MINNESOTA

Overview

Minnesota’s active legislative efforts aimed to increase healthcare price transparency and cost containment demonstrate the state’s commitment to improve its health care system. A leader in price transparency, the state has an active All-Payer Claims Database (APCD), which has been expanded to study cost, quality, and utilization. The state mandates that the Minnesota Hospital Association provide a hospital-specific performance and charge database for the 50 most common inpatient diagnosis-related groups. Minnesota also earns top grades for protecting patients from surprise and balance billing. In both emergency and non-emergency situations, a network provider is prohibited from billing an enrollee for any amount in excess of the allowable amount the health carrier has contracted for with the provider as total payment for the health care service. In recent terms, the state has introduced legislation that would require health plan companies to develop and implement a right to shop/shared savings incentive program.

In addition to promoting price transparency, Minnesota regulates anticompetitive practices in insurer and provider contracts in several ways. To encourage greater price transparency, the Patient Protection Act prohibits gag clauses in insurer-provider contracts and requires providers to give consumers a “good faith estimate” of the cost of common medical procedures within 10 days of request. Minnesota is also one of the few states that bans most favored nation clauses in provider contracts as well as exclusive contracting practices between health care network cooperative and healthcare providers.

Minnesota has promoted the use of telehealth well before its popularity brought on by the coronavirus pandemic. The Minnesota Telemedicine Act, enacted in 2015, provides parity between telemedicine and in-person services and requires health carriers to reimburse telehealth services on the same basis and at the same rate as the health carrier would apply to those services if the services had been delivered in person.

To help constituents deal with skyrocketing insurance costs, the Minnesota Legislature passed a bill in 2017 that allocated $271 million to form a publicly funded reinsurance pool that would help health insurance companies pay the most expensive medical claims, thereby lowering overall insurance premiums. In Minnesota’s reinsurance program, health insurers are eligible for reimbursements from the state for claims between $50,000 and $250,000. The insurers are responsible for amounts over $250,000. The reinsurance pool has performed exceptionally well and has decreased premiums by 15% in the first year. The state also continues to introduce state market initiatives including proposals to implement a public option via MinnesotaCare Buy-In, as well as proposed studies to analyze the cost and benefit of a potential universal health care system compared to the current healthcare financing system.

See below for an overview of existing Minnesota state mandates. Click on citation tab for detailed information of specific statutes (click link to download statute text).

State Action


Latest Legislative Session: 1/5/2021 - 5/17/2021 (2021-2022 term). *Current session bill updates are ongoing. Check back weekly for updates.

Filter by Key Issue, Year, or Status
Download User Guide

© 2018-2020 The SLIHCQ DatabaseInitial funding for this project was provided by the Robert Wood Johnson Foundation. The views expressed here do not necessarily reflect the views of the Foundation.

Filter by Key Issue
Download User Guide

© 2018-2020 The SLIHCQ DatabaseInitial funding for this project was provided by the Robert Wood Johnson Foundation. The views expressed here do not necessarily reflect the views of the Foundation.
Filter by Key Issue


Additional Resources

STATE  BUDGET

The Minnesota state budget operates on a biennium cycle, covering two fiscal years. Minnesota’s fiscal year begins on July 1 and ends on June 30 of the following year. To view Minnesota’s latest enacted budget, click here.

REGULATION & ENFORCEMENT

  • On June 29, 2015 the Federal Trade Commission (FTC) responded to a request from two Minnesota state legislators to analyze the competitive impact of recent amendments to the Minnesota Government Data Practices Act (MGDPA). The amendments may require health plans contracting with the state to make information normally deemed competitively sensitive available to the public. The FTC expressed concern that this change would harm consumers by increasing the potential for collusion and decreasing the use of selective contracting. Read the FTC’s Press Release and Blog Post.

KEY RESOURCES

 

News & Articles