Bill Text: MN HF573 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Public employees insurance program regulated, and school employer participation required.
Sponsorship: Moderate Partisan Bill (Democrat 30-5)
Status: (Introduced - Dead) 2013-04-02 - Committee report, to pass and re-refer to Ways and Means [HF573 Detail]
Download: Minnesota-2013-HF573-Engrossed.html
1.2relating to insurance; regulating the public employees insurance program;
1.3requiring participation by certain school employers;amending Minnesota
1.4Statutes 2012, section 43A.316, subdivisions 2, 4, 5, by adding subdivisions.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 43A.316, subdivision 2, is amended to read:
1.7 Subd. 2. Definitions. For the purpose of this section, the terms defined in this
1.8subdivision have the meaning given them.
1.9(a) Commissioner. "Commissioner" means the commissioner of management and
1.10budget.
1.11(b) Employee. "Employee" means:
1.12(1) a person who is a public employee within the definition of section179A.03,
1.13subdivision 14 , who is insurance eligible and is employed by an eligible employer;
1.14(2) an elected public official of an eligible employer who is insurance eligible;
1.15(3) a person employed by a labor organization or employee association certified as
1.16an exclusive representative of employees of an eligible employer or by another public
1.17employer approved by the commissioner, so long as the plan meets the requirements of a
1.18governmental plan under United States Code, title 29, section 1002(32); or
1.19(4) a person employed by a county or municipal hospital.
1.20(c) Eligible employer. "Eligible employer" means:
1.21(1) a public employer within the definition of section179A.03, subdivision 15 , that
1.22is a town, county, city, school district as defined in section120A.05 , service cooperative
1.23as defined in section123A.21 , intermediate district as defined in section
136D.01 ,
1.24Cooperative Center for Vocational Education as defined in section123A.22 , regional
2.1management information center as defined in section123A.23 , or an education unit
2.2organized under the joint powers action, section471.59 ; or
2.3(2) an exclusive representative of employees, as defined in paragraph (b), and its
2.4state affiliate;
2.5(3) a county or municipal hospital; or
2.6(4) another public employer approved by the commissioner.
2.7(d) Exclusive representative. "Exclusive representative" means an exclusive
2.8representative as defined in section179A.03, subdivision 8 .
2.9(e) Labor-Management Committee. "Labor-Management Committee" means the
2.10committee established by subdivision 4.
2.11(f) Program. "Program" means the statewide public employees insurance program
2.12created by subdivision 3.
2.13(g) School employee. "School employee" means an employee of a school employer.
2.14(h) School employer. "School employer" means a district as defined in section
2.15120A.05, a service cooperative as defined in section 123A.21, an intermediate district as
2.16defined in section 136D.01, a cooperative center for vocational education as defined in
2.17section 123A.22, a regional management information center as defined in section 123A.23,
2.18or an education unit organized under a joint powers agreement under section 471.59.
2.19 Sec. 2. Minnesota Statutes 2012, section 43A.316, subdivision 4, is amended to read:
2.20 Subd. 4. Labor-Management Committee.The Labor-Management Committee
2.21consists of ten members appointed by the commissioner. The Labor-Management
2.22Committee must comprise five members who represent employees, including at least
2.23one retired employee, and five members who represent eligible employers. Committee
2.24members are eligible for expense reimbursement in the same manner and amount as
2.25authorized by the commissioner's plan adopted under section
43A.18, subdivision 2. The
2.26commissioner shall consult with the labor-management committee in major decisions that
2.27affect the program. The committee shall study issues relating to the insurance program
2.28including, but not limited to, flexible benefits, utilization review, quality assessment, and
2.29cost efficiency. The committee continues to exist while the program remains in operation.
2.30The Labor-Management Committee consists of 14 members appointed to represent
2.31eligible school employers and eligible school employees in equal numbers. The seven
2.32members who represent eligible school employers shall consist of seven appointed by the
2.33Minnesota School Boards Association. The seven members who represent eligible school
2.34employees shall consist of four appointed by Education Minnesota and one each appointed
2.35by the Service Employees International Union; the American Federation of State, County,
3.1and Municipal Employees; and the Minnesota School Employees Association. Committee
3.2members are eligible for expense reimbursement in the same manner and amount as
3.3authorized by the commissioner's plan adopted under section43A.18, subdivision 2 . The
3.4commissioner shall consult with the labor-management committee in major decisions that
3.5affect the program. The commissioner and the committee must mutually agree to all
3.6plan design changes. The committee shall study issues relating to the insurance program
3.7including, but not limited to, flexible benefits, utilization review, quality assessment, and
3.8cost efficiency. The committee continues to exist while the program remains in operation.
