Bill Text: MN SF646 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Public employee insurance program (PEIP) provisions modifications for local government employees
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2011-04-11 - Comm report: To pass and re-referred to Taxes [SF646 Detail]
Download: Minnesota-2011-SF646-Introduced.html
1.2relating to insurance; making changes in the public employee insurance program
1.3administrated by Minnesota Management and Budget for local government
1.4employees; requiring that the program pay certain taxes and assessments on
1.5the same basis as private sector health insurers;amending Minnesota Statutes
1.62010, sections 43A.316, subdivisions 9, 10; 62E.02, subdivision 23; 62E.10,
1.7subdivision 1; 297I.05, subdivision 12; repealing Minnesota Statutes 2010,
1.8section 297I.15, subdivision 3.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.10 Section 1. Minnesota Statutes 2010, section 43A.316, subdivision 9, is amended to
1.11read:
1.12 Subd. 9. Insurance trust fund. The insurance trust fund in the state treasury
1.13consists of deposits of the premiums received from employers participating in the
1.14program and transfers before July 1, 1994, from the excess contributions holding account
1.15established by section353.65, subdivision 7 . All money in the fund is appropriated to
1.16the commissioner to pay insurance premiums, approved claims, refunds, administrative
1.17costs, and other relatedservice costs, including costs and assessments incurred under
1.18chapters 62E and 297I in connection with the public employee insurance program.
1.19Premiums paid by employers to the fund are exempt from the taxes imposed by chapter
1.20297I, except for those attributable to the public employee insurance program under section
1.21297I.05, subdivision 12. The commissioner shall reserve an amountof money to cover
1.22the estimated costs of claims incurred but unpaid equal to at least two months' claim
1.23costs. The State Board of Investment shall invest the money according to section11A.24 .
1.24Investment income and losses attributable to the fund must be credited to the fund.
1.25EFFECTIVE DATE.This section is effective the day following final enactment.
2.1 Sec. 2. Minnesota Statutes 2010, section 43A.316, subdivision 10, is amended to read:
2.2 Subd. 10. Exemption. (a) The public employee insurance program and, where
2.3applicable, the employers participating in it are exempt from chapters 60A,62A,
2.462C, 62D,62E, and 62H, and section
471.617, subdivisions 2 and 3 , and the bidding
2.5requirements of section
471.6161
2.6(b) Notwithstanding paragraph (a), the public employee insurance program is a
2.7contributing member of the Minnesota Comprehensive Health Association and must pay
2.8assessments of the association on the gross premium revenue minus any return premiums.
2.9Premiums received from the groups that were covered by the public employee insurance
2.10program before May 1, 2011, are exempt from paying the assessment so long as the groups
2.11maintain continuous coverage in the public employee insurance program.
2.12EFFECTIVE DATE.This section is effective the day following final enactment.
2.13 Sec. 3. Minnesota Statutes 2010, section 62E.02, subdivision 23, is amended to read:
2.14 Subd. 23. Contributing member. "Contributing member" means those companies
2.15regulated under chapter 62A and offering, selling, issuing, or renewing policies or
2.16contracts of accident and health insurance; health maintenance organizations regulated
2.17under chapter 62D; nonprofit health service plan corporations regulated under chapter 62C;
2.18community integrated service networks regulated under chapter 62N; fraternal benefit
2.19societies regulated under chapter 64B; the Minnesota employees insurance program
2.20established in section43A.317 , effective July 1, 1993; and joint self-insurance plans
2.21regulated under chapter 62H; and the public employee insurance program established
2.22under section 43A.316. For the purposes of determining liability of contributing members
2.23pursuant to section62E.11 payments received from or on behalf of Minnesota residents
2.24for coverage by a health maintenance organizationor, a community integrated service
2.25network, or the public employee insurance program shall be considered to be accident
2.26and health insurance premiums.
2.27EFFECTIVE DATE.This section is effective the day following final enactment.
2.28 Sec. 4. Minnesota Statutes 2010, section 62E.10, subdivision 1, is amended to read:
2.29 Subdivision 1. Creation and membership; tax exemption. There is established a
2.30Comprehensive Health Association to promote the public health and welfare of the state
2.31of Minnesota with membership consisting of all insurers; self-insurers; fraternals; joint
2.32self-insurance plans regulated under chapter 62H; the Minnesota employees insurance
2.33program established in section43A.317 , effective July 1, 1993; the public employee
3.1insurance program established under section 43A.316; health maintenance organizations;
3.2and community integrated service networks licensed or authorized to do business in this
3.3state. The Comprehensive Health Association is exempt from the taxes imposed under
3.4chapter 297I and any other laws of this state and all property owned by the association
3.5is exempt from taxation.
