Sec. 2. Minnesota Statutes 2022, section 62V.05, is amended by adding a subdivision to
47	47	2.17read:
48	48	2.18 Subd. 13.Administration of Minnesota advance premium tax credits.(a) In addition
49	49	2.19to the requirements under federal law, MNsure, in consultation with the commissioner of
50	50	2.20revenue, shall establish and administer procedures to determine whether an individual is
51	51	2.21eligible for Minnesota advance premium tax credits in accordance with section 290.0687.
52	52	2.22If an individual is determined to be eligible, MNsure shall notify the individual of the amount
53	53	2.23of the Minnesota advance premium tax credit and transmit eligibility and enrollment
54	54	2.24information to the commissioner of revenue, including the individual's name, taxpayer
55	55	2.25identification number, the dollar amount of the advance payment, and any other information
56	56	2.26necessary to administer the Minnesota advance premium tax credit. The procedures must
57	57	2.27also include provisions that take into account changes in an individual's circumstances that
58	58	2.28may affect eligibility, including but not limited to substantial changes in income, household
59	59	2.29size, or other tax household circumstances, employer coverage, change in filing status, or
60	60	2.30change in Minnesota residency status.
61	61	2.31 (b) A health carrier that receives a Minnesota advance premium tax credit payment from
62	62	2.32the commissioner of revenue for an individual in accordance with section 290.0687,
63	63	2.33subdivision 3, must reduce the monthly premium charged to the individual by the amount
64	64	2Sec. 2.
65	65	23-01125 as introduced12/27/22 REVISOR EAP/AD 3.1of the advance payment for that coverage month. The health carrier shall include in each
66	66	3.2premium billing statement the amount by which the premium for the qualified health plan
67	67	3.3was reduced due to the advance payment received by the health carrier from the commissioner
68	68	3.4of revenue for that enrollee.
69	69	3.5 Sec. 3. Minnesota Statutes 2022, section 62V.05, is amended by adding a subdivision to
70	70	3.6read:
71	71	3.7 Subd. 14.Administration of Minnesota cost sharing reductions.(a) The board, in
72	72	3.8consultation with the commissioner of revenue, shall establish and administer state-based
73	73	3.9cost sharing subsidies to reduce the out-of-pocket costs for eligible individuals.
74	74	3.10 (b) To be eligible for state-based cost sharing subsidies under this subdivision, an
75	75	3.11individual must:
76	76	3.12 (1) enroll in a qualified health plan at the silver level of coverage that is offered through
77	77	3.13MNsure;
78	78	3.14 (2) have a projected annual household income that exceeds 200 percent of federal poverty
79	79	3.15guidelines but is no greater than 500 percent of the federal poverty guidelines for the family
80	80	3.16size involved;
81	81	3.17 (3) be a Minnesota resident;
82	82	3.18 (4) not have access to employer subsidized minimum essential coverage that is affordable
83	83	3.19and provides minimum value as defined in Code of Federal Regulations, title 26, section
84	84	3.201.36B-2, or the American Rescue Plan Act of 2021, and not to be enrolled in other minimum
85	85	3.21essential health coverage as defined by section 5000A(f) of the Internal Revenue Code; and
86	86	3.22 (5) meet all eligibility criteria for premium tax credits under Code of Federal Regulations,
87	87	3.23title 26, section 1.36B-2, with the exception of section 1.36B-2(b)(1).
88	88	3.24 (c) The board shall establish procedures to notify a health carrier that an eligible individual
89	89	3.25has enrolled in a qualified health plan offered by the health carrier through MNsure. Upon
90	90	3.26notification, the health carrier shall reduce the cost sharing of the qualified health plan in
91	91	3.27such a manner that increases the health plan's share of the total allowed costs of benefits
92	92	3.28provided under the health plan to 87 percent of such costs. The state based cost-sharing
93	93	3.29reduction is in addition to any federal cost-sharing reduction an eligible individual is entitled
94	94	3.30to under section 1412 of the Affordable Care Act, Public Law 111-148.
95	95	3.31 (d) A health carrier that makes these cost sharing reductions shall notify the commissioner
96	96	3.32of revenue of the reduction. The commissioner shall make periodic and timely payments
97	97	3Sec. 3.
98	98	23-01125 as introduced12/27/22 REVISOR EAP/AD 4.1to the health carrier that are equal to the value of the reductions. The commissioner may
99	99	4.2establish a capitated payment system to carry out the payment of the cost sharing reductions.
100	100	4.3Any such system must take into account the value of the reductions and make appropriate
101	101	4.4risk adjustments to the payments.
102	102	4.5 Sec. 4. [290.0687] MINNESOTA ADVANCE PREMIUM TAX CREDIT.
103	103	4.6 Subdivision 1.Credit allowed.A qualified taxpayer who is a resident of Minnesota is
104	104	4.7allowed a Minnesota advance premium tax credit against the tax imposed under this chapter.
105	105	4.8The credit equals the difference between the premium assistance credit and the Minnesota
106	106	4.9premium assistance credit amount. For a part-year resident, the credit must be allocated
107	107	4.10based on the percentage calculated under section 290.06, subdivision 2c, paragraph (e).
