Bill Text: MN SF497 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Public employees insurance program (PEIP) school districts employee health insurance coverage purchase requirement
Sponsorship: Moderate Partisan Bill (Democrat 4-1)
Status: (Introduced - Dead) 2011-02-28 - Referred to Commerce and Consumer Protection [SF497 Detail]
Download: Minnesota-2011-SF497-Introduced.html
1.2relating to insurance; requiring school districts to obtain employee health
1.3coverage through the public employees insurance program; imposing a gross
1.4premiums tax on the program; imposing an enrollment fee;amending Minnesota
1.5Statutes 2010, sections 43A.316, subdivisions 9, 10, by adding subdivisions;
1.662E.02, subdivision 23; 62E.10, subdivision 1; 62E.11, subdivision 5; 297I.05,
1.7by adding a subdivision; 297I.15, subdivision 3.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2010, section 43A.316, is amended by adding a
1.10subdivision to read:
1.11 Subd. 3a. Health improvement programs. The commissioner, with the approval
1.12of the school employee insurance committee, is authorized to plan, develop, purchase,
1.13administer, and evaluate disease management and other programs, strategies, and
1.14incentives to improve the health and health outcomes of members.
1.15 Sec. 2. Minnesota Statutes 2010, section 43A.316, subdivision 9, is amended to read:
1.16 Subd. 9. Insurance trust fund. (a) The insurance trust fund in the state treasury
1.17consists of deposits of the premiums received from employers participating in the
1.18program and transfers before July 1, 1994, from the excess contributions holding account
1.19established by section353.65, subdivision 7 . All money in the fund is appropriated to
1.20the commissioner to pay insurance premiums, approved claims, refunds, administrative
1.21costs, and other relatedservice costs, including costs incurred under chapters 62E and
1.22297I in connection with the school employee insurance program. Premiums paid by
1.23employers to the fund are exempt from the taxes imposed by chapter 297I, except as
1.24described in paragraph (b). The commissioner shall reserve an amount of money to cover
2.1the estimated costs of claims incurred but unpaid. The State Board of Investment shall
2.2invest the money according to section11A.24 . Investment income and losses attributable
2.3to the fund must be credited to the fund.
2.4(b) Notwithstanding paragraph (a), premium revenues collected from the school
2.5employee insurance program, described in subdivisions 12 and 13, are not exempt from
2.6the taxes imposed under section 297I.05, subdivision 15.
2.7 Sec. 3. Minnesota Statutes 2010, section 43A.316, subdivision 10, is amended to read:
2.8 Subd. 10. Exemption. (a) The public employee insurance program and, where
2.9applicable, the employers participating in it are exempt from chapters 60A, 62A, 62C,
2.1062D, 62E, and 62H, section471.617, subdivisions 2 and 3 , and the bidding requirements
2.11of section471.6161 .
2.12(b) Notwithstanding paragraph (a), the school employee insurance program,
2.13described in subdivisions 12 and 13, is a contributing member of the Minnesota
2.14Comprehensive Health Association and must pay assessments made by the association on
2.15the premium revenue attributed to the school employee insurance program, prorated as
2.16provided in section 62E.11, subdivision 5, paragraph (b).
2.17 Sec. 4. Minnesota Statutes 2010, section 43A.316, is amended by adding a subdivision
2.18to read:
2.19 Subd. 11. Definitions. (a) For purposes of subdivisions 11 to 16, the terms defined
2.20in this subdivision have the meanings given.
2.21(b) "Eligible employee" means an employee of a school employer, a dependent of
2.22such an employee, a retiree, or other person, who is eligible for health insurance coverage
2.23under the school employer's plan.
2.24(c) "School Employee Insurance Committee" means the committee created in
2.25subdivision 14.
2.26(d) "School employer" means a school district as defined in section 120A.05, service
2.27cooperative as defined in section 123A.21, intermediate district as defined in section
2.28136D.01, Cooperative Center for Vocational Education as defined in section 123A.22,
2.29regional management information center as defined in section 123A.23, or an education
2.30unit organized under a joint powers agreement under section 471.59.
2.31 Sec. 5. Minnesota Statutes 2010, section 43A.316, is amended by adding a subdivision
2.32to read:
3.1 Subd. 12. School employee insurance program. The commissioner shall develop
3.2and administer within the public employees insurance program a separately rated and
3.3administered program for eligible employees of school employers, to be called the
3.4school employee insurance program. The initial offerings must be the PEIP Advantage,
3.5Advantage Value, and Advantage HSA plans offered by the public employee insurance
3.6program. Health coverage offered through the school employee insurance program must
3.7be made available beginning January 1, 2013.
