Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF1024 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		1.1 A bill for an act
2	2		1.2 relating to health insurance; establishing a premium subsidy program administered
3	3		1.3 by MNsure; providing a sunset for the Minnesota premium security plan;
4	4		1.4 appropriating money; amending Minnesota Statutes 2024, section 62E.23,
5	5		1.5 subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 62V;
6	6		1.6 repealing Minnesota Statutes 2024, sections 62E.21; 62E.22; 62E.23; 62E.24;
7	7		1.7 62E.25.
8	8		1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
9	9		1.9 Section 1. Minnesota Statutes 2024, section 62E.23, subdivision 1, is amended to read:
10	10		1.10 Subdivision 1.Administration of plan.(a) The association is Minnesota's reinsurance
11	11		1.11entity to administer the state-based reinsurance program referred to as the Minnesota premium
12	12		1.12security plan.
13	13		1.13 (b) The association may apply for any available federal funding for the plan. All funds
14	14		1.14received by or appropriated to the association shall be deposited in the premium security
15	15		1.15plan account in section 62E.25, subdivision 1. The association shall notify the chairs and
16	16		1.16ranking minority members of the legislative committees with jurisdiction over health and
17	17		1.17human services and insurance within ten days of receiving any federal funds.
18	18		1.18 (c) The association must collect or access data from an eligible health carrier that are
19	19		1.19necessary to determine reinsurance payments, according to the data requirements under
20	20		1.20subdivision 5, paragraph (c).
21	21		1.21 (d) The board must not use any funds allocated to the plan for staff retreats, promotional
22	22		1.22giveaways, excessive executive compensation, or promotion of federal or state legislative
23	23		1.23or regulatory changes.
24	24		1Section 1.
25		-	S1024-~~2 2nd~~ EngrossmentSF1024 REVISOR RSI
	25	+	S1024-1 1st EngrossmentSF1024 REVISOR RSI
26	26		SENATE
27	27		STATE OF MINNESOTA
28	28		S.F. No. 1024NINETY-FOURTH SESSION
29	29		(SENATE AUTHORS: WIKLUND and Klein)
30	30		OFFICIAL STATUSD-PGDATE
31	31		Introduction and first reading29702/06/2025
32	32		Referred to Health and Human Services
33		-	Comm report: To pass as amended and re-refer to Commerce and Consumer Protection732a03/13/2025
34		-	Comm report: To pass and re-referred to Judiciary and Public Safety127404/02/2025
35		-	Comm report: To pass as amended and re-refer to Health and Human Services04/07/2025 2.1 (e) For each applicable benefit year, the association must notify eligible health carriers
	33	+	Comm report: To pass as amended and re-refer to Commerce and Consumer Protection03/13/2025 2.1 (e) For each applicable benefit year, the association must notify eligible health carriers
36	34		2.2of reinsurance payments to be made for the applicable benefit year no later than June 30 of
37	35		2.3the year following the applicable benefit year.
38	36		2.4 (f) On a quarterly basis during the applicable benefit year, the association must provide
39	37		2.5each eligible health carrier with the calculation of total reinsurance payment requests.
40	38		2.6 (g) By August 15 of the year following the applicable benefit year, through August 15,
41	39		2.72026, the association must disburse all applicable reinsurance payments to an eligible health
42	40		2.8carrier.
43	41		2.9 (h) The association must disburse applicable reinsurance payments for claims costs
44	42		2.10incurred by eligible health carriers through December 31, 2025. Reinsurance payments are
45	43		2.11not available to eligible health carriers for claims costs incurred after December 31, 2025.
46	44		2.12 Sec. 2. [62V.15] DEFINITIONS; PREMIUM SUBSIDY PROGRAM.
47	45		2.13 Subdivision 1.Scope.For purposes of sections 62V.15 to 62V.17, the following terms
48	46		2.14have the meanings given.
49	47		2.15 Subd. 2.Eligible individual.(a) "Eligible individual" means a Minnesota resident who:
50	48		2.16 (1) is not eligible for an advance premium tax credit under Code of Federal Regulations,
51	49		2.17title 26, part 1.36B-2, in a month in which the eligible individual's coverage is effective;
52	50		2.18 (2) is not enrolled in public program coverage under chapters 256B and 256L; and
53	51		2.19 (3) purchased an individual health plan, as defined in section 62A.011.
