HF4333

Supplemental health insurance product established to cover short-term home health and nursing care, and civil penalties provided.
Legislative Session 94 (2025-2026)

Related bill: SF4390

AI Generated Summary

Purpose

Establishes a new supplemental health insurance product to cover short-term home health and nursing care, and updates related laws. It also revises penalties for violations and expands funding rules for certain nonmedical long-term care supports.

What the bill would do (Main Provisions)

Create a new insurance product: shortterm home health and nursing care insurance, classified as a fixed indemnity policy. This product is designed to pay predetermined fixed benefits for specified home health and nursing care services.
Define key policy terms and styles:
- Fixed indemnity policy: pays fixed benefits rather than expenses incurred; may include some policies with mixed expense-incurred and fixed benefits.
- Guaranteed renewable and noncancelable options: protections on renewal, with some rate changes allowed on a class basis if approved by the commissioner.
- Average annualized premium: used for rate filings, reflecting the expected distribution of policyholders by factors like age, sex, coverage amount, etc.
- Freelook period: at least 30 days for insureds to review and cancel for a full refund.
- Qualified insurer: an insurer licensed in Minnesota to offer this product.
- Activities of daily living (ADLs) and cognitive impairment: triggers for benefits under the new product.
- Waiting period: a defined time before coverage becomes effective; cannot be altered if the policy is replaced.
Coverage rules and limits:
- Benefits trigger when the insured cannot perform at least two ADLs with substantial assistance or has cognitive impairment.
- Maximum benefit period is 360 days for a single policy.
- Policy must include a freelook period and specific renewal/discontinuation protections (e.g., not canceled due to health deterioration; renewal can be denied only for nonpayment, fraud, misrepresentation, loss of insurer authority, or exhaustion of benefits).
- When converting or replacing a policy, the original waiting period cannot be increased.
Disclosures required:
- Clear notice that this is supplemental health insurance and not long-term care insurance or MN partnership long-term care coverage.
- Clear explanations of the freelook period and all renewability/continuity provisions.
Regulatory enforcement and penalties:
- Violations of the insurance provisions can trigger fines (up to $200 per offense) and license revocation for violators or nonresident insurers that willfully violate state law.
Relation to other long-term care laws:
- Clarifies that shortterm home health and nursing care insurance is separate from long-term care insurance (as defined in existing statutes).
- Excludes certain types of policies (e.g., Medicare supplement, major medical, disability income, etc.) from being considered shortterm home health and nursing care insurance.

How it changes existing law

Amends Minnesota Statutes to:
- Expand and clarify definitions related to long-term care, home health, and shortterm insurance.
- Add the new shortterm home health and nursing care insurance to the list of covered policy forms and adjust how rate information is calculated.
- Update penalties for noncompliance with insurance provisions.
Aligns the new product with existing long-term care policy exceptions (e.g., certain employer-provided or union-related plans may have different requirements).
Introduces a framework for approval by the insurance commissioner before the product can be offered.

Section-by-section highlights (conceptual)

Section 1: Defines terms and sets the framework for fixed indemnity and shortterm home health and nursing care insurance, including renewability concepts and rate-related terminology.
Section 2: Clarifies long-term care policy definitions and exemptions (who they apply to and who is exempt).
Section 3: Establishes the actual shortterm home health and nursing care insurance rules, including:
- Eligible services and providers (home health agencies, nursing facilities, plan of care).
- Coverage requirements (ADLs, cognitive impairment, 360-day limit, freelook, renewal rules).
- Disclosures and required policy language.
Section 4: Adds penalties for violations of insurance provisions and enforcement mechanisms.
Section 5: Modifies the eligibility and funding structure for the alternative care program (nonmedical assistance recipients), detailing who can receive funding, monthly/annual cost limits, depreciation/adjustments, eligibility extensions, and interaction with medical assistance/elderly waiver programs.
Other notes: References to various sections of Minnesota law (e.g., 62A.135, 62A.46, 256B.0913) to implement the changes and ensure consistency with existing programs.

