25.0740.05000
Sixty-ninth
Legislative Assembly
of North Dakota
Introduced by
Representatives Weisz, Frelich, McLeod, M. Ruby
Senators Lee, Dever
A BILL for an Act to amend and reenact section 54-03-28 of the North Dakota Century Code,
relating to the cost-benefit analysis requirement for health insurance mandated coverage of
services.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. AMENDMENT. Section 54-03-28 of the North Dakota Century Code is
amended and reenacted as follows:
54-03-28. Health insurance mandated coverage of services - Cost-benefit analysis
requirement.
1.If the legislative management determines a legislative measure mandates health
insurance coverage of services or payment for specified providers of services, the
measure may not be referred to a committee of the legislative assembly unless a
cost-benefit analysis provided by the legislative management is appended to that
measure.
a.If a committee of the legislative assembly determines a measure mandating
health insurance coverage of services or payment of specified providers was
referred to committee without a cost-benefit analysis, the committee shall request
the legislative management provide a cost-benefit analysis. The committee may
not act on the measure unless the measure is accompanied by the cost-benefit
analysis.
b.If a committee of the legislative assembly determines a proposed amendment to
a measure mandates health insurance coverage of services or payment of
specified providers, the committee may not act on the proposed amendment
Page No. 1 25.0740.05000
ENGROSSED HOUSE BILL NO. 1248
FIRST ENGROSSMENT
with Conference Committee Amendments
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unless the amendment is accompanied by a cost-benefit analysis or amended
cost-benefit analysis provided by the legislative management.
2.Factors considered in the cost-benefit analysis must include:
a.The extent to which the proposed mandate would increase or decrease the cost
of the service.
b.The extent to which the proposed mandate would increase the appropriate use of
the service.
c.The extent to which the proposed mandate would increase or decrease the
administrative expenses of insurers and the premium and administrative
expenses of insureds.
d.The impact of the proposed mandate on the total cost of health care.
3.AThe legislative management shall adopt a procedure for identifying measures and
proposed measures mandating health insurance coverage of services or payment for
specified providers of services. The procedure must include solicitation of draft
measures and proposals during the interim between legislative sessions from
legislators and agencies with bill introduction privileges and must include deadlines for
identification of the measures or proposals.
2.Except as provided in subsection 3, a committee of the legislative assembly may not
act on a legislative measure that the legislative management or committee determines
mandates health insurance coverage of services or payment for specified providers of
services unless the measure as recommended by the committee provides:
a.The measure is effective through June thirtieth of the next odd-numbered year
following the year in which the legislative assembly enacted the measure, and
after that date the measure is ineffective.
b.The application of the mandate is limited to the public employees health
insurance program and the public employee retiree health insurance program.
The application of suchthe mandate begins with every contract for health
insurance which becomes effective after June thirtieth of the year in which the
measure becomes effective.
c.That for the next legislative assembly, the public employees retirement system
shall prepare and request introduction of a bill to repeal the expiration date and to
Page No. 2 25.0740.05000
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extend the mandated coverage or payment to apply to accident and health
insurance policies. The public employees retirement system shall append to the
billprovide to the employee benefits programs committee a report regarding the
effect of the mandated coverage or payment on the system's health insurance
programs. The report must include information on the utilization and costs
relating to the mandated coverage or payment and a recommendation on
whether the coverage or payment should continue for the system's health
insurance programs. For purposes of this section, the bill is not a legislative
measure mandating health insurance coverage of services or payment for
specified providers of services, unless the bill is amended following introduction
so as to change the bill's mandate.
4.The legislative management shall adopt a procedure for identifying measures and
proposed measures mandating health insurance coverage of services or payment for
specified providers of services. The procedure must include solicitation of draft
measures and proposals during the interim between legislative sessions from
legislators and agencies with bill introduction privileges and must include deadlines for
identification of the measures or proposals.
3.If the legislative management determines a legislative measure mandating health
insurance coverage of services or payment for specified providers of services has
completed the process under subsection 2, the measure may not be referred to a
committee of the legislative assembly unless a cost-benefit analysis provided by the
legislative management is appended to the measure.
a.If a committee of the legislative assembly determines a measure or a proposed
amendment to the measure mandating health insurance coverage of services or
payment of specified providers of services was referred to committee without a
cost-benefit analysis, the committee shall request the legislative management
provide a cost-benefit analysis.
b.The committee may not act on the measure unless the measure is accompanied
by the cost-benefit analysis.
4.Factors considered in the cost-benefit analysis must include:
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a.The extent to which the proposed mandate would increase or decrease the cost
of the service.
b.The extent to which the proposed mandate would increase the appropriate use of
the service.
c.The extent to which the proposed mandate would increase or decrease the
administrative expenses of insurers and the premium and administrative
expenses of insureds.
d.The impact of the proposed mandate on the total cost of health care.
5.The legislative council shall contract with a private entity, after receiving one or more
recommendations from the insurance commissioner, to provide the legislative
management the cost-benefit analysis required by this section. The insurance
commissioner shall pay the cost of the contracted services to the entity providing the
services.
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