54	52		2.20 (b) "Eligible individual" includes a person required to repay an advanced premium tax
55	53		2.21credit because the person's income was subsequently determined to exceed the maximum
56	54		2.22permissible amount to qualify as an applicable taxpayer under Code of Federal Regulations,
57	55		2.23title 26, part 1.36B-2.
58	56		2.24 Subd. 3.Gross premium."Gross premium" means the amount billed for a health plan
59	57		2.25purchased by an eligible individual prior to a premium subsidy in a calendar year.
60	58		2.26 Subd. 4.Net premium."Net premium" means the gross premium less the premium
61	59		2.27subsidy.
62	60		2.28 Subd. 5.Premium subsidy."Premium subsidy" means a payment (1) made on behalf
63	61		2.29of an eligible individual to promote general welfare, and (2) that is not compensation for a
64	62		2.30service rendered.
65	63		2Sec. 2.
66		-	S1024-~~2 2nd~~ EngrossmentSF1024 REVISOR RSI 3.1 Sec. 3. [62V.16] PAYMENT TO HEALTH CARRIERS ON BEHALF OF ELIGIBLE
	64	+	S1024-1 1st EngrossmentSF1024 REVISOR RSI 3.1 Sec. 3. [62V.16] PAYMENT TO HEALTH CARRIERS ON BEHALF OF ELIGIBLE
67	65		3.2INDIVIDUALS.
68	66		3.3 Subdivision 1.Program established.Beginning January 1, 2026, the board of directors
69	67		3.4of MNsure, in consultation with the commissioners of commerce and human services, must
70	68		3.5establish and administer the premium subsidy program authorized by this section to help
71	69		3.6eligible individuals pay for coverage in the individual market.
72	70		3.7 Subd. 2.Premium subsidy provided.(a) A health carrier must provide a premium
73	71		3.8subsidy to each eligible individual who purchases an individual health plan, as defined in
74	72		3.9section 62A.011, from the health carrier. The premium subsidy must be provided for each
75	73		3.10month the net premium is paid. An eligible individual must pay the net premium amount
76	74		3.11to the health carrier.
77	75		3.12 (b) Each premium subsidy must be equal to 20 percent of the monthly gross premium
78	76		3.13otherwise paid by or on behalf of the eligible individual for coverage purchased in the
79	77		3.14individual market that covers the eligible individual and the eligible individual's spouse and
80	78		3.15dependents.
81	79		3.16 (c) The premium subsidy must be excluded from a calculation used to determine eligibility
82	80		3.17for a Department of Human Services program.
83	81		3.18 Subd. 3.Payments to health carriers.(a) The board must make payments to health
84	82		3.19carriers on behalf of eligible individuals effectuating coverage for a calendar year for the
85	83		3.20months during the calendar year for which the individual has paid the net premium amount
86	84		3.21to the health carrier. The board must not withhold payment because a health carrier cannot
87	85		3.22prove an enrollee is an eligible individual.
88	86		3.23 (b) In order to be eligible for payment, a health carrier seeking reimbursement from the
89	87		3.24board must submit an invoice and supporting information to the board, using a form
90	88		3.25developed by the board. The board must finalize the form by November 1, 2025.
91	89		3.26 (c) The board must consider a health carrier as a vendor under section 16A.124,
92	90		3.27subdivision 3, and each monthly invoice must represent the services that have been completed
93	91		3.28or delivered.
94	92		3.29 (d) With each November forecast under section 16A.103, the board must certify the
95	93		3.30extent to which appropriations exceed forecast obligations under this subdivision.
96	94		3.31 (e) The board may withhold payments, charge back payments, and otherwise utilize all
97	95		3.32authority granted to the board under state law to recover from health carriers premium
98	96		3Sec. 3.
99		-	S1024-~~2 2nd~~ EngrossmentSF1024 REVISOR RSI 4.1subsidies provided but that do not comply with the applicable legal requirements of this
	97	+	S1024-1 1st EngrossmentSF1024 REVISOR RSI 4.1subsidies provided but that do not comply with the applicable legal requirements of this
100	98		4.2section.
