1.2relating to commerce; establishing the Minnesota Insurance Marketplace;
1.3prescribing its powers and duties; establishing the right not to participate;
1.4appropriating money;amending Minnesota Statutes 2012, section 13.7191, by
1.5adding a subdivision; proposing coding for new law as Minnesota Statutes,
1.6chapter 62V.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8    Section 1. Minnesota Statutes 2012, section 13.7191, is amended by adding a
1.9subdivision to read:
1.10    Subd. 14a. Minnesota Insurance Marketplace. Classification and sharing of data
1.11of the Minnesota Insurance Marketplace is governed by section 62V.06.

1.12    Sec. 2. [62V.01] TITLE.
1.13This chapter may be cited as the "Minnesota Insurance Marketplace Act."

1.14    Sec. 3. [62V.02] DEFINITIONS.
1.15    Subdivision 1. Scope. For the purposes of this chapter, the following terms have
1.16the meanings given.
1.17    Subd. 2. Board. "Board" means the board of directors specified in section 62V.04.
1.18    Subd. 3. Health benefit plan. "Health benefit plan" means a policy, contract,
1.19certificate, or agreement defined in section 62A.011, subdivision 3, and a dental plan
1.20defined in section 62Q.76, subdivision 3.
1.21    Subd. 4. Health carrier. "Health carrier" has the meaning defined in section
1.2262A.011.
2.1    Subd. 5. Individual market. "Individual market" means the market for health
2.2insurance coverage offered to individuals.
2.3    Subd. 6. Insurance producer. "Insurance producer" has the meaning defined
2.4in section 60K.31.
2.5    Subd. 7. Minnesota Insurance Marketplace. "Minnesota Insurance Marketplace"
2.6means the Minnesota Insurance Marketplace created as a state health benefit exchange
2.7as described in section 1311 of the federal Patient Protection and Affordable Care Act
2.8(Public Law 111-148), and further defined through amendments to the act and regulations
2.9issued under the act.
2.10    Subd. 8. Navigator. "Navigator" has the meaning described in section 1311(i) of
2.11the federal Patient Protection and Affordable Care Act (Public Law 111-148), and further
2.12defined through amendments to the act and regulations issued under the act.
2.13    Subd. 9. Public health care program. "Public health care program" means any
2.14public health care program administered by the commissioner of human services whereby
2.15eligibility for the program is determined according to a modified adjusted gross income
2.16standard.
2.17    Subd. 10. Small group market. "Small group market" means the market for health
2.18insurance coverage offered to small employers as defined in section 62L.02, subdivision 26.

2.19    Sec. 4. [62V.03] MINNESOTA INSURANCE MARKETPLACE;
2.20ESTABLISHMENT.
2.21    Subdivision 1. Creation. The Minnesota Insurance Marketplace is created as a
2.22board under section 15.012, paragraph (a), to:
2.23(1) promote innovation, competition, quality, value, market participation,
2.24affordability, meaningful choices, health improvement, care management, and portability
2.25of health benefit plans;
2.26(2) facilitate and simplify the comparison, choice, enrollment, and purchase of health
2.27benefit plans for individuals purchasing in the individual market through the Minnesota
2.28Insurance Marketplace and for employees and employers purchasing in the small group
2.29market through the Minnesota Insurance Marketplace;
2.30(3) assist small employers with access to small business health insurance tax credits
2.31and to assist individuals with access to public health care programs, premium assistance
2.32tax credits and cost-sharing reductions, and certificates of exemption from individual
2.33responsibility requirements; and
2.34(4) facilitate the integration and transition of individuals between public health care
2.35programs and health benefit plans in the individual market.
3.1    Subd. 2. Application of other law. (a) The Minnesota Insurance Marketplace is
3.2subject to review by the legislative auditor under section 3.971.
3.3(b) Board members of the Minnesota Insurance Marketplace are subject to section
3.410A.07. Board members and the personnel of the Minnesota Insurance Marketplace
3.5are subject to section 10A.071.
3.6(c) All meetings of the board shall comply with the open meeting law in chapter
3.713D, except that:
3.8(1) meetings regarding personnel negotiations may be closed at the discretion of
3.9the board;
3.10(2) meetings regarding contract negotiations may be closed at the discretion of
3.11the board; and
3.12(3) meetings regarding private, not public, nonpublic, or trade secret information
3.13are closed to the public.
3.14(d) The Minnesota Insurance Marketplace and provisions specified under this
3.15chapter are exempt from:
3.16(1) chapter 14, including section 14.386;
3.17(2) chapters 16B and 16C, with the exception of sections 16C.08, subdivision
3.182, paragraph (b), clauses (1) to (8); 16C.086; 16C.09, paragraph (a), clauses (1) and
3.19(3), paragraph (b), and paragraph (c); and section 16C.16. However, the Minnesota
3.20Insurance Marketplace, in consultation with the commissioner of administration, shall
3.21implement policies and procedures to establish an open and competitive procurement
3.22process for the Minnesota Insurance Marketplace that, to the extent practicable, conforms
3.23to the principles and procedures contained in chapters 16B and 16C. In addition, the
3.24Minnesota Insurance Marketplace may enter into an agreement with the commissioner of
3.25administration for other services.