Significant changes to existing law

Creation of a new supplemental insurance product (shortterm home health and nursing care) with explicit definitions, eligibility, and benefit rules.
Introduction of fixed indemnity concepts into the shortterm care space and explicit protections around renewals, waiting periods, and cancellation.
New mandatory disclosures for consumers to understand that the product is supplemental and not long-term care insurance.
New or enhanced penalties for violations of insurance laws.
Substantial updates to the alternative care funding program for nonmedical assistance recipients, including eligibility criteria, funding limits, service caps, and interactions with MA/elderly waiver programs.

Potential impacts and who it affects

Consumers: A potential new option to help pay for short-term home health and nursing care needs, with defined benefit limits and protections.
Insurers: Must develop and obtain approval for the new product, adhere to definitions like fixed indemnity and freelook, and comply with new disclosure and renewability requirements.
Regulators: Need to approve product forms and oversee enforcement of new penalties and rules.
Individuals relying on nonmedical alternative care funding: The bill tightens or clarifies eligibility and funding rules, including monthly limits and interactions with MA/elderly waiver programs.

Notes on terminology (for clarity)

Shortterm home health and nursing care insurance: the new product being created.
Fixed indemnity policy: a policy that pays a predetermined fixed amount per claim or period.
Guaranteed renewable / noncancelable: renewal protections and limits on changing coverage or rates.
Freelook period: a consumer review window (at least 30 days).
Plan of care, home health agency, nursing facility: defined care providers and formal care plans used to determine eligibility.
Activities of daily living (ADLs) and cognitive impairment: health status measures triggering benefits.
Qualified insurer: the entity allowed to offer this new product.
Alternative care program (nonmedical assistance recipients): state funding program for long-term supports outside medical assistance.
Elderly waiver and medical assistance (MA): existing programs with which the new funding rules interact.

Relevant terms shortterm home health and nursing care insurance; fixed indemnity policy; guaranteed renewable; noncancelable; average annualized premium; freelook period; qualified insurer; activities of daily living (ADLs); cognitive impairment; plan of care; home health agency; nursing facility; waiting period; disclosures; longterm care policy; alternative care program; nonmedical assistance recipients; elderly waiver; medical assistance (MA); case mix classification; monthly service limit; asset transfer penalty; spenddown; maintenance needs allowance; consumer-directed supports; lead agency.

Bill text versions

Introduction PDF PDF file

Past committee meetings

Commerce Finance and Policy on: March 24, 2026 08:15

Actions

Date	Chamber	Type	Name	Committee Name
March 16, 2026	House	Action	Introduction and first reading, referred to	Commerce Finance and Policy
April 07, 2026	House	Action	Committee report, to adopt
April 07, 2026	House	Action	Second reading

