§ 54-03-28 — Health insurance mandated coverage of services - Cost-benefit analysis requirement

requirement.
1. The legislative management shall adopt a procedure for identifying measures and
proposed measures mandating health insurance coverage of services or payment for
specified providers of services. The procedure must include solicitation of draft
measures and proposals during the interim between legislative sessions from
legislators and agencies with bill introduction privileges and must include deadlines for
identification of the measures or proposals.
2. Except as provided in subsection 3, a committee of the legislative assembly may not
act on a legislative measure the legislative management or committee determines

mandates health insurance coverage of services or payment for specified providers of
services unless the measure as recommended by the committee provides:
a. The measure is effective through June thirtieth of the next odd-numbered year
following the year in which the legislative assembly enacted the measure, and
after that date the measure is ineffective.
b. The application of the mandate is limited to the public employees health
insurance program and the public employee retiree health insurance program.
The application of the mandate begins with every contract for health insurance
which becomes effective after June thirtieth of the year in which the measure
becomes effective.
c. That for the next legislative assembly, the public employees retirement system
shall provide to the employee benefits programs committee a report regarding the
effect of the mandated coverage or payment on the system's health insurance
programs. The report must include information on the utilization and costs relating
to the mandated coverage or payment and a recommendation on whether the
coverage or payment should continue for the system's health insurance
programs.
3. If the legislative management determines a legislative measure mandating health
insurance coverage of services or payment for specified providers of services has
completed the process under subsection 2, the measure may not be referred to a
committee of the legislative assembly unless a cost-benefit analysis provided by the
legislative management is appended to the measure.
a. If a committee of the legislative assembly determines a measure or a proposed
amendment to the measure mandating health insurance coverage of services or
payment of specified providers of services was referred to committee without a
cost-benefit analysis, the committee shall request the legislative management
provide a cost-benefit analysis.
b. The committee may not act on the measure unless the measure is accompanied
by the cost-benefit analysis.
4. Factors considered in the cost-benefit analysis must include:
a. The extent to which the proposed mandate would increase or decrease the cost
of the service.
b. The extent to which the proposed mandate would increase the appropriate use of
the service.
c. The extent to which the proposed mandate would increase or decrease the
administrative expenses of insurers and the premium and administrative
expenses of insureds.
d. The impact of the proposed mandate on the total cost of health care.
5. The legislative council shall contract with a private entity to provide the legislative
management the cost-benefit analysis required by this section.