3.8 Sec. 6. Minnesota Statutes 2010, section 43A.316, is amended by adding a subdivision
3.9to read:
3.10 Subd. 13. Enrollment; school employee insurance program. (a) A school
3.11employer that provides health coverage to eligible employees or contributes money to pay
3.12for all or part of the cost of health coverage for eligible employees, must purchase such
3.13coverage through the school employee insurance program under subdivision 12. School
3.14employers described in paragraph (b) may opt out as described in paragraphs (b) to (e).
3.15(b) The school board of a school employer and each exclusive representative of
3.16employees of a school employer which, on July 1, 2011, was individually self-insured
3.17shall jointly determine whether the employees the exclusive representative represents will
3.18opt out of the school employee insurance program, in the same manner described in
3.19subdivision 5, paragraph (b). Paragraphs (c), (d), and (e) apply only to school employees
3.20of the school employers described in this paragraph.
3.21(c) School employees not represented by an exclusive representative may enter
3.22the school employee insurance program in the same manner described in subdivision 5,
3.23paragraph (c).
3.24(d) School employees who do not enter the program upon first becoming eligible
3.25for participation are ineligible to participate for four years and must be pooled and rated
3.26separately from the other enrollees in the school employee insurance program for the
3.27first four years after entering the program. This paragraph does not apply to a school
3.28employee upon later becoming a member of a school employee group that has not
3.29declined participation.
3.30(e) The decision of a school board of a school employer and an exclusive
3.31representative of school employees or, in the case of unorganized employees, the decision
3.32of the school board of a school employer, to not opt-out of entry into the school employee
3.33insurance program is irrevocable and applies to all future years.
4.1 Sec. 7. Minnesota Statutes 2010, section 43A.316, is amended by adding a subdivision
4.2to read:
4.3 Subd. 14. School Employee Insurance Committee. (a) Notwithstanding any other
4.4provision of law, all plan design decisions, including all pilot or demonstration programs
4.5in which school employees participate, must first be developed by the School Employee
4.6Insurance Committee in consultation with the commissioner or the commissioner's
4.7designee and other consultants as the committee sees fit. This paragraph does not apply to
4.8the initial offerings specified in subdivision 12.
4.9(b) The committee must be composed of 14 members who represent school
4.10district employees and employers in equal number. The employee representatives shall
4.11be appointed as follows: four shall be appointed by Education Minnesota, one shall be
4.12appointed by the Service Employees International Union, one shall be appointed by the
4.13American Federation of State, County, and Municipal Employees, and one shall be
4.14appointed by the Minnesota School Employees Association. The seven school employer
4.15representatives who serve on the School Employee Insurance Committee must be
4.16appointed by the Minnesota School Boards Association, and geographic representation
4.17must be taken into consideration when making the appointments. Members of the
4.18committee shall serve at the will of the appointing organization. The committee will
4.19select a chair from its membership.
4.20(c) The School Employee Insurance Committee members are eligible for
4.21compensation and expense reimbursement under section 15.0575, subdivision 3. In
4.22addition, if actual salary is lost by a committee member, or if a cost is charged by an
4.23employer of a committee member for time missed while performing the duties of a
4.24committee member, then the commissioner shall reimburse the member for the lost salary
4.25or the cost from funds appropriated for the operations of the committee.
4.26(d) The commissioner shall provide the necessary meeting space and staff support
4.27for the committee.
4.28 Sec. 8. Minnesota Statutes 2010, section 43A.316, is amended by adding a subdivision
4.29to read:
4.30 Subd. 15. Reinsurance. The commissioner shall, on behalf of the program,
4.31participate in an insured or self-insured reinsurance pool for the first three years of the
4.32program and may continue to participate in a reinsurance pool after the first three years.
4.33 Sec. 9. Minnesota Statutes 2010, section 43A.316, is amended by adding a subdivision
4.34to read:
5.1 Subd. 16. Nonidentifiable aggregate claims data from past coverage. Upon
5.2request by the commissioner, entities that are providing or have provided coverage to
5.3eligible employees of school employers within two years before the effective date of
5.4this section, shall provide to the commissioner at no charge nonidentifiable aggregate
5.5claims data for that coverage. The information must include data relating to employee
5.6group benefit sets, demographics, and claims experience. Notwithstanding section 13.203,
5.7Minnesota service cooperatives must comply with this subdivision.
