Bill Text: MN HF404 | 2011-2012 | 87th Legislature | Introduced
Bill Title: School districts required to pool active and retired employees separately for health coverage, and new commitments to subsidize premiums for retired employees prohibited.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2011-02-07 - Introduction and first reading, referred to Education Reform [HF404 Detail]
Download: Minnesota-2011-HF404-Introduced.html
1.2relating to education; requiring school districts to pool active and retired
1.3employees separately for health coverage; prohibiting new commitments to
1.4subsidize premiums for retired employees;amending Minnesota Statutes 2010,
1.5section 471.61, subdivisions 1, 2b.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 471.61, subdivision 1, is amended to read:
1.8 Subdivision 1. Officers, employees. A county, municipal corporation, town, school
1.9district, county extension committee, other political subdivision or other body corporate
1.10and politic of this state, other than the state or any department of the state, through its
1.11governing body, and any two or more subdivisions acting jointly through their governing
1.12bodies, may insure or protect its or their officers and employees, and their dependents, or
1.13any class or classes of officers, employees, or dependents, under a policy or policies or
1.14contract or contracts of group insurance or benefits covering life, health, and accident, in
1.15the case of employees, and medical and surgical benefits and hospitalization insurance
1.16or benefits for both employees and dependents or dependents of an employee whose
1.17death was due to causes arising out of and in the course of employment, or any one or
1.18more of those forms of insurance or protection. A governmental unit, including county
1.19extension committees and those paying their employees, may pay all or any part of
1.20the premiums or charges on the insurance or protection. A payment is deemed to be
1.21additional compensation paid to the officers or employees, but for purposes of determining
1.22contributions or benefits under a public pension or retirement system it is not deemed
1.23to be additional compensation. One or more governmental units may determine that
1.24a person is an officer or employee if the person receives income from the governmental
1.25subdivisions without regard to the manner of election or appointment, including but not
2.1limited to employees of county historical societies that receive funding from the county
2.2and employees of the Minnesota Inter-county Association. The appropriate officer of
2.3the governmental unit, or those disbursing county extension funds, shall deduct from
2.4the salary or wages of each officer and employee who elects to become insured or so
2.5protected, on the officer's or employee's written order, all or part of the officer's or
2.6employee's share of premiums or charges and remit the share or portion to the insurer or
2.7company issuing the policy or contract.
2.8A governmental unit, other than a school district, that pays all or part of the premiums
2.9or charges is authorized to levy and collect a tax, if necessary, in the next annual tax levy
2.10for the purpose of providing the necessary money for the payment of the premiums or
2.11charges, and the sums levied and appropriated are not, in the event the sum exceeds the
2.12maximum sum allowed by the charter of a municipal corporation, considered part of
2.13the cost of government of the governmental unit as defined in any levy or expenditure
2.14limitation; provided at least 50 percent of the cost of benefits on dependents must be
2.15contributed by the employee or be paid by levies within existing charter tax limitations.
2.16The word "dependents" as used in this subdivision means spouse and minor
2.17unmarried children under the age of 18 years actually dependent upon the employee.
2.18Notwithstanding any other law to the contrary, a political subdivision described
2.19in this subdivision may provide health benefits to its employees, dependents, any class
2.20or classes of officers, employers, or dependents, and other eligible persons through
2.21negotiated contributions to self-funded multiemployer health and welfare funds.
2.22Notwithstanding any other law to the contrary, a school district that provides health
2.23coverage or health benefits to retirees or other former employees shall not cover them in
2.24the same pool as active employees. This prohibition applies whether the school district's
2.25health coverage or health benefits are provided through insurance or self-insurance. This
2.26prohibition does not apply to health insurance continuation coverage required under a
2.27federal or state health law.
2.28EFFECTIVE DATE.This section is effective for collective bargaining agreements
2.29and personnel policies that become effective on or after July 1, 2012.
2.30 Sec. 2. Minnesota Statutes 2010, section 471.61, subdivision 2b, is amended to read:
2.31 Subd. 2b. Insurance continuation. A unit of local government must allow a former
2.32employee and the employee's dependents to continue to participate indefinitely in the
2.33employer-sponsored hospital, medical, and dental insurance group that the employee
2.34participated in immediately before retirement, under the following conditions:
3.1(a) The continuation requirement of this subdivision applies only to a former
3.2employee who is receiving a disability benefit or an annuity from a Minnesota public
3.3pension plan other than a volunteer firefighter plan, or who has met age and service
3.4requirements necessary to receive an annuity from such a plan.
3.5(b) Until the former employee reaches age 65, the former employee and dependents
3.6must be pooled in the same group as active employees for purposes of establishing
3.7premiums and coverage for hospital, medical, and dental insurance. However, a former
3.8employee under the age of 65 who is enrolled in Medicare Parts A and B due to the former
3.9employee's disability and for whom Medicare's obligation to pay claims is primary, and
3.10the former employee's dependents, must be pooled in the same group for purposes of this
3.11paragraph as former employees who have reached age 65.