108	108	4.11 Subd. 2.Definitions.(a) For purposes of this section, the following definitions apply.
109	109	4.12 (b) "Qualified taxpayer" means an applicable taxpayer, as defined under section 36B(c)(1)
110	110	4.13of the Internal Revenue Code, without regard to the expiration of section 36B(c)(1)(E).
111	111	4.14 (c) "Premium assistance credit" means the credit calculated under section 36B(b) of the
112	112	4.15Internal Revenue Code, except that the percentages under section 36B(b)(3)(A)(iii) apply
113	113	4.16to the calculation of the credit under this section without regard to expiration of section
114	114	4.1736B(b)(3)(A)(iii).
115	115	4.18 (d) "Minnesota premium assistance credit amount" means the sum of Minnesota premium
116	116	4.19assistance amounts for all months of the taxable year in which the taxpayer was covered by
117	117	4.20a qualified health plan.
118	118	4.21 (e) "Minnesota premium assistance amount" means the lesser of:
119	119	4.22 (1) the monthly premiums for each month for one or more qualified health plans offered
120	120	4.23through MNsure that cover the taxpayer, the taxpayer's spouse, or any dependent of the
121	121	4.24taxpayer and that were enrolled in through MNsure; or
122	122	4.25 (2) the excess, if any, of:
123	123	4.26 (i) the adjusted monthly premium for each month for the applicable second lowest cost
124	124	4.27silver plan offered with respect to the taxpayer; over
125	125	4.28 (ii) an amount equal to 1/12 of the product of the applicable percentage under section
126	126	4.2936B(b)(3)(A)(i) of the Internal Revenue Code, and the taxpayer's projected annual household
127	127	4.30income for the taxable year, except that household income must not be less than 200 percent
128	128	4.31of the poverty line and must not exceed 800 percent of the poverty line, and the applicable
129	129	4.32percentage for households with income above 400 percent of the poverty line must equal
130	130	4Sec. 4.
131	131	23-01125 as introduced12/27/22 REVISOR EAP/AD 5.1the applicable percentage for households with income equaling 400 percent of the poverty
132	132	5.2line.
133	133	5.3 (f) "Family size," "household income," and "poverty line" have the meanings given in
134	134	5.4section 36B(d) of the Internal Revenue Code.
135	135	5.5 (g) "Dependent" has the meaning given in section 152 of the Internal Revenue Code.
136	136	5.6 (h) "MNsure" has the meaning given in section 62V.02, subdivision 8.
137	137	5.7 (i) "Qualified health plan" has the meaning given in section 62V.02, subdivision 11.
138	138	5.8 (j) "Health carrier" has the meaning given in section 62V.02, subdivision 5.
139	139	5.9 Subd. 3.Advance determination of eligibility; advance payments.The commissioner,
140	140	5.10in consultation with MNsure and based on the information received from MNsure under
141	141	5.11section 62V.05, subdivision 13, shall make advance payment of the Minnesota advance
142	142	5.12premium tax credit allowed under this section to the health carrier that issued the qualified
143	143	5.13health plan in which a qualified taxpayer is enrolled for the purpose of reducing the qualified
144	144	5.14taxpayer's premiums for the qualified health plan by the amount of the credit. The advanced
145	145	5.15payment amount of the credit under this section is in addition to the advance credit payment
146	146	5.16paid by the secretary of treasury under section 36B(b) of the Internal Revenue Code.
147	147	5.17 Subd. 4.Reconciliation of advance payments and credit.(a) The Minnesota premium
148	148	5.18assistance credit under this section is reduced by the amount of advanced payments made
149	149	5.19to the issuer of a qualified plan on behalf of a qualified taxpayer. If advance payments
150	150	5.20exceed the amount of the Minnesota advance premium tax credit allowed under this section,
151	151	5.21the excess amount must be added to the qualified taxpayer's tax liability as calculated under
152	152	5.22this chapter. A refund due to the qualified taxpayer under any other credits in this chapter
153	153	5.23must be reduced by the amount of excess advance payments made on behalf of the taxpayer
154	154	5.24in a taxable year.
155	155	5.25 (b) The provisions of section 36B(f)(2)(B) of the Internal Revenue Code apply for
156	156	5.26purposes of calculating excess advance payments of the Minnesota advance premium tax
157	157	5.27credit under this section.
158	158	5.28 Subd. 5.Credit refundable.Subject to the provisions of subdivisions 3 and 4, if the
159	159	5.29amount of the Minnesota premium assistance credit that a qualified taxpayer is allowed
160	160	5.30under this section exceeds the qualified taxpayer's tax liability under this chapter, the
161	161	5.31commissioner shall refund the excess to the qualified taxpayer.
162	162	5Sec. 4.
163	163	23-01125 as introduced12/27/22 REVISOR EAP/AD 6.1 Subd. 6.Appropriation.An amount sufficient to pay the advance payments authorized
164	164	6.2under subdivision 3 and refunds authorized under subdivision 5 is appropriated to the
165	165	6.3commissioner from the general fund.
166	166	6.4 EFFECTIVE DATE.This section is effective for taxable years beginning after December
167	167	6.531, 2023.
168	168	6Sec. 4.
169	169	23-01125 as introduced12/27/22 REVISOR EAP/AD