3.26    Sec. 5. [62V.04] GOVERNANCE.
3.27    Subdivision 1. Board. The Minnesota Insurance Marketplace is governed by a
3.28board of directors with seven members.
3.29    Subd. 2. Appointment. (a) Board membership of the Minnesota Insurance
3.30Marketplace consists of the following:
3.31(1) three members appointed by the governor with the advice and consent of both the
3.32senate and the house of representatives acting separately in accordance with paragraph (d),
3.33with one member representing the interests of individual consumers eligible for individual
3.34market coverage, one member representing individual consumers eligible for public
3.35health care program coverage, and one member representing small employers. Members
4.1are appointed to serve four-year staggered terms following the initial staggered-term
4.2lot determination;
4.3(2) three members appointed by the governor with the advice and consent of both
4.4the senate and the house of representatives acting separately in accordance with paragraph
4.5(d) who have demonstrated expertise, leadership, and innovation in the following areas:
4.6one member representing the areas of health administration, health care finance, health
4.7plan purchasing, and health care delivery systems; one member representing the areas of
4.8public health, health disparities, public health care programs, and the uninsured; and
4.9one member representing health policy issues related to the small group and individual
4.10markets. Members are appointed to serve four-year staggered terms following the initial
4.11staggered-term lot determination; and4.12(3) the commissioner of human services or a designee.
4.13(b) Section 15.0597 shall apply to all appointments, except for the commissioner
4.14and initial appointments.
4.15(c) The governor shall make appointments to the board that are consistent with
4.16federal law and regulations regarding its composition and structure.
4.17(d) Upon appointment by the governor, a board member shall exercise duties of
4.18office immediately. If both the house of representatives and the senate vote not to confirm
4.19an appointment, the appointment terminates on the day following the vote not to confirm
4.20in the second body to vote.
4.21(e) Initial appointments shall be made within 30 days of enactment.
4.22    Subd. 3. Terms. (a) Board members may serve no more than two consecutive
4.23terms, except for the commissioner or the commissioner's designee, who shall serve
4.24until replaced by the governor.
4.25(b) A board member may resign at any time by giving written notice to the board.
4.26(c) The appointed members under subdivision 2, paragraph (a), clauses (1) and (2),
4.27shall have an initial term of two, three, or four years, determined by lot by the secretary of
4.28state.
4.29    Subd. 4. Conflicts of interest. Within one year prior to or at any time during their
4.30appointed term, board members appointed under subdivision 2, paragraph (a), clauses (1)
4.31and (2), shall not be employed by, be a member of the board of directors of, or otherwise
4.32be a representative of a health carrier, health care provider, navigator, insurance producer,
4.33or other entity in the business of selling items or services of significant value to or through
4.34the Minnesota Insurance Marketplace. No member of the board may currently serve as a
4.35lobbyist, as defined under section 10A.01, subdivision 21.
5.1    Subd. 5. Acting chair; first meeting; supervision. (a) The governor shall designate
5.2as acting chair one of the appointees described in subdivision 2.
5.3(b) The board shall hold its first meeting within 60 days of enactment.
5.4(c) The board shall elect a chair to replace the acting chair at the first meeting.
5.5    Subd. 6. Chair. The board shall have a chair, elected by a majority of members.
5.6The chair shall serve for one year.
5.7    Subd. 7. Officers. The members of the board shall elect officers by a majority of
5.8members. The officers shall serve for one year.
5.9    Subd. 8. Vacancies. If a vacancy occurs for a board seat that was appointed
5.10by the governor, the governor shall appoint a new member within 90 days, and the
5.11newly appointed member shall be subject to the same confirmation process described in
5.12subdivision 2.
5.13    Subd. 9. Removal. A board member may be removed by the board only for cause,
5.14following notice, hearing, and a two-thirds vote of the board. A conflict of interest as
5.15defined in subdivision 4 shall be cause for removal from the board.
5.16    Subd. 10. Meetings. The board shall meet at least quarterly.
5.17    Subd. 11. Quorum. A majority of the members of the board constitutes a quorum,
5.18and the affirmative vote of a majority of members of the board is necessary and sufficient
5.19for action taken by the board.
5.20    Subd. 12. Compensation. Board members may be compensated according to
5.21section 15.0575.
5.22    Subd. 13. Advisory committees. (a) The board may establish, as necessary,
5.23advisory committees to gather information related to the operation of the Minnesota
5.24Insurance Marketplace.
5.25(b) Section 15.0597 shall not apply to any advisory committee established by the
5.26board.

