Bill Text: MN SF805 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Public employees health insurance program modification
Sponsorship: Partisan Bill (Republican 2)
Status: (Introduced - Dead) 2011-03-14 - Referred to State Government Innovation and Veterans [SF805 Detail]
Download: Minnesota-2011-SF805-Introduced.html
1.2relating to state government; making changes to the public employees insurance
1.3program;amending Minnesota Statutes 2010, sections 43A.23, subdivision 1;
1.443A.316, subdivision 8.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 43A.23, subdivision 1, is amended to read:
1.7 Subdivision 1. General. (a) The commissioner is authorized to request proposals
1.8or to negotiate and to enter into contracts with parties which in the judgment of the
1.9commissioner are best qualified to provide service to the benefit plans. Contracts entered
1.10into are not subject to the requirements of sections16C.16 to
16C.19 . The commissioner
1.11may negotiate premium rates and coverage. The commissioner shall consider the cost of
1.12the plans, conversion options relating to the contracts, service capabilities, character,
1.13financial position, and reputation of the carriers, and any other factors which the
1.14commissioner deems appropriate. Each benefit contract must be for a uniform term of at
1.15least one year, but may be made automatically renewable from term to term in the absence
1.16of notice of termination by either party. A carrier licensed under chapter 62A is exempt
1.17from the taxes imposed by chapter 297I on premiums paid to it by the state.
1.18 (b) All self-insured hospital and medical service products must comply with coverage
1.19mandates, data reporting, and consumer protection requirements applicable to the licensed
1.20carrier administering the product, had the product been insured, including chapters 62J,
1.2162M, and 62Q. Any self-insured products that limit coverage to a network of providers
1.22or provide different levels of coverage between network and nonnetwork providers shall
1.23comply with section62D.123 and geographic access standards for health maintenance
1.24organizations adopted by the commissioner of health in rule under chapter 62D.
2.1 (c) Notwithstanding paragraph (b), a self-insured hospital and medical product
2.2offered under sections43A.22 to
43A.30 is not required to extend dependent coverage to
2.3an eligible employee's unmarried child under the age of 25 to the full extent required under
2.4chapters 62A and 62L. Dependent coverage must, at a minimum, extend to an eligible
2.5employee's unmarried child who is under the age of 19 or an unmarried child under the
2.6age of 25 who is a full-time student. A person who is at least 19 years of age but who is
2.7under the age of 25 and who is not a full-time student must be permitted to be enrolled as
2.8a dependent of an eligible employee until age 25 if the person:
2.9(1) was a full-time student immediately prior to being ordered into active military
2.10service, as defined in section190.05, subdivision 5b or 5c;
2.11(2) has been separated or discharged from active military service; and
2.12(3) would be eligible to enroll as a dependent of an eligible employee, except that
2.13the person is not a full-time student.
2.14The definition of "full-time student" for purposes of this paragraph includes any student
2.15who by reason of illness, injury, or physical or mental disability as documented by
2.16a physician is unable to carry what the educational institution considers a full-time
2.17course load so long as the student's course load is at least 60 percent of what otherwise
2.18is considered by the institution to be a full-time course load. Any notice regarding
2.19termination of coverage due to attainment of the limiting age must include information
2.20about this definition of "full-time student."
2.21 (d) Beginning January 1,2010 2012, the health insurance benefit plans offered
2.22in the commissioner's plan under section
43A.18, subdivision 2, and the managerial
2.23plan under section
43A.18, subdivision 3, to state employees, including legislators and
2.24legislative staff, mustinclude an option for a be HSA-eligible high-deductible health plan
2.25plans with a $5,000 annual deductible option that is compatible with the definition of a
2.26high-deductible health plan in section 223 of the United States Internal Revenue Code.
2.27The following provisions apply:
2.28(1) the in-network annual out-of-pocket maximum for each annual deductible shall
2.29be $10,000;
2.30(2) the employer shall make a $1,500 deposit to an individual HSA and $2,500 for a
2.31family and the deposit is dependent upon available biennial appropriation for this purpose;
2.32(3) the plans must cover in-network preventive care at 100 percent not subject to
2.33the deductible and, once the deductible has been met, cover other care with no further
2.34enrollee cost-sharing; and
2.35(4) all premium amounts for the high-deductible health plans shall be paid by the
2.36employee.
