Bill Text: MN SF247 | 2011-2012 | 87th Legislature | Chaptered

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Bill Title: Public employees insurance program (PEIP) local government employees participation or withdrawal approval requirements; service cooperative health insurance refund regulation

Spectrum: Slight Partisan Bill (Republican 5-2)

Status: (Vetoed) 2012-04-23 - Veto message laid on table [SF247 Detail]

Download: Minnesota-2011-SF247-Chaptered.html

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CHAPTER 213--S.F.No. 247

An act

relating to insurance; regulating service cooperative refunds; requiring
local government employees to approve participation in or withdrawal from
the public employees insurance program;amending Minnesota Statutes 2010,
sections 43A.316, subdivision 5; 123A.21, by adding a subdivision; 471.611,
subdivision 2.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

    Section 1. Minnesota Statutes 2010, section 43A.316, subdivision 5, is amended to
read:
    Subd. 5. Public employee participation. (a) Participation in the program is subject
to the conditions in this subdivision.
(b) Each exclusive representative for an eligible employer determines whether the
employees it represents will participate in the program. The exclusive representative shall
give the employer notice of intent to participate at least 30 days before the expiration date
of the collective bargaining agreement preceding the collective bargaining agreement that
covers the date of entry into the program. The exclusive representative and the eligible
employer shall give notice to the commissioner of the determination to participate in the
program at least 30 days before entry into the program. Entry into the program is governed
by a schedule established by the commissioner. If an exclusive representative of eligible
employees gives notice to their eligible employer that the employees it represents desire to
participate in the program, that determination shall not become final for any insurance
eligible employees unless (1) the eligible employer and the exclusive representative of
the employees of an appropriate bargaining unit certified under section 179A.12 agree to
the change, and (2) it is approved by a majority of all insurance eligible employees of the
appropriate bargaining unit. If enrolling in the program is approved then either all or none
of the insurance eligible employees of the appropriate bargaining unit must participate in
the program, except as provided by section 471.611, subdivision 2. Entry into the program
is governed by a schedule established by the commissioner.
(c) Employees not represented by exclusive representatives, including retirees who
continue insurance coverage through the eligible employer, may become members of the
program upon a determination of an eligible employer to include these employees in the
program. Either all or none of the employer's unrepresented employees must participate.
The eligible employer shall give at least 30 days' notice to the commissioner before
entering the program. Entry into the program is governed by a schedule established by
the commissioner.
(d) Participation in the program is for a two-year term. Participation is automatically
renewed for an additional two-year term unless the exclusive representative, or the
employer for unrepresented employees, gives the commissioner notice of withdrawal
at least 30 days before expiration of the participation period. A group that withdraws
must wait two years before rejoining. An exclusive representative, or employer for
unrepresented employees, may also withdraw if premiums increase 50 percent or
more from one insurance year to the next. Participation is automatically renewed for
an additional one-year term unless the exclusive representative, or the employer for
unrepresented employees, gives the commissioner notice of withdrawal at least 30 days
before expiration of the participation period. The program must permit participating
entities to solicit bids and other information from competing sources of health coverage
without penalty. The program must provide each enrolled entity with the entity's monthly
claims data upon request. The program may prohibit the entity from participating in
program coverage for a period of up to one year, if the entity leaves the program and
obtains other health coverage.
(e) The exclusive representative shall give the employer notice of intent to withdraw
to the commissioner at least 30 days before the expiration date of a collective bargaining
agreement that includes the date on which the term of participation expires.
(f) Each participating eligible employer shall notify the commissioner of names of
individuals who will be participating within two weeks of the commissioner receiving
notice of the parties' intent to participate. The employer shall also submit other information
as required by the commissioner for administration of the program.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 2. Minnesota Statutes 2010, section 123A.21, is amended by adding a subdivision
to read:
    Subd. 13. Insurance premium refunds. A service cooperative may not refund any
portion of a health insurance premium paid by a member entity without first providing
written notice of the refund to any applicable exclusive representative of employees of
the member entity receiving the refund.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 3. Minnesota Statutes 2010, section 471.611, subdivision 2, is amended to read:
    Subd. 2. Coordination. A unit of local government that funds all or part of the
cost of health care benefits for a retired employee, or that allows a retired employee to
continue health insurance coverage through the unit of local government, must provide
for coverage to be coordinated with applicable benefits provided through the federally
sponsored Medicare program.
EFFECTIVE DATE.This section is effective the day following final enactment.