McAlpin Agency, Inc.

Prescription Drug I. D. Cards.
Legislation to require health plans to include information about their prescription drug program on the plan’s uniform identification cards was enacted. The goal of the legislation is to make it easier for pharmacies to process health insurance claims. The drug program information must include a phone number or names of contact persons that a pharmacy or a policyholder may call for assistance.

Omnibus Commerce Department Insurance Bill.
Law changes include an increase in the annual maximum lifetime benefit for qualified plans from $500,000 to $1,000,000 and a demonstration project requested by Blue Cross to provide a hybrid Medicare supplement insurance product in Minnesota. The bill would also require health plans to provide instructions necessary to enable laid-off or terminated employees, their spouses or dependent children to elect continuation of coverage. The information needs only to be provided upon their request.

HIV Testing – Insurance Applications.
This new law clarifies what information is needed regarding the use of HIV tests in insurance applications for life and health insurance. It will eliminate numerous confusing disclosures from insurance applications that would have been required under the current law. The bill was sponsored by the Insurance Federation of Minnesota and has been signed into law by the governor.

Senior Wage Loss Coverage.
Another new law was necessitated by a recent court decision, this one against American Family Insurance that held that the insurer is legally responsible for determining if policyholders over 65 years of age need wage loss coverage under their no-fault automobile insurance.  Under current law, insureds over 65 years of age who have no wages or work income are given a premium reduction if they elect not to purchase this coverage.  The normal standard of practice is to allow the policyholder to decide if this coverage is necessary.  This legislation, sponsored by the Minnesota Insurance Federation, would restate the intent of the original law that the option to decline wage loss coverage lies with the policyholder and not the insurer.  Under the new law, the insurer would be required to provide notice to insureds of their rights to opt-out of wage loss coverage on the first renewal after the policyholder turns 65 and at least annually thereafter.  Agents would be required to notify insureds age 65 or older of this option at the time of initial application.

Direct Surety Prohibition.
A bill sponsored by the St. Paul Companies will now prohibit a practice referred to as "directed surety" where a local unit of government directs a contractor to a specific insurance company or agency for surety bonds for government construction projects. Under the new law signed by the governor effective August 1, construction firms winning government contracts will be able to shop around for their required bonds.

Workers’ Compensation – Independent Contractors.
A bill brought to the legislature by the Workers’ Compensation Advisory Council, a joint labor and management committee under the state department of labor, makes minor changes in workers’ compensation laws.  Of interest to agents is a provision relating to the determination of independent contractor status, which adds language to the state’s nine-point test for independent contractors.  A contractor will no longer need a federal employer identification number.  Instead they may qualify by having filed business or self-employment income tax returns with the Internal Revenue Service in the previous year.