101	99		4.3 Subd. 4.Data practices.(a) The definitions in section 13.02 apply to this subdivision.
102	100		4.4 (b) Government data on an enrollee or health carrier under this section are private data
103	101		4.5on individuals or nonpublic data, except that the total reimbursement requested by a health
104	102		4.6carrier and the total state payment to the health carrier are public data.
105		-	4.7 Sec. 4. [62V.17] APPLICABILITY OF GROSS PREMIUM.
106		-	4.8 Notwithstanding premium subsidies provided under section 62V.16, subdivision 2, the
107		-	4.9premium base to calculate any applicable premium taxes under chapter 297I is the gross
108		-	4.10premium for health plans purchased by eligible individuals in the individual market.
109		-	4.11 Sec. 5. APPROPRIATION.
110		-	4.12 $....... in fiscal year 2026 is appropriated from the general fund to the Board of Directors
111		-	4.13of MNsure for premium assistance under Minnesota Statutes, section 62V.16. Any amount
112		-	4.14that remains unexpended after fiscal year 2026 does not cancel and is available in fiscal
113		-	4.15year 2027.
114		-	4.16 Sec. 6. REVISOR INSTRUCTION.
115		-	4.17 The revisor of statutes must remove or amend, as applicable, all references and provisions
116		-	4.18relating to the premium security account and the Minnesota premium security plan in
117		-	4.19Minnesota Statutes to reflect the expiration of the Minnesota premium security plan as
118		-	4.20intended in this act.
119		-	4.21 Sec. 7. REPEALER.
120		-	4.22 Minnesota Statutes 2024, sections 62E.21; 62E.22; 62E.23; 62E.24; and 62E.25, are
121		-	4.23repealed.
122		-	4.24 EFFECTIVE DATE.This section is effective August 16, 2026.
123		-	4Sec. 7.
124		-	S1024-2 2nd EngrossmentSF1024 REVISOR RSI 62E.21 DEFINITIONS.
	103	+	4.7 Subd. 5.Data sharing.(a) Notwithstanding any law to the contrary, the board must
	104	+	4.8disseminate data on an enrollee's public program coverage enrollment under chapters 256B
	105	+	4.9and 256L to health carriers to the extent the board determines data sharing is necessary to
	106	+	4.10determine the enrollee's eligibility for the premium subsidy program authorized by this
	107	+	4.11section.
	108	+	4.12 (b) Data shared under this subdivision may be collected, stored, or used only to administer
	109	+	4.13the premium subsidy program authorized by this section, and must not be further shared or
	110	+	4.14disseminated except as otherwise provided by law.
	111	+	4.15 Sec. 4. [62V.17] APPLICABILITY OF GROSS PREMIUM.
	112	+	4.16 Notwithstanding premium subsidies provided under section 62V.16, subdivision 2, the
	113	+	4.17premium base to calculate any applicable premium taxes under chapter 297I is the gross
	114	+	4.18premium for health plans purchased by eligible individuals in the individual market.
	115	+	4.19 Sec. 5. APPROPRIATION.
	116	+	4.20 $....... in fiscal year 2026 is appropriated from the general fund to the Board of Directors
	117	+	4.21of MNsure for premium assistance under Minnesota Statutes, section 62V.16. Any amount
	118	+	4.22that remains unexpended after fiscal year 2026 does not cancel and is available in fiscal
	119	+	4.23year 2027.
	120	+	4.24 Sec. 6. REVISOR INSTRUCTION.
	121	+	4.25 The revisor of statutes must remove or amend, as applicable, all references and provisions
	122	+	4.26relating to the premium security account and the Minnesota premium security plan in
	123	+	4.27Minnesota Statutes to reflect the expiration of the Minnesota premium security plan as
	124	+	4.28intended in this act.
	125	+	4Sec. 6.
	126	+	S1024-1 1st EngrossmentSF1024 REVISOR RSI 5.1 Sec. 7. REPEALER.
	127	+	5.2 Minnesota Statutes 2024, sections 62E.21; 62E.22; 62E.23; 62E.24; and 62E.25, are
	128	+	5.3repealed.
	129	+	5.4 EFFECTIVE DATE.This section is effective August 16, 2026.
	130	+	5Sec. 7.