Citations

[
  {
    "analysis": {
      "added": [
        "Definition of fixed indemnity policy (includes short-term home health and nursing care insurance under 62A.70)",
        "Definitions for guaranteed renewable, noncancelable, and average annualized premium",
        "Clarification of rate filing concepts (average annualized premium for pricing)"
      ],
      "removed": [],
      "summary": "Amends 62A.135 to add and define short-term fixed indemnity concepts used for a supplemental health insurance product, including the integration of short-term home health and nursing care insurance under 62A.70 and related rate and policy terminology.",
      "modified": []
    },
    "citation": "62A.135",
    "subdivision": "1"
  },
  {
    "analysis": {
      "added": [
        "Long-term care policy definitions and scope clarified in relation to short-term home health and nursing care insurance",
        "Exemption language for certain employer-sponsored and labor union arrangements from 62A.46 to 62A.56 until a stated date"
      ],
      "removed": [],
      "summary": "Amends long-term care policy provisions; clarifies scope and exemptions related to long-term care policies and the applicability of sections 62A.46 to 62A.56.",
      "modified": [
        "Clarifies that long-term care policy exclusions apply to short-term home health and nursing care insurance under 62A.70"
      ]
    },
    "citation": "62A.46",
    "subdivision": "2"
  },
  {
    "analysis": {
      "added": [
        "Definitions for home health agency, nursing facility, plan of care, insured, and short-term services",
        "Definition of short-term home health and nursing care insurance as a policy form that provides home health and/or nursing care services",
        "Clarifications around eligibility (e.g., cognitive impairment and ADL criteria)"
      ],
      "removed": [],
      "summary": "Establishes short-term home health and nursing care insurance definitions and related terms, including eligibility, services, and duration.",
      "modified": []
    },
    "citation": "62A.70",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Penalty provision for violations of sections 60A.06(3) or 62A.01–62A.10 or 62A.70",
        "Fine up to $200 per offense",
        "Commissioner may revoke licenses for out-of-state or foreign insurers or agents who violate listed provisions"
      ],
      "removed": [],
      "summary": "Penalties for violations relating to insurance provisions; authorizes fines and license revocation for noncompliance.",
      "modified": []
    },
    "citation": "72A.13",
    "subdivision": "1"
  },
  {
    "analysis": {
      "added": [
        "Eligibility criteria (citizenship/national status, assessment-determined need for nursing facility-level care, age 65+, MA eligibility timing, asset transfer penalties, etc.)",
        "Program-related financial caps (monthly service limits, annual aggregation, and adjustments to limits)",
        "Conditions on funding when other coverage exists (MA, waiver obligations, employer/third-party insurance limits)"
      ],
      "removed": [],
      "summary": "Elifies eligibility criteria for funding under the alternative care program for nonmedical assistance recipients and outlines related limits and conditions.",
      "modified": [
        "Details on monthly and annual cost calculations, case-mix adjustments, and eligibility extensions/reassessment procedures"
      ]
    },
    "citation": "256B.0913",
    "subdivision": "4"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References Activities of Daily Living (ADL) meaning as defined in 62S.01, guiding eligibility for short-term care benefits.",
      "modified": [
        "Links ADL definition to the scope of short-term home health and nursing care insurance"
      ]
    },
    "citation": "62S.01",
    "subdivision": "2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References cognitive impairment meaning for use in short-term health policy provisions.",
      "modified": [
        "Links cognitive impairment meaning to the short-term home health and nursing care policy definitions"
      ]
    },
    "citation": "62S.01",
    "subdivision": "9"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines home health or related terms for long-term care policy context, referencing 62A.46(10).",
      "modified": [
        "Cross-references home health agency definition within 62A.46"
      ]
    },
    "citation": "62A.46",
    "subdivision": "10"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Contextual cross-reference within long-term care policy provisions.",
      "modified": []
    },
    "citation": "62A.46",
    "subdivision": "3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Contextual cross-reference within long-term care policy provisions.",
      "modified": []
    },
    "citation": "62A.46",
    "subdivision": "8"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References to chapter 62C (insurer licensing) related to qualified insurers.",
      "modified": []
    },
    "citation": "62C",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cross-reference to penalties under 60A.06; used in the penalties provision for insurance violations.",
      "modified": []
    },
    "citation": "60A.06",
    "subdivision": "3"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cross-reference to broad range of insurance provisions applicable to penalties for violations.",
      "modified": []
    },
    "citation": "62A.01 to 62A.10",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reiterates that short-term home health and nursing care insurance is not long-term care insurance, and defines the relationship with 62A.70.",
      "modified": []
    },
    "citation": "62A.70",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Exemption for associations from certain long-term care policy requirements"
      ],
      "removed": [],
      "summary": "Exemption clause for associations from 62A.46–62A.56 until July 1, 1988.",
      "modified": []
    },
    "citation": "62A.31",
    "subdivision": "1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines Medicare supplement policies in the context of short-term coverage, cross-referencing Medicare-related standards.",
      "modified": []
    },
    "citation": "62A.3099",
    "subdivision": "18"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to community assessment for eligibility determinations under the alternative care program.",
      "modified": []
    },
    "citation": "256B.0911",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Exemplifies asset-related limits (home equity) for alternative care funding eligibility.",
      "modified": []
    },
    "citation": "256B.056",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Asset transfer penalties or related penalties tied to medical assistance eligibility considerations.",
      "modified": []
    },
    "citation": "256B.0595",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Foundational definitions for the alternative care program, including case-mix and service limit constructs.",
      "modified": []
    },
    "citation": "256S.01",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Describes monthly service limits and related program mechanics for alternative care.",
      "modified": []
    },
    "citation": "256S.04",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Annual adjustments to monthly service limits under the alternative care program.",
      "modified": []
    },
    "citation": "256S.05",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Case-mix classification framework and related monthly cost limits for alternative care services.",
      "modified": []
    },
    "citation": "256S.18",
    "subdivision": ""
  }
]

Progress through the legislative process

17%

In Committee