3.12(c) A former employee may receive dependent coverage only if the employee
3.13received dependent coverage immediately before leaving employment. This subdivision
3.14does not require dependent coverage to continue after the death of the former employee.
3.15For purposes of this subdivision, "dependent" has the same meaning for former employees
3.16as it does for active employees in the unit of local government.
3.17(d) Coverage for a former employee and dependents may not discriminate on the
3.18basis of evidence of insurability or preexisting conditions unless identical conditions are
3.19imposed on active employees in the group that the employee left.
3.20(e) The former employee must pay the entire premium for continuation coverage,
3.21except as otherwise provided in a collective bargaining agreement or personnel policy.
3.22The exception in this paragraph does not apply to a collective bargaining agreement
3.23entered into, or personnel policy adopted by, a school district, effective on or after July
3.241, 2012. A unit of local government may discontinue coverage if a former employee
3.25fails to pay the premium within the deadline provided for payment of premiums under
3.26federal law governing insurance continuation.
3.27(f) An employer must notify an employee before termination of employment of the
3.28options available under this subdivision, and of the deadline for electing to continue
3.29to participate.
3.30(g) A former employee must notify the employer of intent to participate within
3.31the deadline provided for notice of insurance continuation under federal law. A former
3.32employee who does not elect to continue participation does not have a right to reenter
3.33the employer's group insurance program.
3.34(h) A former employee who initially selects dependent coverage may later drop
3.35dependent coverage while retaining individual coverage. A former employee may not
3.36drop individual coverage and retain dependent coverage.
4.1(i) This subdivision does not limit rights granted to former employees under other
4.2state or federal law, or under collective bargaining agreements or personnel plans, except
4.3as otherwise provided in paragraph (e) with respect to collective bargaining agreements
4.4and personnel policies or plans involving former employees of school districts.
4.5(j) Unless otherwise provided by a collective bargaining agreement, if retired
4.6employees were not permitted to remain in the active employee group prior to August
4.71, 1992, a public employer may assess active employees through payroll deduction for
4.8all or part of the additional premium costs from the inclusion of retired employees in the
4.9active employee group. This paragraph does not apply to employees covered by section
4.10179A.03, subdivision 7
.
4.11(k) Notwithstanding section179A.20, subdivision 2a , insurance continuation under
4.12this subdivision may be provided for in a collective bargaining agreement or personnel
4.13policy.
4.14EFFECTIVE DATE.This section is effective for collective bargaining agreements
4.15and personnel policies that become effective on or after July 1, 2012.
1.3employees separately for health coverage; prohibiting new commitments to
1.4subsidize premiums for retired employees;amending Minnesota Statutes 2010,
1.5section 471.61, subdivisions 1, 2b.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 471.61, subdivision 1, is amended to read:
1.8 Subdivision 1. Officers, employees. A county, municipal corporation, town, school
1.9district, county extension committee, other political subdivision or other body corporate
1.10and politic of this state, other than the state or any department of the state, through its
1.11governing body, and any two or more subdivisions acting jointly through their governing
1.12bodies, may insure or protect its or their officers and employees, and their dependents, or
1.13any class or classes of officers, employees, or dependents, under a policy or policies or
1.14contract or contracts of group insurance or benefits covering life, health, and accident, in
1.15the case of employees, and medical and surgical benefits and hospitalization insurance
1.16or benefits for both employees and dependents or dependents of an employee whose
1.17death was due to causes arising out of and in the course of employment, or any one or
1.18more of those forms of insurance or protection. A governmental unit, including county
1.19extension committees and those paying their employees, may pay all or any part of
1.20the premiums or charges on the insurance or protection. A payment is deemed to be
1.21additional compensation paid to the officers or employees, but for purposes of determining
1.22contributions or benefits under a public pension or retirement system it is not deemed
1.23to be additional compensation. One or more governmental units may determine that
1.24a person is an officer or employee if the person receives income from the governmental
1.25subdivisions without regard to the manner of election or appointment, including but not
2.1limited to employees of county historical societies that receive funding from the county
2.2and employees of the Minnesota Inter-county Association. The appropriate officer of
2.3the governmental unit, or those disbursing county extension funds, shall deduct from
2.4the salary or wages of each officer and employee who elects to become insured or so
2.5protected, on the officer's or employee's written order, all or part of the officer's or
2.6employee's share of premiums or charges and remit the share or portion to the insurer or
2.7company issuing the policy or contract.