3.9 Sec. 3. Minnesota Statutes 2012, section 43A.316, subdivision 5, is amended to read:
3.10 Subd. 5. Public employee participation. (a) Participation in the program is subject
3.11to the conditions in this subdivision.
3.12(b) Each exclusive representative for an eligible employer determines whether the
3.13employees it represents will participate in the program. The exclusive representative shall
3.14give the employer notice of intent to participate at least 30 days before the expiration date
3.15of the collective bargaining agreement preceding the collective bargaining agreement that
3.16covers the date of entry into the program. The exclusive representative and the eligible
3.17employer shall give notice to the commissioner of the determination to participate in the
3.18program at least 30 days before entry into the program. Entry into the program is governed
3.19by a schedule established by the commissioner.
3.20(c) Employees not represented by exclusive representatives may become members
3.21of the program upon a determination of an eligible employer to include these employees
3.22in the program. Either all or none of the employer's unrepresented employees must
3.23participate. The eligible employer shall give at least 30 days' notice to the commissioner
3.24before entering the program. Entry into the program is governed by a schedule established
3.25by the commissioner.
3.26(d) Participation in the program is for a two-year term. Participation is automatically
3.27renewed for an additional two-year term unless the exclusive representative, or the
3.28employer for unrepresented employees, gives the commissioner notice of withdrawal
3.29at least 30 days before expiration of the participation period. A group that withdraws
3.30must wait two years before rejoining. An exclusive representative, or employer for
3.31unrepresented employees, may also withdraw if premiums increase 50 percent or more
3.32from one insurance year to the next.
3.33(e) The exclusive representative shall give the employer notice of intent to withdraw
3.34to the commissioner at least 30 days before the expiration date of a collective bargaining
3.35agreement that includes the date on which the term of participation expires.
4.1(f) Each participating eligible employer shall notify the commissioner of names of
4.2individuals who will be participating within two weeks of the commissioner receiving
4.3notice of the parties' intent to participate. The employer shall also submit other information
4.4as required by the commissioner for administration of the program.
4.5(g) A school employer that makes available health insurance coverage for
4.6employees, either in a self-insured or fully insured arrangement, including those
4.7purchasing coverage through a service cooperative as defined by section 123A.21, must
4.8purchase health insurance coverage through the program, beginning January 1, 2014,
4.9as contracts or agreements with providers that were in place upon enactment expire.
4.10School employers and school employees must not choose the PEIP HSA high deductible
4.11plan. Employees of school employers obligated by a health insurance contract expiring
4.12December 31, 2013, must begin participation in the program on January 1, 2014. In
4.13the event an insurance contract expires after enactment and before December 31, 2013,
4.14subsequent contracts will be limited to one year in duration. School employers may opt
4.15out as described in clauses (1) to (5).
4.16(1) The school board of a school employer, not including a service cooperative under
4.17section 123A.21, with 1,000 or more insured lives on the day of enactment and each
4.18exclusive representative of employees of that school employer shall jointly determine
4.19whether the employees represented by the exclusive representative will opt out of the
4.20program. The school employer must give notice to the commissioner of the school
4.21employer's decision to opt out, at least 30 days prior to the required entrance into the
4.22program. The notice must include all the names of the exclusive representatives opting
4.23out as well as the names of nonrepresented employees. Clauses (2) to (7) apply only to
4.24employees of the school employers described in this clause.
4.25(2) Employees not represented by an exclusive representative may enter the public
4.26employee insurance program in the manner described in paragraph (c).
4.27(3) Exclusive representatives of school employers and nonrepresented employees
4.28of school employers who do not enter the program on the date of initial eligibility for
4.29participation shall be ineligible to participate until a period of four years has elapsed since
4.30initial eligibility and may, at the discretion of the commissioner, be pooled and rated
4.31separately from the other employees in the program for the first four years after entering
4.32the program. This clause does not prohibit an employee from a district or exclusive
4.33representative that has not declined participation from later becoming a member of the
4.34program.
4.35(4) The decision of the school board of a school employer and an exclusive
4.36representative of employees or, in the case of employees not represented by an exclusive
5.1representative, the decision of the school board of a school employer, to not opt out of
5.2entry into the program is irrevocable.
5.3(5) School employers may opt out only if the total insured lives remaining after
5.4applying clauses (2) to (4) is more than 1,000 insured lives, or if the school employer has
5.5received a bid from a source of coverage that provides a bid that is less expensive for
5.6equivalent or similar benefits and network as the coverage available from the program.
