This bill mandates that health maintenance organizations (HMOs) in Minnesota must operate as nonprofit corporations organized under chapter 317A. It amends several sections of the Minnesota Statutes, specifically sections 62D.02, 62D.03, 62D.05, 62D.06, 62D.19, and 62E.02, to reflect this requirement. Key changes include the deletion of references to "foreign or domestic" organizations and the insertion of "nonprofit" in the definitions and requirements for HMOs. Additionally, the bill emphasizes the need for HMOs to maintain their nonprofit status and outlines the conditions under which they may incur expenses, ensuring that such expenses are reasonable and in the best interest of the organization and its enrollees.

Furthermore, the bill includes a transition period for existing HMOs that do not meet the new nonprofit criteria. These organizations must cease offering health maintenance contracts by August 1, 2024, but may continue to operate until December 31, 2025. They are required to notify their enrollees of their impending closure and any plans for transitioning coverage to another insurer by October 1, 2024. The commissioner of health is also restricted from issuing or renewing certificates of authority for HMOs that do not comply with the new nonprofit requirements after August 1, 2024.

Statutes affected:
Introduction: 62D.02, 62D.03, 62D.05, 62D.06, 62D.19, 62E.02
1st Engrossment: 62D.02, 62D.03, 62D.05, 62D.06, 62D.19, 62E.02