5.8 Sec. 10. Minnesota Statutes 2010, section 62E.02, subdivision 23, is amended to read:
5.9 Subd. 23. Contributing member. "Contributing member" means those companies
5.10regulated under chapter 62A and offering, selling, issuing, or renewing policies or
5.11contracts of accident and health insurance; health maintenance organizations regulated
5.12under chapter 62D; nonprofit health service plan corporations regulated under chapter
5.1362C; community integrated service networks regulated under chapter 62N; fraternal
5.14benefit societies regulated under chapter 64B; the Minnesota employees insurance
5.15program established in section43A.317 , effective July 1, 1993; and joint self-insurance
5.16plans regulated under chapter 62H; and the school employee insurance program created
5.17under section 43A.316. For the purposes of determining liability of contributing members
5.18pursuant to section62E.11 payments received from or on behalf of Minnesota residents
5.19for coverage by a health maintenance organizationor, a community integrated service
5.20network, or the school employee insurance program shall be considered to be accident
5.21and health insurance premiums.
5.22 Sec. 11. Minnesota Statutes 2010, section 62E.10, subdivision 1, is amended to read:
5.23 Subdivision 1. Creation and membership; tax exemption. (a) There is established
5.24a Comprehensive Health Association to promote the public health and welfare of the state
5.25of Minnesota with membership consisting of all insurers; self-insurers; fraternals; joint
5.26self-insurance plans regulated under chapter 62H; the Minnesota employees insurance
5.27program established in section43A.317 , effective July 1, 1993; the school employee
5.28insurance program created under section43A.316 , subdivision 12; health maintenance
5.29organizations; and community integrated service networks licensed or authorized to do
5.30business in this state.
5.31(b) The Comprehensive Health Association is exempt from the taxes imposed under
5.32chapter 297I and any other laws of this state and all property owned by the association
5.33is exempt from taxation.
6.1 Sec. 12. Minnesota Statutes 2010, section 62E.11, subdivision 5, is amended to read:
6.2 Subd. 5. Allocation of losses. (a) Each contributing member of the association shall
6.3share the losses due to claims expenses of the comprehensive health insurance plan for
6.4plans issued or approved for issuance by the association, and shall share in the operating
6.5and administrative expenses incurred or estimated to be incurred by the association
6.6incident to the conduct of its affairs. Claims expenses of the state plan which exceed
6.7the premium payments allocated to the payment of benefits shall be the liability of the
6.8contributing members. Contributing members shall share in the claims expense of the
6.9state plan and operating and administrative expenses of the association in an amount equal
6.10to the ratio of the contributing member's total accident and health insurance premium,
6.11received from or on behalf of Minnesota residents as divided by the total accident and
6.12health insurance premium, received by all contributing members from or on behalf of
6.13Minnesota residents, as determined by the commissioner. Payments made by the state
6.14to a contributing member for medical assistance, MinnesotaCare, or general assistance
6.15medical care services according to chapters 256, 256B, and 256D shall be excluded when
6.16determining a contributing member's total premium.
6.17 (b) In making the allocation of losses provided in paragraph (a) in each future year,
6.18the association's assessment against the school employee insurance program must be
6.19based on premiums received by the school employee insurance program in that future year
6.20from the school employers that, on May 1, 2011, were receiving health care coverage from
6.21a contributing member of the association. The association shall assess the premiums
6.22paid in each future year by those employers at the same rate as premiums paid to other
6.23members of the association. For purposes of this calculation, premiums of the program
6.24used must be net of rate credits and retroactive rate refunds on the same basis as the
6.25premiums of other association members.
6.26 Sec. 13. Minnesota Statutes 2010, section 297I.05, is amended by adding a subdivision
6.27to read:
6.28 Subd. 15. School employee insurance program. A tax is imposed on the school
6.29employee insurance program created under section 43A.316, subdivision 12. The tax must
6.30be assessed upon gross premiums less return premiums received by the school employee
6.31insurance program in that calendar year from a school employer that, on May 1, 2011,
6.32was purchasing health care coverage from an entity that is required to pay tax under
6.33subdivision 1, 3, 4, or 5. The commissioner shall assess the premiums paid in each year to
6.34the school employee insurance program by those employers at the same rate as premiums
6.35paid by the entities under subdivision 1, 3, 4, or 5 as applicable to the school employer.
