Purpose of the Bill

The purpose of this bill is to define and regulate direct primary care agreements in Minnesota. It explicitly clarifies that these agreements should not be considered traditional health insurance.

Main Provisions

• Definition of Direct Primary Care Agreement: The bill defines it as a written agreement between a patient (or their legal representative) and a primary care provider. This agreement allows either party to terminate it without penalty, and it outlines the healthcare services provided in return for a periodic fee.

• Exemption from Insurance Regulation: Direct primary care agreements are not regulated as insurance. The bill states that these agreements do not constitute a health plan, insurance policy, or similar health coverage, thus exempting them from existing insurance regulations in Minnesota.

• Fee Structure: The agreement must specify the periodic fees charged and can include additional fees, which can be paid by a third party. However, the provider cannot charge more for services already covered by the periodic fee.

• Notice Requirements: The agreement must clearly state that it is not health insurance and must allow termination with notice of no more than 60 days.

Significant Changes to Existing Law

This bill would introduce a new section into the Minnesota Statutes that clearly establishes direct primary care agreements as separate from traditional insurance models, removing them from regulation under numerous insurance-related statutes.

Relevant Terms

direct primary care, health insurance, primary care provider, periodic fee, health services, insurance regulation, Minnesota Statutes, patient agreement, non-insurance.