MINNESOTA

Overview

Minnesota has an active All-Payer Claims Database (APCD), which recently expanded to study cost, quality, and utilization. The state also 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 aims to contain healthcare costs through bans on most favored nation clauses and anticompetitive practices in provider contracts.

In the 2019-2020 legislative term, the Minnesota state legislature introduced over 100 bills aimed at increasing healthcare price transparency and cost containment. Notable legislation include proposal to implement public option via MinnesotaCare Buy-In, as well as increased price transparency by way of right to shop/shared savings programs and balance/surprise billing regulation. In addition, Minnesota stepped up its efforts to tackle prescription drug prices by introducing a number of bills that would regulate PBMs and drug manufacturers in order to curb price gouging in the pharmaceutical industry. Most of these bills are still pending at the end of the 2019 session and will be carried over to 2020 for further legislative action.

Minnesota was also active throughout the 2017-2018 legislative term, enacting two laws that add price transparency (S.F. 3480) and drug choices (H.F. 3196) to the health care system. SF 3480 requires providers to give consumers a “good faith estimate” of the cost of common medical procedures within 10 days of request, while HF 3196 requires health plans to allow providers to avoid step therapy protocols, which requires a physician to try a cheaper alternative before using a more expensive remedy. The two bills were approved nearly unanimously in both houses.  The laws demonstrate the state’s efforts to improve its health care system, although already considered to be one of the best in the nation.

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 Minnesota Legislature was active throughout the 2018 legislative term, enacting two laws that add price transparency (S.F. 3480) and drug choices (H.F. 3196) to the health care system. SF 3480 requires providers to give consumers a “good faith estimate” of the cost of common medical procedures within 10 days of request, while HF 3196 requires health plans to allow providers to avoid step therapy protocols, which requires a physician to try a cheaper alternative before using a more expensive remedy. The two bills were approved nearly unanimously in both houses.  The laws demonstrate the state’s efforts to improve its health care system, although already considered to be one of the best in the nation.

State Action


2020 Legislative Session: 2/11/2020 - 5/18/2020 (2019-2020 term). *Current session bill updates are ongoing. Check back weekly for updates.

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© 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.

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© 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.
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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. Minnesota enacted its 2019-2020 Budget in the first special legislative session of 2019. To view Minnesota’s Department of Health and Human Services 2019-2020 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