7.1 Sec. 14. Minnesota Statutes 2010, section 297I.15, subdivision 3, is amended to read:
7.2 Subd. 3. Public employees insurance program. Premiums paid to the public
7.3employees insurance program under section43A.316 are exempt from the taxes imposed
7.4under this chapter, except for premiums paid to the school employee insurance program as
7.5provided in section 297I.05, subdivision 15.
7.6 Sec. 15. APPOINTMENTS TO SCHOOL EMPLOYEE INSURANCE
7.7COMMITTEE; FIRST MEETING.
7.8The appointing authorities under Minnesota Statutes, section 43A.316, subdivision
7.914, shall complete their initial appointments no later than August 1, 2011. The
7.10commissioner of management and budget, or the commissioner's designee, shall convene
7.11the first meeting of the school employee insurance committee within 30 days after
7.12determining that (1) an amendment or change to the coverage offered under Minnesota
7.13Statutes, section 43A.316, subdivision 12, is necessary; or (2) advice from the committee
7.14concerning the administration of the coverage would assist the commissioner.
7.15 Sec. 16. START-UP FUNDING; ADMINISTRATION OF ONGOING
7.16REVENUES AND EXPENSES.
7.17(a) The commissioner of management and budget shall use funds available in the
7.18insurance trust fund under Minnesota Statutes, section 43A.316, subdivision 9, in the form
7.19of temporary funding to pay for the administrative start-up costs necessary under this act.
7.20In addition to the amounts of temporary funding, the commissioner shall determine the
7.21amount of interest lost to the insurance trust fund as a result of the temporary funding.
7.22(b) The commissioner of management and budget shall impose an enrollment
7.23fee upon the premium charged for the first three months of coverage under the school
7.24employee insurance program created in this act sufficient to repay to the insurance trust
7.25fund the loans provided to cover the start-up costs incurred by the commissioner under
7.26paragraph (a), plus foregone interest to the insurance trust fund, as determined under
7.27paragraph (a). The commissioner shall deposit the enrollment fees in the insurance trust
7.28fund.
7.29(c) All costs incurred and revenue received by the commissioner of management and
7.30budget under this act in addition to those dealt with in paragraphs (a) and (b), shall on an
7.31ongoing basis be deposited into and paid out of the insurance trust fund as provided in
7.32Minnesota Statutes, section 43A.316, subdivision 9, as amended in this act.
7.33 Sec. 17. EFFECTIVE DATE.
8.1Sections 1 to 6 and 8 to 12 are effective for coverage to begin January 1, 2013.
8.2Sections 7 and 15 are effective August 1, 2011.
1.3coverage through the public employees insurance program; imposing a gross
1.4premiums tax on the program; imposing an enrollment fee;amending Minnesota
1.5Statutes 2010, sections 43A.316, subdivisions 9, 10, by adding subdivisions;
1.662E.02, subdivision 23; 62E.10, subdivision 1; 62E.11, subdivision 5; 297I.05,
1.7by adding a subdivision; 297I.15, subdivision 3.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2010, section 43A.316, is amended by adding a
1.10subdivision to read:
1.11 Subd. 3a. Health improvement programs. The commissioner, with the approval
1.12of the school employee insurance committee, is authorized to plan, develop, purchase,
1.13administer, and evaluate disease management and other programs, strategies, and
1.14incentives to improve the health and health outcomes of members.
1.15 Sec. 2. Minnesota Statutes 2010, section 43A.316, subdivision 9, is amended to read:
1.16 Subd. 9. Insurance trust fund. (a) The insurance trust fund in the state treasury
1.17consists of deposits of the premiums received from employers participating in the
1.18program and transfers before July 1, 1994, from the excess contributions holding account
1.19established by section
1.20the commissioner to pay insurance premiums, approved claims, refunds, administrative
1.21costs, and other related
1.22297I in connection with the school employee insurance program. Premiums paid by
1.23employers to the fund are exempt from the taxes imposed by chapter 297I, except as
1.24described in paragraph (b). The commissioner shall reserve an amount of money to cover
2.1the estimated costs of claims incurred but unpaid. The State Board of Investment shall
2.2invest the money according to section
2.3to the fund must be credited to the fund.
2.4(b) Notwithstanding paragraph (a), premium revenues collected from the school
2.5employee insurance program, described in subdivisions 12 and 13, are not exempt from
2.6the taxes imposed under section 297I.05, subdivision 15.