5.7(6) School employers with individual self-insured plans whose employees will be
5.8participating in the program that have unused reserve funds after all obligations have
5.9been met, may negotiate with the exclusive representative regarding the reserve amount
5.10attributable to the proportionate number of insured lives covered by that exclusive
5.11representative. If the school employer and the exclusive representative are unable to
5.12come to an agreement, the remaining funds will be used to pay the full premium to the
5.13program for all employees represented by the exclusive representative of that school
5.14employer participating in the program until the proportionate reserve funds are depleted.
5.15These funds shall be used for a proportional premium payment at the time it is necessary
5.16to deplete the balance.
5.17(7) School employers leaving a section 123A.21 plan with a service cooperative
5.18will receive a prorated share of the service cooperative reserves and distribute them as
5.19required in clause (6).
5.20 Sec. 4. Minnesota Statutes 2012, section 43A.316, is amended by adding a subdivision
5.21to read:
5.22 Subd. 11. Nonidentifiable aggregate claims data from past coverage. Upon
5.23request by the commissioner, entities that are providing or have provided coverage to
5.24eligible school employees, shall provide to the commissioner at no charge nonidentifiable
5.25aggregate claims data for that coverage. The information must include data relating to
5.26school employees' group benefit sets, demographics, claims experience, and any other data
5.27or information reasonably necessary to accurately and appropriately underwrite the risk
5.28of the school employees, notwithstanding section 13.203.
5.29 Sec. 5. Minnesota Statutes 2012, section 43A.316, is amended by adding a subdivision
5.30to read:
5.31 Subd. 12. School employee start-up funding; administration of ongoing
5.32revenues and expenses. The commissioner may impose a reserve surcharge in the first
5.33three years of school employee enrollment at the commissioner's discretion.
6.1 Sec. 6. Minnesota Statutes 2012, section 43A.316, is amended by adding a subdivision
6.2to read:
6.3 Subd. 13. Startup funding; administration of ongoing revenues and expenses.
6.4(a) The commissioner of management and budget shall use funds available in the
6.5insurance trust fund under subdivision 9 in the form of temporary funding to pay for
6.6the administrative startup costs and reserves necessary under this act. In addition to the
6.7amounts of temporary funding, the commissioner shall determine the amount of interest
6.8lost to the insurance trust fund as a result of the temporary funding.
6.9(b) The commissioner of management and budget shall impose an enrollment fee
6.10upon the premium charged for the first three months of coverage under the school employee
6.11insurance program created in this act sufficient to repay to the insurance trust fund the
6.12loans provided to cover the startup costs incurred by the commissioner under paragraph
6.13(a), plus foregone interest to the insurance trust fund, as determined under paragraph (a).
6.14The commissioner shall deposit the enrollment fees in the insurance trust fund.
6.15(c) All costs incurred and revenue received by the commissioner of management and
6.16budget under this act in addition to those dealt with in paragraphs (a) and (b), shall on an
6.17ongoing basis be deposited into and paid out of the insurance trust fund.
1.3requiring participation by certain school employers;amending Minnesota
1.4Statutes 2012, section 43A.316, subdivisions 2, 4, 5, by adding subdivisions.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 43A.316, subdivision 2, is amended to read:
1.7 Subd. 2. Definitions. For the purpose of this section, the terms defined in this
1.8subdivision have the meaning given them.
1.9(a) Commissioner. "Commissioner" means the commissioner of management and
1.10budget.
1.11(b) Employee. "Employee" means:
1.12(1) a person who is a public employee within the definition of section
1.13subdivision 14
1.14(2) an elected public official of an eligible employer who is insurance eligible;
1.15(3) a person employed by a labor organization or employee association certified as
1.16an exclusive representative of employees of an eligible employer or by another public
1.17employer approved by the commissioner, so long as the plan meets the requirements of a
1.18governmental plan under United States Code, title 29, section 1002(32); or
1.19(4) a person employed by a county or municipal hospital.
1.20(c) Eligible employer. "Eligible employer" means:
1.21(1) a public employer within the definition of section
1.22is a town, county, city, school district as defined in section
1.23as defined in section
1.24Cooperative Center for Vocational Education as defined in section
2.1management information center as defined in section
2.2organized under the joint powers action, section
2.3(2) an exclusive representative of employees, as defined in paragraph (b), and its
2.4state affiliate;
2.5(3) a county or municipal hospital; or
2.6(4) another public employer approved by the commissioner.
2.7(d) Exclusive representative. "Exclusive representative" means an exclusive
2.8representative as defined in section
2.9(e) Labor-Management Committee. "Labor-Management Committee" means the
2.10committee established by subdivision 4.
