Purpose of the Bill

The proposed bill aims to clarify that direct primary care agreements are distinct from traditional health insurance and are not subject to insurance regulations in Minnesota.

Main Provisions

• Clarification of Direct Primary Care Agreements: The bill explicitly states that direct primary care agreements do not qualify as a health plan, policy of insurance, or any other form of insurance coverage that is regulated under various Minnesota insurance statutes (chapters 62C, 62D, 64B, 62H, or 62N).

• Definition of Direct Primary Care Agreement: A direct primary care agreement is defined as a written contract between a patient (or their legal representative) and a primary care provider, outlining the terms of service in exchange for a periodic fee.

• Termination Flexibility: The agreement must allow either party to terminate the contract in writing without penalties or termination fees, though notice up to 60 days might be required as specified in the agreement.

• Fee and Service Description: The agreement should clearly describe the healthcare services covered in return for the periodic fee and specify any additional fees. It also allows a third party to cover these fees on behalf of the patient.

• Prohibition of Additional Compensation: It prohibits the primary care provider from charging or receiving extra payment for the services included within the periodic fee.

• Notice of Non-Insurance: The agreement must clearly state that it is not health insurance.

Significant Changes

This bill proposes exemptions for direct primary care agreements and the primary care providers who enter into them from being regulated under several chapters of Minnesota's insurance laws. This effectively separates direct primary care agreements from the typical regulatory framework applicable to insurance products.

Relevant Terms

direct primary care, health insurance, insurance regulation, healthcare provider, periodic fee, termination clause, insurance statutes, third-party payment.