This bill amends various sections of the Minnesota Statutes to require that health maintenance organizations (HMOs) operate as nonprofit corporations organized under chapter 317A. Key changes include the definition of a health maintenance organization, which now specifies that it must be a nonprofit entity, and the requirement for such organizations to obtain a certificate of authority from the commissioner of health to operate legally. Additionally, the governing body of these organizations must include a significant percentage of enrollees, ensuring that consumer representation is prioritized in decision-making processes.

The bill also introduces a transition period for existing HMOs that do not meet the new nonprofit requirement. These organizations must cease offering health maintenance contracts by August 1, 2024, while still being allowed to operate until that date. They are required to notify their enrollees about the transition plans to another insurer. Furthermore, the commissioner of health is prohibited from issuing or renewing certificates of authority for HMOs that do not comply with the new nonprofit criteria after the specified date. This legislation aims to safeguard the nonprofit status of health maintenance organizations and ensure that they operate in the best interests of their enrollees.

Statutes affected:
Introduction: 62D.02, 62D.03, 62D.05, 62D.06, 62D.19, 62E.02