5.27    Sec. 6. [62V.05] RESPONSIBILITIES AND POWERS OF THE MINNESOTA
5.28INSURANCE MARKETPLACE.
5.29    Subdivision 1. General. (a) The board shall operate the Minnesota Insurance
5.30Marketplace according to this chapter and applicable state and federal law.
5.31(b) The board has the power to:
5.32(1) employ personnel and delegate administrative, operational, and other
5.33responsibilities to the director and other personnel as deemed appropriate by the board.
5.34This authority is subject to chapters 43A and 179A. The director and managerial staff of
5.35the Minnesota Insurance Marketplace shall serve in the unclassified service and shall be
6.1governed by a compensation plan prepared by the board, submitted to the commissioner
6.2of management and budget for review and comment within 14 days of its receipt, and
6.3approved by the Legislative Coordinating Commission and the legislature under section
6.43.855, except that section 15A.0815, subdivision 5, paragraph (e), shall not apply;
6.5(2) establish the budget of the Minnesota Insurance Marketplace;
6.6(3) seek and accept money, grants, loans, donations, materials, services, or
6.7advertising revenue from government agencies, philanthropic organizations, and public
6.8and private sources to fund the operation of the Minnesota Insurance Marketplace;
6.9(4) contract for the receipt and provision of goods and services;
6.10(5) enter into information-sharing agreements with federal and state agencies and
6.11other entities, provided the agreements include adequate protections with respect to
6.12the confidentiality and integrity of the information to be shared, and comply with all
6.13applicable state and federal laws, regulations, and rules; and
6.14(6) take any other actions reasonably required to implement and administer its
6.15responsibilities.
6.16(c) The board shall establish policies and procedures to gather public comment and
6.17provide public notice in the State Register.
6.18(d) Within 180 days of enactment, the board shall establish bylaws, policies,
6.19and procedures governing the operations of the Minnesota Insurance Marketplace in
6.20accordance with this chapter.
6.21    Subd. 2. Operations funding. (a) Beginning January 1, 2015, the board may
6.22retain or collect up to 3.5 percent of premiums for individual market and small group
6.23market health benefit plans sold through the Minnesota Insurance Marketplace to fund
6.24the operations of the Minnesota Insurance Marketplace.
6.25(b) Prior to January 1, 2015, the Minnesota Insurance Marketplace shall retain or
6.26collect 3.5 percent of total premiums for individual market and small group market health
6.27benefit plans sold through the Minnesota Insurance Marketplace to fund the operations
6.28of the Minnesota Insurance Marketplace.
6.29    Subd. 3. Insurance producers. (a) The commissioner of management and
6.30budget, in consultation with the commissioner of commerce, shall establish minimum
6.31standards for certifying insurance producers who may sell health benefit plans through
6.32the Minnesota Insurance Marketplace. Producers must complete four hours of training
6.33in order to receive certification. Certification and training shall be administered by the
6.34commissioner of commerce, and the training required under this section shall qualify as
6.35continuing education required under chapter 60K.
7.1(b) Producer compensation shall be established by health carriers that provide health
7.2benefit plans through the Minnesota Insurance Marketplace. Compensation to producers
7.3must be equivalent for health benefit plans sold through the marketplace or outside the
7.4marketplace.
7.5(c) Each health carrier that offers or sells health benefit plans through the Minnesota
7.6Insurance Marketplace shall report in writing to the marketplace on a quarterly basis the
7.7compensation and other incentives it offers or provides to its insurance producers with
7.8regard to each type of health benefit plan the health carrier offers or sells both inside and
7.9outside the marketplace.
7.10(d) An insurance producer that offers health benefits plans for the small group
7.11market in the marketplace shall not discourage an employer from choosing to offer its
7.12employees a defined contribution type of group health benefit plan.
7.13(e) An insurance producer that offers health benefit plans through the Minnesota
7.14Insurance Marketplace shall disclose to prospective purchasers, at the time of the insurance
7.15producer's first contact with the prospective purchaser, the health carriers for which the
7.16insurance producer is authorized to sell health benefit plans through the exchange.
7.17    Subd. 4. Navigator; in-person assisters; call center. (a) The board may establish
7.18policies and procedures for the ongoing operation of a navigator program, in-person
7.19assister program, call center, and customer service provisions for the Minnesota Insurance
7.20Marketplace to be implemented beginning January 1, 2015.
7.21(b) Until the implementation of the policies and procedures described in paragraph
7.22(a), the following shall be in effect:
7.23(1) the navigator program shall be fulfilled through section 256.962;
7.24(2) entities eligible to be navigators, including insurance producers, Indian tribes and
7.25organizations, and counties may serve as in-person assisters;
7.26(3) the commissioner of management and budget shall establish requirements
7.27and compensation for the in-person assister program within 30 days of enactment.
7.28Compensation for in-person assisters must take into account any other compensation
7.29received by the in-person assister for conducting the same or similar services; and
7.30(4) call center operations shall utilize existing state resources and personnel,
7.31including referrals to counties for medical assistance.
7.32(c) The commissioner of management and budget shall establish a toll-free number
7.33for the Minnesota Insurance Marketplace and may hire and contract for additional
7.34resources as deemed necessary.
7.35    Subd. 5. Health carrier requirements; participation. (a) Beginning January 1,
7.362015, the board shall have the power to establish certification requirements for health
8.1carriers and health benefit plans offered through the Minnesota Insurance Marketplace
8.2unless by June 1, 2013, the legislature enacts regulatory requirements that:
8.3(1) apply uniformly to all health carriers and health benefit plans in the individual
8.4market;
8.5(2) apply uniformly to all health carriers and health benefit plans in the small
8.6group market; and
8.7(3) satisfy federal certification requirements for the Minnesota Insurance
8.8Marketplace.
8.9(b) The board has the power to select health carriers and health benefit plans for
8.10participation in the Minnesota Insurance Marketplace from the health carriers and health
8.11benefit plans that have met certification requirements. Selection must be determined in the
8.12interests of the individual consumers and employers and within federal requirements.
8.13(c) For health benefit plans offered through the Minnesota Insurance Marketplace
8.14beginning January 1, 2015, health carriers must use the most current addendum for Indian
8.15health care providers approved by Centers for Medicare and Medicaid Services and the
8.16tribes as part of their contracts with Indian health care providers.
8.17    Subd. 6. Appeals. (a) The board may conduct hearings, appoint hearing officers,
8.18and recommend final orders related to appeals of any Minnesota Insurance Marketplace
8.19determinations, except for those determinations identified in paragraph (d).
8.20(b) The Minnesota Insurance Marketplace may establish service-level agreements
8.21with state agencies to conduct hearings for appeals. Notwithstanding section 471.59,
8.22subdivision 1, a state agency is authorized to enter into service-level agreements for this
8.23purpose with the Minnesota Insurance Marketplace.
8.24(c) For proceedings under this subdivision, the Minnesota Insurance Marketplace may
8.25be represented by an attorney who is an employee of the Minnesota Insurance Marketplace.
8.26(d) This subdivision does not apply to appeals of determinations where a state
8.27agency hearing is available under section 256.045.
8.28    Subd. 7. Agreements; consultation. (a) The board shall:
8.29(1) establish and maintain an agreement with the chief information officer of
8.30the Office of Enterprise Technology for information technology services that ensures
8.31coordination with public health care programs. The board may establish and maintain
8.32agreements with the chief information officer of the Office of Enterprise Technology for
8.33other information technology services, including an agreement that would permit the
8.34Minnesota Insurance Marketplace to administer eligibility for additional health care and
8.35public assistance programs under the authority of the commissioner of human services;
9.1(2) establish and maintain an agreement with the commissioner of human services
9.2for cost allocation and services regarding eligibility determinations and enrollment for
9.3public health care programs. The board may establish and maintain an agreement with the
9.4commissioner of human services for other services; and
9.5(3) establish and maintain an agreement with the commissioners of commerce
9.6and health for services regarding enforcement of Minnesota Insurance Marketplace
9.7certification requirements for health benefit plans offered through the Minnesota Insurance
9.8Marketplace. The board may establish and maintain agreements with the commissioners
9.9of commerce and health for other services.
9.10(b) The board shall consult with the commissioners of commerce and health
9.11regarding the operations of the Minnesota Insurance Marketplace.
9.12(c) The board shall consult with Indian tribes and organizations regarding the
9.13operation of the Minnesota Insurance Marketplace.
9.14(d) The board shall establish advisory committees to provide the health care industry,
9.15consumers, and other stakeholders with the opportunity to share their perspectives
9.16regarding the operations of the Minnesota Insurance Marketplace.