2.7 Sec. 3. Minnesota Statutes 2010, section 43A.316, subdivision 10, is amended to read:
2.8 Subd. 10. Exemption. (a) The public employee insurance program and, where
2.9applicable, the employers participating in it are exempt from chapters 60A, 62A, 62C,
2.1062D, 62E, and 62H, section
2.11of section
2.12(b) Notwithstanding paragraph (a), the school employee insurance program,
2.13described in subdivisions 12 and 13, is a contributing member of the Minnesota
2.14Comprehensive Health Association and must pay assessments made by the association on
2.15the premium revenue attributed to the school employee insurance program, prorated as
2.16provided in section 62E.11, subdivision 5, paragraph (b).
2.17 Sec. 4. Minnesota Statutes 2010, section 43A.316, is amended by adding a subdivision
2.18to read:
2.19 Subd. 11. Definitions. (a) For purposes of subdivisions 11 to 16, the terms defined
2.20in this subdivision have the meanings given.
2.21(b) "Eligible employee" means an employee of a school employer, a dependent of
2.22such an employee, a retiree, or other person, who is eligible for health insurance coverage
2.23under the school employer's plan.
2.24(c) "School Employee Insurance Committee" means the committee created in
2.25subdivision 14.
2.26(d) "School employer" means a school district as defined in section 120A.05, service
2.27cooperative as defined in section 123A.21, intermediate district as defined in section
2.28136D.01, Cooperative Center for Vocational Education as defined in section 123A.22,
2.29regional management information center as defined in section 123A.23, or an education
2.30unit organized under a joint powers agreement under section 471.59.
2.31 Sec. 5. Minnesota Statutes 2010, section 43A.316, is amended by adding a subdivision
2.32to read:
3.1 Subd. 12. School employee insurance program. The commissioner shall develop
3.2and administer within the public employees insurance program a separately rated and
3.3administered program for eligible employees of school employers, to be called the
3.4school employee insurance program. The initial offerings must be the PEIP Advantage,
3.5Advantage Value, and Advantage HSA plans offered by the public employee insurance
3.6program. Health coverage offered through the school employee insurance program must
3.7be made available beginning January 1, 2013.
3.8 Sec. 6. Minnesota Statutes 2010, section 43A.316, is amended by adding a subdivision
3.9to read:
3.10 Subd. 13. Enrollment; school employee insurance program. (a) A school
3.11employer that provides health coverage to eligible employees or contributes money to pay
3.12for all or part of the cost of health coverage for eligible employees, must purchase such
3.13coverage through the school employee insurance program under subdivision 12. School
3.14employers described in paragraph (b) may opt out as described in paragraphs (b) to (e).
3.15(b) The school board of a school employer and each exclusive representative of
3.16employees of a school employer which, on July 1, 2011, was individually self-insured
3.17shall jointly determine whether the employees the exclusive representative represents will
3.18opt out of the school employee insurance program, in the same manner described in
3.19subdivision 5, paragraph (b). Paragraphs (c), (d), and (e) apply only to school employees
3.20of the school employers described in this paragraph.
3.21(c) School employees not represented by an exclusive representative may enter
3.22the school employee insurance program in the same manner described in subdivision 5,
3.23paragraph (c).
3.24(d) School employees who do not enter the program upon first becoming eligible
3.25for participation are ineligible to participate for four years and must be pooled and rated
3.26separately from the other enrollees in the school employee insurance program for the
3.27first four years after entering the program. This paragraph does not apply to a school
3.28employee upon later becoming a member of a school employee group that has not
3.29declined participation.
3.30(e) The decision of a school board of a school employer and an exclusive
3.31representative of school employees or, in the case of unorganized employees, the decision
3.32of the school board of a school employer, to not opt-out of entry into the school employee
3.33insurance program is irrevocable and applies to all future years.
4.1 Sec. 7. Minnesota Statutes 2010, section 43A.316, is amended by adding a subdivision
4.2to read:
4.3 Subd. 14. School Employee Insurance Committee. (a) Notwithstanding any other
4.4provision of law, all plan design decisions, including all pilot or demonstration programs
4.5in which school employees participate, must first be developed by the School Employee
4.6Insurance Committee in consultation with the commissioner or the commissioner's
4.7designee and other consultants as the committee sees fit. This paragraph does not apply to
4.8the initial offerings specified in subdivision 12.