	131	+	S1024-1 1st EngrossmentSF1024 REVISOR RSI 62E.21 DEFINITIONS.
125	132		Subdivision 1.Application.For the purposes of sections 62E.21 to 62E.25, the terms defined
126	133		in this section have the meanings given them.
127	134		Subd. 2.Affordable Care Act."Affordable Care Act" means the federal act as defined in
128	135		section 62A.011, subdivision 1a.
129	136		Subd. 3.Attachment point."Attachment point" means an amount as provided in section 62E.23,
130	137		subdivision 2, paragraph (b).
131	138		Subd. 4.Benefit year."Benefit year" means the calendar year for which an eligible health
132	139		carrier provides coverage through an individual health plan.
133	140		Subd. 5.Board."Board" means the board of directors of the Minnesota Comprehensive Health
134	141		Association created under section 62E.10.
135	142		Subd. 6.Coinsurance rate."Coinsurance rate" means the rate as provided in section 62E.23,
136	143		subdivision 2, paragraph (c).
137	144		Subd. 7.Commissioner."Commissioner" means the commissioner of commerce.
138	145		Subd. 8.Eligible health carrier."Eligible health carrier" means all of the following that offer
139	146		individual health plans and incur claims costs for an individual enrollee's covered benefits in the
140	147		applicable benefit year:
141	148		(1) an insurance company licensed under chapter 60A to offer, sell, or issue a policy of accident
142	149		and sickness insurance as defined in section 62A.01;
143	150		(2) a nonprofit health service plan corporation operating under chapter 62C; or
144	151		(3) a health maintenance organization operating under chapter 62D.
145	152		Subd. 9.Individual health plan."Individual health plan" means a health plan as defined in
146	153		section 62A.011, subdivision 4, that is not a grandfathered plan as defined in section 62A.011,
147	154		subdivision 1b.
148	155		Subd. 10.Individual market."Individual market" has the meaning given in section 62A.011,
149	156		subdivision 5.
150	157		Subd. 11.Minnesota Comprehensive Health Association or association."Minnesota
151	158		Comprehensive Health Association" or "association" has the meaning given in section 62E.02,
152	159		subdivision 14.
153	160		Subd. 12.Minnesota premium security plan or plan."Minnesota premium security plan" or
154	161		"plan" means the state-based reinsurance program authorized under section 62E.23.
155	162		Subd. 13.Payment parameters."Payment parameters" means the attachment point, reinsurance
156	163		cap, and coinsurance rate for the plan.
157	164		Subd. 14.Reinsurance cap."Reinsurance cap" means the threshold amount as provided in
158	165		section 62E.23, subdivision 2, paragraph (d).
159	166		Subd. 15.Reinsurance payments."Reinsurance payments" means an amount paid by the
160	167		association to an eligible health carrier under the plan.
161	168		62E.22 DUTIES OF COMMISSIONER.
162	169		The commissioner shall require eligible health carriers to calculate the premium amount the
163	170		eligible health carrier would have charged for the benefit year if the Minnesota premium security
164	171		plan had not been established. The eligible health carrier must submit this information as part of
165	172		its rate filing. The commissioner must consider this information as part of the rate review.
166	173		62E.23 MINNESOTA PREMIUM SECURITY PLAN.
167	174		Subdivision 1.Administration of plan.(a) The association is Minnesota's reinsurance entity
168	175		to administer the state-based reinsurance program referred to as the Minnesota premium security
169	176		plan.
170	177		(b) The association may apply for any available federal funding for the plan. All funds received
171	178		by or appropriated to the association shall be deposited in the premium security plan account in
172	179		section 62E.25, subdivision 1. The association shall notify the chairs and ranking minority members
173	180		1R
174	181		APPENDIX
175		-	Repealed Minnesota Statutes: S1024-2 of the legislative committees with jurisdiction over health and human services and insurance within
	182	+	Repealed Minnesota Statutes: S1024-1 of the legislative committees with jurisdiction over health and human services and insurance within
176	183		ten days of receiving any federal funds.
177	184		(c) The association must collect or access data from an eligible health carrier that are necessary
178	185		to determine reinsurance payments, according to the data requirements under subdivision 5, paragraph
179	186		(c).