3.6EFFECTIVE DATE.This section is effective the day following final enactment.
3.7 Sec. 5. Minnesota Statutes 2010, section 297I.05, subdivision 12, is amended to read:
3.8 Subd. 12. Other entities. (a) A tax is imposed equal to two percent of:
3.9 (1) gross premiums less return premiums written for risks resident or located in
3.10Minnesota by a risk retention group;
3.11 (2) gross premiums less return premiums received by an attorney in fact acting
3.12in accordance with chapter 71A;
3.13 (3) gross premiums less return premiums received pursuant to assigned risk policies
3.14and contracts of coverage under chapter 79;
3.15 (4) the direct funded premium received by the reinsurance association under section
3.1679.34
from self-insurers approved under section
176.181 and political subdivisions that
3.17self-insure; and
3.18 (5) gross premiums less return premiums paid to an insurer other than a licensed
3.19insurance company or a surplus lines licensee for coverage of risks resident or located in
3.20Minnesota by a purchasing group or any members of the purchasing group to a broker or
3.21agent for the purchasing group.
3.22 (b) A tax is imposed on a joint self-insurance plan operating under chapter 60F. The
3.23rate of tax is equal to two percent of the total amount of claims paid during the fund year,
3.24with no deduction for claims wholly or partially reimbursed through stop-loss insurance.
3.25 (c) A tax is imposed on a joint self-insurance plan operating under chapter 62H.
3.26The rate of tax is equal to two percent of the total amount of claims paid during the
3.27fund's fiscal year, with no deduction for claims wholly or partially reimbursed through
3.28stop-loss insurance.
3.29 (d) A tax is imposed equal to the tax imposed under section297I.05, subdivision 5 ,
3.30on the gross premiums less return premiums on all coverages received by an accountable
3.31provider network or agents of an accountable provider network in Minnesota, in cash or
3.32otherwise, during the year.
3.33(e) A tax is imposed on the public employee insurance program equal to two percent
3.34of the gross premiums less return premiums received by the public employee insurance
3.35program in that calendar year. Groups covered by the public employee insurance program
4.1before May 1, 2011, are exempt from the tax so long as they maintain continuous
4.2enrollment in the public employee insurance program.
4.3EFFECTIVE DATE.This section is effective the day following final enactment.
4.4 Sec. 6. REPEALER.
4.5Minnesota Statutes 2010, section 297I.15, subdivision 3, is repealed.
4.6EFFECTIVE DATE.This section is effective the day following final enactment.
1.3administrated by Minnesota Management and Budget for local government
1.4employees; requiring that the program pay certain taxes and assessments on
1.5the same basis as private sector health insurers;amending Minnesota Statutes
1.62010, sections 43A.316, subdivisions 9, 10; 62E.02, subdivision 23; 62E.10,
1.7subdivision 1; 297I.05, subdivision 12; repealing Minnesota Statutes 2010,
1.8section 297I.15, subdivision 3.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.10 Section 1. Minnesota Statutes 2010, section 43A.316, subdivision 9, is amended to
1.11read:
1.12 Subd. 9. Insurance trust fund. The insurance trust fund in the state treasury
1.13consists of deposits of the premiums received from employers participating in the
1.14program and transfers before July 1, 1994, from the excess contributions holding account
1.15established by section
1.16the commissioner to pay insurance premiums, approved claims, refunds, administrative
1.17costs, and other related
1.18chapters 62E and 297I in connection with the public employee insurance program.
1.19Premiums paid by employers to the fund are exempt from the taxes imposed by chapter
1.20297I, except for those attributable to the public employee insurance program under section
1.21297I.05, subdivision 12. The commissioner shall reserve an amount
1.22
1.23costs. The State Board of Investment shall invest the money according to section
1.24Investment income and losses attributable to the fund must be credited to the fund.
1.25EFFECTIVE DATE.This section is effective the day following final enactment.
2.1 Sec. 2. Minnesota Statutes 2010, section 43A.316, subdivision 10, is amended to read:
2.2 Subd. 10. Exemption. (a) The public employee insurance program and, where
2.3applicable, the employers participating in it are exempt from chapters 60A,
2.462C, 62D,
2.5
2.6(b) Notwithstanding paragraph (a), the public employee insurance program is a
2.7contributing member of the Minnesota Comprehensive Health Association and must pay
2.8assessments of the association on the gross premium revenue minus any return premiums.
