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

NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Engrossed.html

1.1A bill for an act
1.2relating to insurance; requiring local government employees to approve
1.3participation in or withdrawal from the public employees insurance program;
1.4amending Minnesota Statutes 2010, sections 43A.316, subdivision 5; 471.611,
1.5subdivision 2.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7    Section 1. Minnesota Statutes 2010, section 43A.316, subdivision 5, is amended to
1.8read:
1.9    Subd. 5. Public employee participation. (a) Participation in the program is subject
1.10to the conditions in this subdivision.
1.11(b) Each exclusive representative for an eligible employer determines whether the
1.12employees it represents will participate in the program. The exclusive representative shall
1.13give the employer notice of intent to participate at least 30 days before the expiration date
1.14of the collective bargaining agreement preceding the collective bargaining agreement that
1.15covers the date of entry into the program. The exclusive representative and the eligible
1.16employer shall give notice to the commissioner of the determination to participate in the
1.17program at least 30 days before entry into the program. Entry into the program is governed
1.18by a schedule established by the commissioner. If an exclusive representative of eligible
1.19employees gives notice to their eligible employer that the employees it represents desire to
1.20participate in the program, that determination shall not become final for any insurance
1.21eligible employees unless (1) the eligible employer and the exclusive representative of
1.22the employees of an appropriate bargaining unit certified under section 179A.12 agree to
1.23the change, and (2) it is approved by a majority of all insurance eligible employees of the
1.24appropriate bargaining unit. If enrolling in the program is approved then either all or none
1.25of the insurance eligible employees of the appropriate bargaining unit must participate in
2.1the program, except as provided by section 471.611, subdivision 2. Entry into the program
2.2is governed by a schedule established by the commissioner.
2.3(c) Employees not represented by exclusive representatives, including retirees who
2.4continue insurance coverage through the eligible employer, may become members of the
2.5program upon a determination of an eligible employer to include these employees in the
2.6program. Either all or none of the employer's unrepresented employees must participate.
2.7The eligible employer shall give at least 30 days' notice to the commissioner before
2.8entering the program. Entry into the program is governed by a schedule established by
2.9the commissioner.
2.10(d) Participation in the program is for a two-year term. Participation is automatically
2.11renewed for an additional two-year term unless the exclusive representative, or the
2.12employer for unrepresented employees, gives the commissioner notice of withdrawal
2.13at least 30 days before expiration of the participation period. A group that withdraws
2.14must wait two years before rejoining. An exclusive representative, or employer for
2.15unrepresented employees, may also withdraw if premiums increase 50 percent or
2.16more from one insurance year to the next. Participation is automatically renewed for
2.17an additional one-year term unless the exclusive representative, or the employer for
2.18unrepresented employees, gives the commissioner notice of withdrawal at least 30 days
2.19before expiration of the participation period. The program must permit participating
2.20entities to solicit bids and other information from competing sources of health coverage
2.21without penalty. The program must provide each enrolled entity with the entity's monthly
2.22claims data upon request. The program may prohibit the entity from participating in
2.23program coverage for a period of up to one year, if the entity leaves the program and
2.24obtains other health coverage.
2.25(e) The exclusive representative shall give the employer notice of intent to withdraw
2.26to the commissioner at least 30 days before the expiration date of a collective bargaining
2.27agreement that includes the date on which the term of participation expires.
2.28(f) Each participating eligible employer shall notify the commissioner of names of
2.29individuals who will be participating within two weeks of the commissioner receiving
2.30notice of the parties' intent to participate. The employer shall also submit other information
2.31as required by the commissioner for administration of the program.
2.32EFFECTIVE DATE.This section is effective the day following final enactment.

2.33    Sec. 2. Minnesota Statutes 2010, section 471.611, subdivision 2, is amended to read:
2.34    Subd. 2. Coordination. A unit of local government that funds all or part of the
2.35cost of health care benefits for a retired employee, or that allows a retired employee to
3.1continue health insurance coverage through the unit of local government, must provide
3.2for coverage to be coordinated with applicable benefits provided through the federally
3.3sponsored Medicare program.
3.4EFFECTIVE DATE.This section is effective the day following final enactment.
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