4.9(b) The committee must be composed of 14 members who represent school
4.10district employees and employers in equal number. The employee representatives shall
4.11be appointed as follows: four shall be appointed by Education Minnesota, one shall be
4.12appointed by the Service Employees International Union, one shall be appointed by the
4.13American Federation of State, County, and Municipal Employees, and one shall be
4.14appointed by the Minnesota School Employees Association. The seven school employer
4.15representatives who serve on the School Employee Insurance Committee must be
4.16appointed by the Minnesota School Boards Association, and geographic representation
4.17must be taken into consideration when making the appointments. Members of the
4.18committee shall serve at the will of the appointing organization. The committee will
4.19select a chair from its membership.
4.20(c) The School Employee Insurance Committee members are eligible for
4.21compensation and expense reimbursement under section 15.0575, subdivision 3. In
4.22addition, if actual salary is lost by a committee member, or if a cost is charged by an
4.23employer of a committee member for time missed while performing the duties of a
4.24committee member, then the commissioner shall reimburse the member for the lost salary
4.25or the cost from funds appropriated for the operations of the committee.
4.26(d) The commissioner shall provide the necessary meeting space and staff support
4.27for the committee.
4.28 Sec. 8. Minnesota Statutes 2010, section 43A.316, is amended by adding a subdivision
4.29to read:
4.30 Subd. 15. Reinsurance. The commissioner shall, on behalf of the program,
4.31participate in an insured or self-insured reinsurance pool for the first three years of the
4.32program and may continue to participate in a reinsurance pool after the first three years.
4.33 Sec. 9. Minnesota Statutes 2010, section 43A.316, is amended by adding a subdivision
4.34to read:
5.1 Subd. 16. Nonidentifiable aggregate claims data from past coverage. Upon
5.2request by the commissioner, entities that are providing or have provided coverage to
5.3eligible employees of school employers within two years before the effective date of
5.4this section, shall provide to the commissioner at no charge nonidentifiable aggregate
5.5claims data for that coverage. The information must include data relating to employee
5.6group benefit sets, demographics, and claims experience. Notwithstanding section 13.203,
5.7Minnesota service cooperatives must comply with this subdivision.
5.8 Sec. 10. Minnesota Statutes 2010, section 62E.02, subdivision 23, is amended to read:
5.9 Subd. 23. Contributing member. "Contributing member" means those companies
5.10regulated under chapter 62A and offering, selling, issuing, or renewing policies or
5.11contracts of accident and health insurance; health maintenance organizations regulated
5.12under chapter 62D; nonprofit health service plan corporations regulated under chapter
5.1362C; community integrated service networks regulated under chapter 62N; fraternal
5.14benefit societies regulated under chapter 64B; the Minnesota employees insurance
5.15program established in section
5.16plans regulated under chapter 62H; and the school employee insurance program created
5.17under section 43A.316. For the purposes of determining liability of contributing members
5.18pursuant to section
5.19for coverage by a health maintenance organization
5.20network, or the school employee insurance program shall be considered to be accident
5.21and health insurance premiums.
5.22 Sec. 11. Minnesota Statutes 2010, section 62E.10, subdivision 1, is amended to read:
5.23 Subdivision 1. Creation and membership; tax exemption. (a) There is established
5.24a Comprehensive Health Association to promote the public health and welfare of the state
5.25of Minnesota with membership consisting of all insurers; self-insurers; fraternals; joint
5.26self-insurance plans regulated under chapter 62H; the Minnesota employees insurance
5.27program established in section
5.28insurance program created under section
5.29organizations; and community integrated service networks licensed or authorized to do
5.30business in this state.
5.31(b) The Comprehensive Health Association is exempt from the taxes imposed under
5.32chapter 297I and any other laws of this state and all property owned by the association
5.33is exempt from taxation.
6.1 Sec. 12. Minnesota Statutes 2010, section 62E.11, subdivision 5, is amended to read:
6.2 Subd. 5. Allocation of losses. (a) Each contributing member of the association shall
6.3share the losses due to claims expenses of the comprehensive health insurance plan for
6.4plans issued or approved for issuance by the association, and shall share in the operating
6.5and administrative expenses incurred or estimated to be incurred by the association
6.6incident to the conduct of its affairs. Claims expenses of the state plan which exceed
6.7the premium payments allocated to the payment of benefits shall be the liability of the
6.8contributing members. Contributing members shall share in the claims expense of the
6.9state plan and operating and administrative expenses of the association in an amount equal
6.10to the ratio of the contributing member's total accident and health insurance premium,
6.11received from or on behalf of Minnesota residents as divided by the total accident and
6.12health insurance premium, received by all contributing members from or on behalf of
6.13Minnesota residents, as determined by the commissioner. Payments made by the state
6.14to a contributing member for medical assistance, MinnesotaCare, or general assistance
6.15medical care services according to chapters 256, 256B, and 256D shall be excluded when
6.16determining a contributing member's total premium.