3.1 Sec. 2. Minnesota Statutes 2010, section 43A.316, subdivision 8, is amended to read:
3.2 Subd. 8. Continuation of coverage. (a) A former employee of an employer
3.3participating in the program who is receiving a public pension disability benefit or an
3.4annuity or has met the age and service requirements necessary to receive an annuity under
3.5chapter 353, 353C, 354, 354A, 356, 423, 423A, 424, or Minnesota Statutes 2008, chapter
3.6422A, and the former employee's dependents, are eligible to participate in the program.
3.7This participation is at the person's expense unless a collective bargaining agreement or
3.8personnel policy provides otherwise. Premiums for these participants must be established
3.9by the commissioner and the participants shall pay all premium amounts. The plans shall
3.10be high-deductible health insurance plans with a $5,000 deductible.
3.11The commissioner may provide policy exclusions for preexisting conditions
3.12only when there is a break in coverage between a participant's coverage under the
3.13employment-based group insurance program and the participant's coverage under this
3.14section. An employer shall notify an employee of the option to participate under this
3.15paragraph no later than the effective date of retirement. The retired employee or the
3.16employer of a participating group on behalf of a current or retired employee shall notify
3.17the commissioner within 30 days of the effective date of retirement of intent to participate
3.18in the program according to the rules established by the commissioner.
3.19(b) The spouse of a deceased employee or former employee may purchase the
3.20benefits provided at premiums established by the commissioner if the spouse was a
3.21dependent under the employee's or former employee's coverage under this section at the
3.22time of the death. The spouse remains eligible to participate in the program as long as
3.23the group that included the deceased employee or former employee participates in the
3.24program. Coverage under this clause must be coordinated with relevant insurance benefits
3.25provided through the federally sponsored Medicare program.
3.26(c) The program benefits must continue in the event of strike permitted by section
3.27179A.18
, if the exclusive representative chooses to have coverage continue and the
3.28employee pays the total monthly premiums when due.
3.29(d) A participant who discontinues coverage may not reenroll.
3.30Persons participating under these paragraphs shall make appropriate premium
3.31payments in the time and manner established by the commissioner.
3.32EFFECTIVE DATE.This section is effective the day following final enactment.
1.3program;amending Minnesota Statutes 2010, sections 43A.23, subdivision 1;
1.443A.316, subdivision 8.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 43A.23, subdivision 1, is amended to read:
1.7 Subdivision 1. General. (a) The commissioner is authorized to request proposals
1.8or to negotiate and to enter into contracts with parties which in the judgment of the
1.9commissioner are best qualified to provide service to the benefit plans. Contracts entered
1.10into are not subject to the requirements of sections
1.11may negotiate premium rates and coverage. The commissioner shall consider the cost of
1.12the plans, conversion options relating to the contracts, service capabilities, character,
1.13financial position, and reputation of the carriers, and any other factors which the
1.14commissioner deems appropriate. Each benefit contract must be for a uniform term of at
1.15least one year, but may be made automatically renewable from term to term in the absence
1.16of notice of termination by either party. A carrier licensed under chapter 62A is exempt
1.17from the taxes imposed by chapter 297I on premiums paid to it by the state.
1.18 (b) All self-insured hospital and medical service products must comply with coverage
1.19mandates, data reporting, and consumer protection requirements applicable to the licensed
1.20carrier administering the product, had the product been insured, including chapters 62J,
1.2162M, and 62Q. Any self-insured products that limit coverage to a network of providers
1.22or provide different levels of coverage between network and nonnetwork providers shall
1.23comply with section
1.24organizations adopted by the commissioner of health in rule under chapter 62D.