2.9Premiums received from the groups that were covered by the public employee insurance
2.10program before May 1, 2011, are exempt from paying the assessment so long as the groups
2.11maintain continuous coverage in the public employee insurance program.
2.12EFFECTIVE DATE.This section is effective the day following final enactment.
2.13 Sec. 3. Minnesota Statutes 2010, section 62E.02, subdivision 23, is amended to read:
2.14 Subd. 23. Contributing member. "Contributing member" means those companies
2.15regulated under chapter 62A and offering, selling, issuing, or renewing policies or
2.16contracts of accident and health insurance; health maintenance organizations regulated
2.17under chapter 62D; nonprofit health service plan corporations regulated under chapter 62C;
2.18community integrated service networks regulated under chapter 62N; fraternal benefit
2.19societies regulated under chapter 64B; the Minnesota employees insurance program
2.20established in section
2.21regulated under chapter 62H; and the public employee insurance program established
2.22under section 43A.316. For the purposes of determining liability of contributing members
2.23pursuant to section
2.24for coverage by a health maintenance organization
2.25network, or the public employee insurance program shall be considered to be accident
2.26and health insurance premiums.
2.27EFFECTIVE DATE.This section is effective the day following final enactment.
2.28 Sec. 4. Minnesota Statutes 2010, section 62E.10, subdivision 1, is amended to read:
2.29 Subdivision 1. Creation and membership; tax exemption. There is established a
2.30Comprehensive Health Association to promote the public health and welfare of the state
2.31of Minnesota with membership consisting of all insurers; self-insurers; fraternals; joint
2.32self-insurance plans regulated under chapter 62H; the Minnesota employees insurance
2.33program established in section
3.1insurance program established under section 43A.316; health maintenance organizations;
3.2and community integrated service networks licensed or authorized to do business in this
3.3state. The Comprehensive Health Association is exempt from the taxes imposed under
3.4chapter 297I and any other laws of this state and all property owned by the association
3.5is exempt from taxation.
3.6EFFECTIVE DATE.This section is effective the day following final enactment.
3.7 Sec. 5. Minnesota Statutes 2010, section 297I.05, subdivision 12, is amended to read:
3.8 Subd. 12. Other entities. (a) A tax is imposed equal to two percent of:
3.9 (1) gross premiums less return premiums written for risks resident or located in
3.10Minnesota by a risk retention group;
3.11 (2) gross premiums less return premiums received by an attorney in fact acting
3.12in accordance with chapter 71A;
3.13 (3) gross premiums less return premiums received pursuant to assigned risk policies
3.14and contracts of coverage under chapter 79;
3.15 (4) the direct funded premium received by the reinsurance association under section
3.17self-insure; and
3.18 (5) gross premiums less return premiums paid to an insurer other than a licensed
3.19insurance company or a surplus lines licensee for coverage of risks resident or located in
3.20Minnesota by a purchasing group or any members of the purchasing group to a broker or
3.21agent for the purchasing group.
3.22 (b) A tax is imposed on a joint self-insurance plan operating under chapter 60F. The
3.23rate of tax is equal to two percent of the total amount of claims paid during the fund year,
3.24with no deduction for claims wholly or partially reimbursed through stop-loss insurance.
3.25 (c) A tax is imposed on a joint self-insurance plan operating under chapter 62H.
3.26The rate of tax is equal to two percent of the total amount of claims paid during the
3.27fund's fiscal year, with no deduction for claims wholly or partially reimbursed through
3.28stop-loss insurance.
3.29 (d) A tax is imposed equal to the tax imposed under section
3.30on the gross premiums less return premiums on all coverages received by an accountable
3.31provider network or agents of an accountable provider network in Minnesota, in cash or
3.32otherwise, during the year.
3.33(e) A tax is imposed on the public employee insurance program equal to two percent
3.34of the gross premiums less return premiums received by the public employee insurance
3.35program in that calendar year. Groups covered by the public employee insurance program
4.1before May 1, 2011, are exempt from the tax so long as they maintain continuous
4.2enrollment in the public employee insurance program.
4.3EFFECTIVE DATE.This section is effective the day following final enactment.
4.4 Sec. 6. REPEALER.
4.5Minnesota Statutes 2010, section 297I.15, subdivision 3, is repealed.
4.6EFFECTIVE DATE.This section is effective the day following final enactment.
