1.1.................... moves to amend H.F. No. 3056 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2008, section 62U.04, subdivision 3, is amended to read:
1.4    Subd. 3. Provider peer grouping. (a) The commissioner shall develop a peer
1.5grouping system for providers based on a combined measure that incorporates both
1.6provider risk-adjusted cost of care and quality of care, and for specific conditions as
1.7determined by the commissioner. In developing this system, the commissioner shall
1.8consult and coordinate with health care providers, health plan companies, state agencies,
1.9and organizations that work to improve health care quality in Minnesota. For purposes of
1.10the final establishment of the peer grouping system, the commissioner shall not contract
1.11with any private entity, organization, or consortium of entities that has or will have a direct
1.12financial interest in the outcome of the system.
1.13    (b) Beginning June 1 October 8, 2010, the commissioner shall disseminate
1.14information to providers on their cost of care, resource use, quality of care, and the results
1.15of the grouping developed under this subdivision in comparison to an appropriate peer
1.16group. Any analyses or reports that identify providers may only be published after the
1.17provider has been provided the opportunity by the commissioner to review the underlying
1.18data and submit comments. The provider shall have 21 90 days to review the data for
1.19accuracy.
1.20    (c) The commissioner shall establish an appeals process to resolve disputes from
1.21providers regarding the accuracy of the data used to develop analyses or reports.
1.22    (d) Beginning September 1, 2010 2011, the commissioner shall, no less than
1.23annually, publish information on providers' cost, quality, and the results of the peer
1.24grouping process. The results that are published must be on a risk-adjusted basis.

1.25    Sec. 2. Minnesota Statutes 2008, section 62U.04, is amended by adding a subdivision
1.26to read:
2.1    Subd. 3a. Quality improvement. Beginning June 1, 2010, the commissioner shall
2.2contract with a private entity or consortium of entities to establish and implement a quality
2.3improvement program for physician clinics and hospitals that utilizes the underlying
2.4data and results generated from the provider peer grouping system. The program shall
2.5annually provide physician clinics and hospitals with appropriate tools to understand
2.6their performance and to improve their results. The quality improvement program shall
2.7focus on those physician clinics and hospitals that deviate from identified thresholds of
2.8performance. The entity or consortium shall include statewide associations representing
2.9physicians and hospitals.

2.10    Sec. 4. Minnesota Statutes 2008, section 62U.04, subdivision 9, is amended to read:
2.11    Subd. 9. Uses of information. (a) By January 1, 2011 2012:
2.12    (1) the commissioner of management and budget shall use the information and
2.13methods developed under subdivision 3 to strengthen incentives for members of the state
2.14employee group insurance program to use high-quality, low-cost providers;
2.15    (2) all political subdivisions, as defined in section 13.02, subdivision 11, that offer
2.16health benefits to their employees must offer plans that differentiate providers on their
2.17cost and quality performance and create incentives for members to use better-performing
2.18providers;
2.19    (3) all health plan companies shall use the information and methods developed
2.20under subdivision 3 to develop products that encourage consumers to use high-quality,
2.21low-cost providers; and
2.22    (4) health plan companies that issue health plans in the individual market or the
2.23small employer market must offer at least one health plan that uses the information
2.24developed under subdivision 3 to establish financial incentives for consumers to choose
2.25higher-quality, lower-cost providers through enrollee cost-sharing or selective provider
2.26networks.
2.27    (b) By January 1, 2011 2012, the commissioner of health shall report to the
2.28governor and the legislature on recommendations to encourage health plan companies
2.29to promote widespread adoption of products that encourage the use of high-quality,
2.30low-cost providers. The commissioner's recommendations may include tax incentives,
2.31public reporting of health plan performance, regulatory incentives or changes, and other
2.32strategies.

2.33    Sec. 5. REPEALER.
2.34Minnesota Statutes 2009 Supplement, section 256B.032, is repealed."