180	187		(d) The board must not use any funds allocated to the plan for staff retreats, promotional
181	188		giveaways, excessive executive compensation, or promotion of federal or state legislative or
182	189		regulatory changes.
183	190		(e) For each applicable benefit year, the association must notify eligible health carriers of
184	191		reinsurance payments to be made for the applicable benefit year no later than June 30 of the year
185	192		following the applicable benefit year.
186	193		(f) On a quarterly basis during the applicable benefit year, the association must provide each
187	194		eligible health carrier with the calculation of total reinsurance payment requests.
188	195		(g) By August 15 of the year following the applicable benefit year, the association must disburse
189	196		all applicable reinsurance payments to an eligible health carrier.
190	197		Subd. 2.Payment parameters.(a) The board must design and adjust the payment parameters
191	198		to ensure the payment parameters:
192	199		(1) will stabilize or reduce premium rates in the individual market;
193	200		(2) will increase participation in the individual market;
194	201		(3) will improve access to health care providers and services for those in the individual market;
195	202		(4) mitigate the impact high-risk individuals have on premium rates in the individual market;
196	203		(5) take into account any federal funding available for the plan; and
197	204		(6) take into account the total amount available to fund the plan.
198	205		(b) The attachment point for the plan is the threshold amount for claims costs incurred by an
199	206		eligible health carrier for an enrolled individual's covered benefits in a benefit year, beyond which
200	207		the claims costs for benefits are eligible for reinsurance payments. The attachment point shall be
201	208		set by the board at $50,000 or more, but not exceeding the reinsurance cap.
202	209		(c) The coinsurance rate for the plan is the rate at which the association will reimburse an eligible
203	210		health carrier for claims incurred for an enrolled individual's covered benefits in a benefit year
204	211		above the attachment point and below the reinsurance cap. The coinsurance rate shall be set by the
205	212		board at a rate between 50 and 80 percent.
206	213		(d) The reinsurance cap is the threshold amount for claims costs incurred by an eligible health
207	214		carrier for an enrolled individual's covered benefits, after which the claims costs for benefits are
208	215		no longer eligible for reinsurance payments. The reinsurance cap shall be set by the board at $250,000
209	216		or less.
210	217		(e) The board may adjust the payment parameters to the extent necessary to secure federal
211	218		approval of the state innovation waiver request in Laws 2017, chapter 13, article 1, section 8.
212	219		Subd. 3.Operation.(a) The board shall propose to the commissioner the payment parameters
213	220		for the next benefit year by January 15 of the year before the applicable benefit year. The
214	221		commissioner shall approve or reject the payment parameters no later than 14 days following the
215	222		board's proposal. If the commissioner fails to approve or reject the payment parameters within 14
216	223		days following the board's proposal, the proposed payment parameters are final and effective.
217	224		(b) If the amount in the premium security plan account in section 62E.25, subdivision 1, is not
218	225		anticipated to be adequate to fully fund the approved payment parameters as of July 1 of the year
219	226		before the applicable benefit year, the board, in consultation with the commissioner and the
220	227		commissioner of management and budget, shall propose payment parameters within the available
221	228		appropriations. The commissioner must permit an eligible health carrier to revise an applicable rate
222	229		filing based on the final payment parameters for the next benefit year.
223	230		(c) Notwithstanding paragraph (a), the payment parameters for benefit years 2023 through 2027
224	231		are:
225	232		(1) an attachment point of $50,000;
226	233		2R
227	234		APPENDIX
228		-	Repealed Minnesota Statutes: S1024-2 (2) a coinsurance rate of 80 percent; and
	235	+	Repealed Minnesota Statutes: S1024-1 (2) a coinsurance rate of 80 percent; and
229	236		(3) a reinsurance cap of $250,000.
230	237		Subd. 4.Calculation of reinsurance payments.(a) Each reinsurance payment must be calculated
231	238		with respect to an eligible health carrier's incurred claims costs for an individual enrollee's covered
232	239		benefits in the applicable benefit year. If the claims costs do not exceed the attachment point, the
233	240		reinsurance payment is $0. If the claims costs exceed the attachment point, the reinsurance payment
234	241		shall be calculated as the product of the coinsurance rate and the lesser of:
235	242		(1) the claims costs minus the attachment point; or
236	243		(2) the reinsurance cap minus the attachment point.