6.17 (b) In making the allocation of losses provided in paragraph (a) in each future year,
6.18the association's assessment against the school employee insurance program must be
6.19based on premiums received by the school employee insurance program in that future year
6.20from the school employers that, on May 1, 2011, were receiving health care coverage from
6.21a contributing member of the association. The association shall assess the premiums
6.22paid in each future year by those employers at the same rate as premiums paid to other
6.23members of the association. For purposes of this calculation, premiums of the program
6.24used must be net of rate credits and retroactive rate refunds on the same basis as the
6.25premiums of other association members.
6.26 Sec. 13. Minnesota Statutes 2010, section 297I.05, is amended by adding a subdivision
6.27to read:
6.28 Subd. 15. School employee insurance program. A tax is imposed on the school
6.29employee insurance program created under section 43A.316, subdivision 12. The tax must
6.30be assessed upon gross premiums less return premiums received by the school employee
6.31insurance program in that calendar year from a school employer that, on May 1, 2011,
6.32was purchasing health care coverage from an entity that is required to pay tax under
6.33subdivision 1, 3, 4, or 5. The commissioner shall assess the premiums paid in each year to
6.34the school employee insurance program by those employers at the same rate as premiums
6.35paid by the entities under subdivision 1, 3, 4, or 5 as applicable to the school employer.
7.1 Sec. 14. Minnesota Statutes 2010, section 297I.15, subdivision 3, is amended to read:
7.2 Subd. 3. Public employees insurance program. Premiums paid to the public
7.3employees insurance program under section
7.4under this chapter, except for premiums paid to the school employee insurance program as
7.5provided in section 297I.05, subdivision 15.
7.6 Sec. 15. APPOINTMENTS TO SCHOOL EMPLOYEE INSURANCE
7.7COMMITTEE; FIRST MEETING.
7.8The appointing authorities under Minnesota Statutes, section 43A.316, subdivision
7.914, shall complete their initial appointments no later than August 1, 2011. The
7.10commissioner of management and budget, or the commissioner's designee, shall convene
7.11the first meeting of the school employee insurance committee within 30 days after
7.12determining that (1) an amendment or change to the coverage offered under Minnesota
7.13Statutes, section 43A.316, subdivision 12, is necessary; or (2) advice from the committee
7.14concerning the administration of the coverage would assist the commissioner.
7.15 Sec. 16. START-UP FUNDING; ADMINISTRATION OF ONGOING
7.16REVENUES AND EXPENSES.
7.17(a) The commissioner of management and budget shall use funds available in the
7.18insurance trust fund under Minnesota Statutes, section 43A.316, subdivision 9, in the form
7.19of temporary funding to pay for the administrative start-up costs necessary under this act.
7.20In addition to the amounts of temporary funding, the commissioner shall determine the
7.21amount of interest lost to the insurance trust fund as a result of the temporary funding.
7.22(b) The commissioner of management and budget shall impose an enrollment
7.23fee upon the premium charged for the first three months of coverage under the school
7.24employee insurance program created in this act sufficient to repay to the insurance trust
7.25fund the loans provided to cover the start-up costs incurred by the commissioner under
7.26paragraph (a), plus foregone interest to the insurance trust fund, as determined under
7.27paragraph (a). The commissioner shall deposit the enrollment fees in the insurance trust
7.28fund.
7.29(c) All costs incurred and revenue received by the commissioner of management and
7.30budget under this act in addition to those dealt with in paragraphs (a) and (b), shall on an
7.31ongoing basis be deposited into and paid out of the insurance trust fund as provided in
7.32Minnesota Statutes, section 43A.316, subdivision 9, as amended in this act.
7.33 Sec. 17. EFFECTIVE DATE.
8.1Sections 1 to 6 and 8 to 12 are effective for coverage to begin January 1, 2013.
8.2Sections 7 and 15 are effective August 1, 2011.