2.1 (c) Notwithstanding paragraph (b), a self-insured hospital and medical product
2.2offered under sections
2.3an eligible employee's unmarried child under the age of 25 to the full extent required under
2.4chapters 62A and 62L. Dependent coverage must, at a minimum, extend to an eligible
2.5employee's unmarried child who is under the age of 19 or an unmarried child under the
2.6age of 25 who is a full-time student. A person who is at least 19 years of age but who is
2.7under the age of 25 and who is not a full-time student must be permitted to be enrolled as
2.8a dependent of an eligible employee until age 25 if the person:
2.9(1) was a full-time student immediately prior to being ordered into active military
2.10service, as defined in section
2.11(2) has been separated or discharged from active military service; and
2.12(3) would be eligible to enroll as a dependent of an eligible employee, except that
2.13the person is not a full-time student.
2.14The definition of "full-time student" for purposes of this paragraph includes any student
2.15who by reason of illness, injury, or physical or mental disability as documented by
2.16a physician is unable to carry what the educational institution considers a full-time
2.17course load so long as the student's course load is at least 60 percent of what otherwise
2.18is considered by the institution to be a full-time course load. Any notice regarding
2.19termination of coverage due to attainment of the limiting age must include information
2.20about this definition of "full-time student."
2.21 (d) Beginning January 1,
2.22
2.23
2.24legislative staff, must
2.25plans with a $5,000 annual deductible option that is compatible with the definition of a
2.26high-deductible health plan in section 223 of the United States Internal Revenue Code.
2.27The following provisions apply:
2.28(1) the in-network annual out-of-pocket maximum for each annual deductible shall
2.29be $10,000;
2.30(2) the employer shall make a $1,500 deposit to an individual HSA and $2,500 for a
2.31family and the deposit is dependent upon available biennial appropriation for this purpose;
2.32(3) the plans must cover in-network preventive care at 100 percent not subject to
2.33the deductible and, once the deductible has been met, cover other care with no further
2.34enrollee cost-sharing; and
2.35(4) all premium amounts for the high-deductible health plans shall be paid by the
2.36employee.
3.1 Sec. 2. Minnesota Statutes 2010, section 43A.316, subdivision 8, is amended to read:
3.2 Subd. 8. Continuation of coverage. (a) A former employee of an employer
3.3participating in the program who is receiving a public pension disability benefit or an
3.4annuity or has met the age and service requirements necessary to receive an annuity under
3.5chapter 353, 353C, 354, 354A, 356, 423, 423A, 424, or Minnesota Statutes 2008, chapter
3.6422A, and the former employee's dependents, are eligible to participate in the program.
3.7This participation is at the person's expense unless a collective bargaining agreement or
3.8personnel policy provides otherwise. Premiums for these participants must be established
3.9by the commissioner and the participants shall pay all premium amounts. The plans shall
3.10be high-deductible health insurance plans with a $5,000 deductible.
3.11The commissioner may provide policy exclusions for preexisting conditions
3.12only when there is a break in coverage between a participant's coverage under the
3.13employment-based group insurance program and the participant's coverage under this
3.14section. An employer shall notify an employee of the option to participate under this
3.15paragraph no later than the effective date of retirement. The retired employee or the
3.16employer of a participating group on behalf of a current or retired employee shall notify
3.17the commissioner within 30 days of the effective date of retirement of intent to participate
3.18in the program according to the rules established by the commissioner.
3.19(b) The spouse of a deceased employee or former employee may purchase the
3.20benefits provided at premiums established by the commissioner if the spouse was a
3.21dependent under the employee's or former employee's coverage under this section at the
3.22time of the death. The spouse remains eligible to participate in the program as long as
3.23the group that included the deceased employee or former employee participates in the
3.24program. Coverage under this clause must be coordinated with relevant insurance benefits
3.25provided through the federally sponsored Medicare program.
3.26(c) The program benefits must continue in the event of strike permitted by section
3.28employee pays the total monthly premiums when due.
3.29(d) A participant who discontinues coverage may not reenroll.
3.30Persons participating under these paragraphs shall make appropriate premium
3.31payments in the time and manner established by the commissioner.
3.32EFFECTIVE DATE.This section is effective the day following final enactment.