237	244		(b) The board must ensure that reinsurance payments made to eligible health carriers do not
238	245		exceed the total amount paid by the eligible health carrier for any eligible claim. "Total amount
239	246		paid of an eligible claim" means the amount paid by the eligible health carrier based upon the
240	247		allowed amount less any deductible, coinsurance, or co-payment, as of the time the data are submitted
241	248		or made accessible under subdivision 5, paragraph (c).
242	249		Subd. 5.Eligible carrier requests for reinsurance payments.(a) An eligible health carrier
243	250		may request reinsurance payments from the association when the eligible health carrier meets the
244	251		requirements of this subdivision and subdivision 4.
245	252		(b) An eligible health carrier must make requests for reinsurance payments in accordance with
246	253		any requirements established by the board.
247	254		(c) An eligible health carrier must provide the association with access to the data within the
248	255		dedicated data environment established by the eligible health carrier under the federal risk adjustment
249	256		program under United States Code, title 42, section 18063. Eligible health carriers must submit an
250	257		attestation to the board asserting compliance with the dedicated data environments, data requirements,
251	258		establishment and usage of masked enrollee identification numbers, and data submission deadlines.
252	259		(d) An eligible health carrier must provide the access described in paragraph (c) for the applicable
253	260		benefit year by April 30 of each year of the year following the end of the applicable benefit year.
254	261		(e) An eligible health carrier must maintain documents and records, whether paper, electronic,
255	262		or in other media, sufficient to substantiate the requests for reinsurance payments made pursuant
256	263		to this section for a period of at least six years. An eligible health carrier must also make those
257	264		documents and records available upon request from the commissioner for purposes of verification,
258	265		investigation, audit, or other review of reinsurance payment requests.
259	266		(f) An eligible health carrier may follow the appeals procedure under section 62E.10, subdivision
260	267		2a.
261	268		(g) The association may have an eligible health carrier audited to assess the health carrier's
262	269		compliance with the requirements of this section. The eligible health carrier must ensure that its
263	270		contractors, subcontractors, or agents cooperate with any audit under this section. If an audit results
264	271		in a proposed finding of material weakness or significant deficiency with respect to compliance
265	272		with any requirement of this section, the eligible health carrier may provide a response to the
266	273		proposed finding within 30 days. Within 30 days of the issuance of a final audit report that includes
267	274		a finding of material weakness or significant deficiency, the eligible health carrier must:
268	275		(1) provide a written corrective action plan to the association for approval;
269	276		(2) implement the approved plan; and
270	277		(3) provide the association with written documentation of the corrective action once taken.
271	278		Subd. 6.Data.Government data of the association under this section are private data on
272	279		individuals, or nonpublic data, as defined under section 13.02, subdivision 9 or 12.
273	280		62E.24 ACCOUNTING, REPORTS, AND AUDITS OF THE ASSOCIATION.
274	281		Subdivision 1.Accounting.The board must keep an accounting for each benefit year of all:
275	282		(1) funds appropriated for reinsurance payments and administrative and operational expenses;
276	283		(2) requests for reinsurance payments received from eligible health carriers;
277	284		(3) reinsurance payments made to eligible health carriers; and
278	285		3R
279	286		APPENDIX
280		-	Repealed Minnesota Statutes: S1024-2 (4) administrative and operational expenses incurred for the plan.
	287	+	Repealed Minnesota Statutes: S1024-1 (4) administrative and operational expenses incurred for the plan.
281	288		Subd. 2.Reports.(a) The board must submit to the commissioner and to the chairs and ranking
282	289		minority members of the legislative committees with jurisdiction over commerce and health and
283	290		make available to the public quarterly reports on plan operations and an annual report summarizing
284	291		the plan operations for each benefit year. All reports must be made public by posting the report on
285	292		the Minnesota Comprehensive Health Association website. The annual summary must be made
286	293		available by November 1 of the year following the applicable benefit year or 60 calendar days
287	294		following the final disbursement of reinsurance payments for the applicable benefit year, whichever
288	295		is later.
