The bill introduces enhanced oversight requirements for health maintenance organizations (HMOs) in Minnesota, particularly concerning transactions involving nonprofit health coverage entities. It mandates compliance with existing insurance provisions and establishes a process for acquiring assets from domestic nonprofit HMOs, which requires approval from the commissioner of health. The legislation also outlines a framework for conversion transactions, necessitating that such transactions be reported to the commissioner for evaluation. The bill prohibits conversions that do not ensure full and fair value for public benefit assets or involve conflicts of interest with current or former executives, and it requires nonprofit entities to notify the attorney general before proceeding with these transactions.

Additionally, the bill mandates that the commissioner review and approve conversions of nonprofit health coverage entities into conversion benefit entities, ensuring that governance is community-based and independent. A community advisory committee will be formed to represent diverse community interests and facilitate communication regarding health needs. The attorney general is granted enforcement powers to investigate and act against transactions that violate the law or are against public interest, with penalties established for violations. The commissioner of health is also responsible for analyzing the impact of these transactions on healthcare access and costs, with periodic public reporting required. Overall, the legislation aims to improve transparency and accountability in the conversion of nonprofit health coverage entities while protecting public assets.

Statutes affected:
Introduction: 62D.02, 62D.22, 317A.811
1st Engrossment: 62D.22, 317A.811