9.17    Sec. 7. [62V.06] DATA.
9.18(a) The definitions in section 13.02 apply to this section.
9.19(b) Government data of the Minnesota Insurance Marketplace on individuals,
9.20employees of employers, and employers using the Minnesota Insurance Marketplace are
9.21private data on individuals or nonpublic data. The Minnesota Insurance Marketplace may
9.22share not public data with state and federal agencies and other entities if the exchange
9.23of the data is reasonably necessary to carry out the functions of the Minnesota Insurance
9.24Marketplace. State agencies shall share not public data with the Minnesota Insurance
9.25Marketplace if the exchange of the data is reasonably necessary to carry out the functions
9.26of the Minnesota Insurance Marketplace. Notwithstanding the provisions governing
9.27summary data in sections 13.02, subdivision 19, and 13.05, subdivision 7, the Minnesota
9.28Insurance Marketplace may derive summary data from nonpublic data under this section.

9.29    Sec. 8. [62V.07] FUNDS.
9.30All funds received by the Minnesota Insurance Marketplace must be deposited in a
9.31dedicated fund which may earn interest and are appropriated to the Minnesota Insurance
9.32Marketplace for the purpose for which the funds were received. Funds do not cancel
9.33and are available until expended.

10.1    Sec. 9. [62V.08] REPORT.
10.2The Minnesota Insurance Marketplace shall submit a report to the legislature by
10.3January 15, 2015, and each January 15 thereafter, on: (1) the performance of Minnesota
10.4Insurance Marketplace operations; (2) meeting the Minnesota Insurance Marketplace
10.5responsibilities; and (3) an accounting of the Minnesota Insurance Marketplace budget
10.6activities.

10.7    Sec. 10. [62V.09] EXPIRATION AND SUNSET EXCLUSION.
10.8Notwithstanding Minnesota Statutes, section 15.059, the Minnesota Insurance
10.9Marketplace Act shall not expire. The board is not subject to review or sunsetting under
10.10Minnesota Statutes, chapter 3D.

10.11    Sec. 11. [62V.10] RIGHT NOT TO PARTICIPATE.
10.12Nothing in this chapter infringes on the right of a Minnesota citizen not to participate
10.13in the Minnesota Insurance Marketplace.

10.14    Sec. 12. TRANSITION OF AUTHORITY.
10.15(a) Upon the effective date of this act, the commissioner of management and budget
10.16shall exercise all authorities and responsibilities under Minnesota Statutes, sections
10.1762V.03 and 62V.05 until the board has satisfied the requirements of Minnesota Statutes,
10.18section 62V.05, subdivision 1, paragraph (d).
10.19(b) Upon the establishment of bylaws, policies, and procedures governing the
10.20operations of the Minnesota Insurance Marketplace by the board as required under
10.21Minnesota Statutes, section 62V.05, subdivision 1, paragraph (d), all personnel, assets,
10.22contracts, obligations, and funds managed by the commissioner of management and
10.23budget for the design and development of the Minnesota Insurance Marketplace shall be
10.24transferred to the board. Existing personnel managed by the commissioner of management
10.25and budget for the design and development of the Minnesota Insurance Marketplace shall
10.26staff the board upon enactment.

10.27    Sec. 13. MINNESOTA COMPREHENSIVE HEALTH INSURANCE
10.28TERMINATION.
10.29The commissioner of commerce, in consultation with the board of directors of the
10.30Minnesota Comprehensive Health Insurance Association, has the authority to develop and
10.31implement the phase out and eventual termination of coverage provided by the Minnesota
11.1Comprehensive Health Insurance Association under Minnesota Statutes, chapter 62E. The
11.2phase out of coverage shall begin no sooner than January 1, 2014.

11.3    Sec. 14. EFFECTIVE DATE.
11.4Sections 1 to 13 are effective the day following final enactment. Any actions taken
11.5by any state agencies in furtherance of the design, development, and implementation of the
11.6Minnesota Insurance Marketplace prior to the effective date shall be considered actions
11.7taken by the Minnesota Insurance Marketplace and shall be governed by the provisions of
11.8this chapter and state law. Health benefit plan coverage through the Minnesota Insurance
11.9Marketplace is effective January 1, 2014.