2.11(f) Program. "Program" means the statewide public employees insurance program
2.12created by subdivision 3.
2.13(g) School employee. "School employee" means an employee of a school employer.
2.14(h) School employer. "School employer" means a district as defined in section
2.15120A.05, a service cooperative as defined in section 123A.21, an intermediate district as
2.16defined in section 136D.01, a cooperative center for vocational education as defined in
2.17section 123A.22, a regional management information center as defined in section 123A.23,
2.18or an education unit organized under a joint powers agreement under section 471.59.
2.19 Sec. 2. Minnesota Statutes 2012, section 43A.316, subdivision 4, is amended to read:
2.20 Subd. 4. Labor-Management Committee.
2.21
2.22
2.23
2.24
2.25
2.26
2.27
2.28
2.29
2.30The Labor-Management Committee consists of 14 members appointed to represent
2.31eligible school employers and eligible school employees in equal numbers. The seven
2.32members who represent eligible school employers shall consist of seven appointed by the
2.33Minnesota School Boards Association. The seven members who represent eligible school
2.34employees shall consist of four appointed by Education Minnesota and one each appointed
2.35by the Service Employees International Union; the American Federation of State, County,
3.1and Municipal Employees; and the Minnesota School Employees Association. Committee
3.2members are eligible for expense reimbursement in the same manner and amount as
3.3authorized by the commissioner's plan adopted under section
3.4commissioner shall consult with the labor-management committee in major decisions that
3.5affect the program. The commissioner and the committee must mutually agree to all
3.6plan design changes. The committee shall study issues relating to the insurance program
3.7including, but not limited to, flexible benefits, utilization review, quality assessment, and
3.8cost efficiency. The committee continues to exist while the program remains in operation.
3.9 Sec. 3. Minnesota Statutes 2012, section 43A.316, subdivision 5, is amended to read:
3.10 Subd. 5. Public employee participation. (a) Participation in the program is subject
3.11to the conditions in this subdivision.
3.12(b) Each exclusive representative for an eligible employer determines whether the
3.13employees it represents will participate in the program. The exclusive representative shall
3.14give the employer notice of intent to participate at least 30 days before the expiration date
3.15of the collective bargaining agreement preceding the collective bargaining agreement that
3.16covers the date of entry into the program. The exclusive representative and the eligible
3.17employer shall give notice to the commissioner of the determination to participate in the
3.18program at least 30 days before entry into the program. Entry into the program is governed
3.19by a schedule established by the commissioner.
3.20(c) Employees not represented by exclusive representatives may become members
3.21of the program upon a determination of an eligible employer to include these employees
3.22in the program. Either all or none of the employer's unrepresented employees must
3.23participate. The eligible employer shall give at least 30 days' notice to the commissioner
3.24before entering the program. Entry into the program is governed by a schedule established
3.25by the commissioner.
3.26(d) Participation in the program is for a two-year term. Participation is automatically
3.27renewed for an additional two-year term unless the exclusive representative, or the
3.28employer for unrepresented employees, gives the commissioner notice of withdrawal
3.29at least 30 days before expiration of the participation period. A group that withdraws
3.30must wait two years before rejoining. An exclusive representative, or employer for
3.31unrepresented employees, may also withdraw if premiums increase 50 percent or more
3.32from one insurance year to the next.
3.33(e) The exclusive representative shall give the employer notice of intent to withdraw
3.34to the commissioner at least 30 days before the expiration date of a collective bargaining
3.35agreement that includes the date on which the term of participation expires.
4.1(f) Each participating eligible employer shall notify the commissioner of names of
4.2individuals who will be participating within two weeks of the commissioner receiving
4.3notice of the parties' intent to participate. The employer shall also submit other information
4.4as required by the commissioner for administration of the program.
4.5(g) A school employer that makes available health insurance coverage for
4.6employees, either in a self-insured or fully insured arrangement, including those
4.7purchasing coverage through a service cooperative as defined by section 123A.21, must
4.8purchase health insurance coverage through the program, beginning January 1, 2014,
4.9as contracts or agreements with providers that were in place upon enactment expire.
4.10School employers and school employees must not choose the PEIP HSA high deductible
4.11plan. Employees of school employers obligated by a health insurance contract expiring
4.12December 31, 2013, must begin participation in the program on January 1, 2014. In
4.13the event an insurance contract expires after enactment and before December 31, 2013,
4.14subsequent contracts will be limited to one year in duration. School employers may opt
4.15out as described in clauses (1) to (5).
