MINNESOTA
JUNE 2017
PHYSICIAN
THE INDEPENDENT MEDICAL BUSINESS JOURNAL
Volume XXXI, No. 3
A change to Minnesota law Licensure of for-profit HMOs BY STEPHEN WARCH, JD, AND LINDSAY MCLAUGHLIN, JD, MPH
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Addressing rising health care costs BY GOVERNOR MARK DAYTON; SENATOR TONY LOUREY; REPRESENTATIVE CLARK JOHNSON; AND EMILY PIPER, JD
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he cost of rising health insurance premiums along with large deductibles has hit Minnesotans hard and made health care unaffordable. To help more Minnesotans afford health care insurance premiums, a proposed buy-in would offer high-quality care at a reasonable cost. Addressing rising health care costs to page 164
arly in the 2017 legislative session, the Minnesota Legislature passed a health insurance market reform bill that will change which companies can sell products in the state’s individual market by making it possible for for-profit entities to be licensed as HMOs under Chapter 62D (S.F. 1, 90th Leg., Reg. Sess. [Minn. 2017]). Since enacting the Health Maintenance Act of 1973, Minnesota law limited licensure of health maintenance organizations (HMOs) to nonprofit companies. Among other health insurance reform efforts in the bill, some legislators hope this change will encourage more competition in the Minnesota health insurance market, in turn increasing health insurance product options for Minnesotans while lowering their health insurance premiums. However, other legislators have expressed concerns that the business model of for-profit HMOs will A change to Minnesota law to page 184