289	296		(b) The reports must include information about:
290	297		(1) the reinsurance parameters used;
291	298		(2) the metal levels affected;
292	299		(3) the number of claims payments estimated and submitted for payment per products offered
293	300		on-exchange and off-exchange and per eligible health carrier;
294	301		(4) the estimated reinsurance payments by plan type based on carrier-submitted templates;
295	302		(5) funds appropriated for reinsurance payments and administrative and operational expenses
296	303		for each year, including the federal and state contributions received, investment income, and any
297	304		other revenue or funds received;
298	305		(6) the total amount of reinsurance payments made to each eligible health carrier; and
299	306		(7) administrative and operational expenses incurred for the plan, including the total amount
300	307		incurred and as a percentage of the plan's operational budget.
301	308		Subd. 3.Legislative auditor.The Minnesota premium security plan is subject to audit by the
302	309		legislative auditor. The board must ensure that its contractors, subcontractors, or agents cooperate
303	310		with the audit.
304	311		Subd. 4.Independent external audit.(a) The board must engage and cooperate with an
305	312		independent certified public accountant or CPA firm licensed or permitted under chapter 326A to
306	313		perform an audit for each benefit year of the plan, in accordance with generally accepted auditing
307	314		standards. The audit must at a minimum:
308	315		(1) assess compliance with the requirements of sections 62E.21 to 62E.25; and
309	316		(2) identify any material weaknesses or significant deficiencies and address manners in which
310	317		to correct any such material weaknesses or deficiencies.
311	318		(b) The board, after receiving the completed audit, must:
312	319		(1) provide the commissioner the results of the audit;
313	320		(2) identify to the commissioner any material weakness or significant deficiency identified in
314	321		the audit and address in writing to the commissioner how the board intends to correct any such
315	322		material weakness or significant deficiency in compliance with subdivision 5; and
316	323		(3) make public the results of the audit, to the extent the audit contains government data that is
317	324		public, including any material weakness or significant deficiency and how the board intends to
318	325		correct the material weakness or significant deficiency, by posting the audit results on the Minnesota
319	326		Comprehensive Health Association website and making the audit results otherwise available.
320	327		Subd. 5.Actions on audit findings.(a) If an audit results in a finding of material weakness or
321	328		significant deficiency with respect to compliance by the association with any requirement under
322	329		sections 62E.21 to 62E.25, the board must:
323	330		(1) provide a written corrective action plan to the commissioner for approval within 60 days of
324	331		the completed audit;
325	332		(2) implement the corrective action plan; and
326	333		(3) provide the commissioner with written documentation of the corrective actions taken.
327	334		(b) By December 1 of each year, the board must submit a report to the standing committees of
328	335		the legislature having jurisdiction over health and human services and insurance regarding any
329	336		finding of material weakness or significant deficiency found in an audit.
330	337		4R
331	338		APPENDIX
332		-	Repealed Minnesota Statutes: S1024-2 62E.25 ACCOUNTS.
	339	+	Repealed Minnesota Statutes: S1024-1 62E.25 ACCOUNTS.
333	340		Subdivision 1.Premium security plan account.The premium security plan account is created
334	341		in the special revenue fund of the state treasury. Funds in the account are appropriated annually to
335	342		the commissioner of commerce for grants to the Minnesota Comprehensive Health Association for
336	343		the operational and administrative costs and reinsurance payments relating to the start-up and
337	344		operation of the Minnesota premium security plan. Notwithstanding section 11A.20, all investment
338	345		income and all investment losses attributable to the investment of the premium security plan account
339	346		shall be credited to the premium security plan account.
340	347		Subd. 2.Deposits.Except as provided in subdivision 3, funds received by the commissioner
341	348		of commerce or other state agency pursuant to the state innovation waiver request in Laws 2017,
342	349		chapter 13, article 1, section 8, shall be deposited in the premium security plan account in subdivision
343	350		1.
344	351		Subd. 3.Basic health plan trust account.Funds received by the commissioner of commerce
345	352		or other state agency pursuant to the state innovation waiver request in Laws 2017, chapter 13,
346	353		article 1, section 8, that are attributable to the basic health program shall be deposited in the basic
347	354		health plan trust account in the federal fund.
348	355		5R
349	356		APPENDIX
350		-	Repealed Minnesota Statutes: S1024-2
	357	+	Repealed Minnesota Statutes: S1024-1