4.16(1) The school board of a school employer, not including a service cooperative under
4.17section 123A.21, with 1,000 or more insured lives on the day of enactment and each
4.18exclusive representative of employees of that school employer shall jointly determine
4.19whether the employees represented by the exclusive representative will opt out of the
4.20program. The school employer must give notice to the commissioner of the school
4.21employer's decision to opt out, at least 30 days prior to the required entrance into the
4.22program. The notice must include all the names of the exclusive representatives opting
4.23out as well as the names of nonrepresented employees. Clauses (2) to (7) apply only to
4.24employees of the school employers described in this clause.
4.25(2) Employees not represented by an exclusive representative may enter the public
4.26employee insurance program in the manner described in paragraph (c).
4.27(3) Exclusive representatives of school employers and nonrepresented employees
4.28of school employers who do not enter the program on the date of initial eligibility for
4.29participation shall be ineligible to participate until a period of four years has elapsed since
4.30initial eligibility and may, at the discretion of the commissioner, be pooled and rated
4.31separately from the other employees in the program for the first four years after entering
4.32the program. This clause does not prohibit an employee from a district or exclusive
4.33representative that has not declined participation from later becoming a member of the
4.34program.
4.35(4) The decision of the school board of a school employer and an exclusive
4.36representative of employees or, in the case of employees not represented by an exclusive
5.1representative, the decision of the school board of a school employer, to not opt out of
5.2entry into the program is irrevocable.
5.3(5) School employers may opt out only if the total insured lives remaining after
5.4applying clauses (2) to (4) is more than 1,000 insured lives, or if the school employer has
5.5received a bid from a source of coverage that provides a bid that is less expensive for
5.6equivalent or similar benefits and network as the coverage available from the program.
5.7(6) School employers with individual self-insured plans whose employees will be
5.8participating in the program that have unused reserve funds after all obligations have
5.9been met, may negotiate with the exclusive representative regarding the reserve amount
5.10attributable to the proportionate number of insured lives covered by that exclusive
5.11representative. If the school employer and the exclusive representative are unable to
5.12come to an agreement, the remaining funds will be used to pay the full premium to the
5.13program for all employees represented by the exclusive representative of that school
5.14employer participating in the program until the proportionate reserve funds are depleted.
5.15These funds shall be used for a proportional premium payment at the time it is necessary
5.16to deplete the balance.
5.17(7) School employers leaving a section 123A.21 plan with a service cooperative
5.18will receive a prorated share of the service cooperative reserves and distribute them as
5.19required in clause (6).
5.20 Sec. 4. Minnesota Statutes 2012, section 43A.316, is amended by adding a subdivision
5.21to read:
5.22 Subd. 11. Nonidentifiable aggregate claims data from past coverage. Upon
5.23request by the commissioner, entities that are providing or have provided coverage to
5.24eligible school employees, shall provide to the commissioner at no charge nonidentifiable
5.25aggregate claims data for that coverage. The information must include data relating to
5.26school employees' group benefit sets, demographics, claims experience, and any other data
5.27or information reasonably necessary to accurately and appropriately underwrite the risk
5.28of the school employees, notwithstanding section 13.203.
5.29 Sec. 5. Minnesota Statutes 2012, section 43A.316, is amended by adding a subdivision
5.30to read:
5.31 Subd. 12. School employee start-up funding; administration of ongoing
5.32revenues and expenses. The commissioner may impose a reserve surcharge in the first
5.33three years of school employee enrollment at the commissioner's discretion.
6.1 Sec. 6. Minnesota Statutes 2012, section 43A.316, is amended by adding a subdivision
6.2to read:
6.3 Subd. 13. Startup funding; administration of ongoing revenues and expenses.
6.4(a) The commissioner of management and budget shall use funds available in the
6.5insurance trust fund under subdivision 9 in the form of temporary funding to pay for
6.6the administrative startup costs and reserves necessary under this act. In addition to the
6.7amounts of temporary funding, the commissioner shall determine the amount of interest
6.8lost to the insurance trust fund as a result of the temporary funding.
6.9(b) The commissioner of management and budget shall impose an enrollment fee
6.10upon the premium charged for the first three months of coverage under the school employee
6.11insurance program created in this act sufficient to repay to the insurance trust fund the
6.12loans provided to cover the startup costs incurred by the commissioner under paragraph
6.13(a), plus foregone interest to the insurance trust fund, as determined under paragraph (a).
6.14The commissioner shall deposit the enrollment fees in the insurance trust fund.
6.15(c) All costs incurred and revenue received by the commissioner of management and
6.16budget under this act in addition to those dealt with in paragraphs (a) and (b), shall on an
6.17ongoing basis be deposited into and paid out of the insurance trust fund.