2.8A governmental unit, other than a school district, that pays all or part of the premiums
2.9or charges is authorized to levy and collect a tax, if necessary, in the next annual tax levy
2.10for the purpose of providing the necessary money for the payment of the premiums or
2.11charges, and the sums levied and appropriated are not, in the event the sum exceeds the
2.12maximum sum allowed by the charter of a municipal corporation, considered part of
2.13the cost of government of the governmental unit as defined in any levy or expenditure
2.14limitation; provided at least 50 percent of the cost of benefits on dependents must be
2.15contributed by the employee or be paid by levies within existing charter tax limitations.
2.16The word "dependents" as used in this subdivision means spouse and minor
2.17unmarried children under the age of 18 years actually dependent upon the employee.
2.18Notwithstanding any other law to the contrary, a political subdivision described
2.19in this subdivision may provide health benefits to its employees, dependents, any class
2.20or classes of officers, employers, or dependents, and other eligible persons through
2.21negotiated contributions to self-funded multiemployer health and welfare funds.
2.22Notwithstanding any other law to the contrary, a school district that provides health
2.23coverage or health benefits to retirees or other former employees shall not cover them in
2.24the same pool as active employees. This prohibition applies whether the school district's
2.25health coverage or health benefits are provided through insurance or self-insurance. This
2.26prohibition does not apply to health insurance continuation coverage required under a
2.27federal or state health law.
2.28EFFECTIVE DATE.This section is effective for collective bargaining agreements
2.29and personnel policies that become effective on or after July 1, 2012.
2.30 Sec. 2. Minnesota Statutes 2010, section 471.61, subdivision 2b, is amended to read:
2.31 Subd. 2b. Insurance continuation. A unit of local government must allow a former
2.32employee and the employee's dependents to continue to participate indefinitely in the
2.33employer-sponsored hospital, medical, and dental insurance group that the employee
2.34participated in immediately before retirement, under the following conditions:
3.1(a) The continuation requirement of this subdivision applies only to a former
3.2employee who is receiving a disability benefit or an annuity from a Minnesota public
3.3pension plan other than a volunteer firefighter plan, or who has met age and service
3.4requirements necessary to receive an annuity from such a plan.
3.5(b) Until the former employee reaches age 65, the former employee and dependents
3.6must be pooled in the same group as active employees for purposes of establishing
3.7premiums and coverage for hospital, medical, and dental insurance. However, a former
3.8employee under the age of 65 who is enrolled in Medicare Parts A and B due to the former
3.9employee's disability and for whom Medicare's obligation to pay claims is primary, and
3.10the former employee's dependents, must be pooled in the same group for purposes of this
3.11paragraph as former employees who have reached age 65.
3.12(c) A former employee may receive dependent coverage only if the employee
3.13received dependent coverage immediately before leaving employment. This subdivision
3.14does not require dependent coverage to continue after the death of the former employee.
3.15For purposes of this subdivision, "dependent" has the same meaning for former employees
3.16as it does for active employees in the unit of local government.
3.17(d) Coverage for a former employee and dependents may not discriminate on the
3.18basis of evidence of insurability or preexisting conditions unless identical conditions are
3.19imposed on active employees in the group that the employee left.
3.20(e) The former employee must pay the entire premium for continuation coverage,
3.21except as otherwise provided in a collective bargaining agreement or personnel policy.
3.22The exception in this paragraph does not apply to a collective bargaining agreement
3.23entered into, or personnel policy adopted by, a school district, effective on or after July
3.241, 2012. A unit of local government may discontinue coverage if a former employee
3.25fails to pay the premium within the deadline provided for payment of premiums under
3.26federal law governing insurance continuation.
3.27(f) An employer must notify an employee before termination of employment of the
3.28options available under this subdivision, and of the deadline for electing to continue
3.29to participate.
3.30(g) A former employee must notify the employer of intent to participate within
3.31the deadline provided for notice of insurance continuation under federal law. A former
3.32employee who does not elect to continue participation does not have a right to reenter
3.33the employer's group insurance program.
3.34(h) A former employee who initially selects dependent coverage may later drop
3.35dependent coverage while retaining individual coverage. A former employee may not
3.36drop individual coverage and retain dependent coverage.
4.1(i) This subdivision does not limit rights granted to former employees under other
4.2state or federal law, or under collective bargaining agreements or personnel plans, except
4.3as otherwise provided in paragraph (e) with respect to collective bargaining agreements
4.4and personnel policies or plans involving former employees of school districts.
4.5(j) Unless otherwise provided by a collective bargaining agreement, if retired
4.6employees were not permitted to remain in the active employee group prior to August
4.71, 1992, a public employer may assess active employees through payroll deduction for
4.8all or part of the additional premium costs from the inclusion of retired employees in the
4.9active employee group. This paragraph does not apply to employees covered by section
4.11(k) Notwithstanding section
4.12this subdivision may be provided for in a collective bargaining agreement or personnel
4.13policy.
4.14EFFECTIVE DATE.This section is effective for collective bargaining agreements
4.15and personnel policies that become effective on or after July 1, 2012.
