HF 3182

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/14/2024 03:49pm

A bill for an act
relating to state government; public employees insurance program modifications;
creating a Minnesota insurance pool committee; requiring a report; appropriating
money; amending Minnesota Statutes 2022, section 43A.316, subdivisions 5, 7.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2022, 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.

(c) Employees not represented by exclusive representatives 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 deleted text begin 50 deleted text end new text begin 15 new text end percent or more from one insurance year to
the next.

(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.

Sec. 2.

Minnesota Statutes 2022, section 43A.316, subdivision 7, is amended to read:

Subd. 7.

Premiums.

new text begin (a) new text end The proportion of premium paid by the employer and employee
is subject to collective bargaining or personnel policies. If, at the beginning of the coverage
period, no collective bargaining agreement has been finalized, the increased dollar costs, if
any, from the previous year is the sole responsibility of the individual participant until a
collective bargaining agreement states otherwise. Premiums, including an administration
fee, shall be established by the commissioner. Each employer shall pay monthly the amounts
due for employee benefits including the amounts under subdivision 8 to the commissioner
no later than the dates established by the commissioner. If an employer fails to make the
payments as required, the commissioner may cancel program benefits and pursue other civil
remedies.

new text begin (b) The program must receive state money to support lower or stabilized premiums for
employers and employees. The money must be used to reduce the amount otherwise charged
to entities enrolled in the program. The program is required to pool all groups when
establishing premium renewal rates and the annual renewal rates issued to each group may
not differ by more than two percent. The state must contribute $38,000,000 before the July
1, 2023, plan year; $49,000,000 before the July 1, 2024, plan year; and $63,000,000 before
the July 1, 2025, plan year.
new text end

Sec. 3.

new text begin MINNESOTA INSURANCE POOL COMMITTEE.
new text end

new text begin Subdivision 1. new text end

new text begin Study and design committee. new text end

new text begin (a) The public employees insurance
program (PEIP) pool expansion study and design committee of 14 members consisting of
exclusive representatives of employees selected by these organizations:
new text end

new text begin (1) four from Education Minnesota;
new text end

new text begin (2) one from Service Employees International Union;
new text end

new text begin (3) one from American Federation of State, County, and Municipal Employees;
new text end

new text begin (4) one from Teamsters; and
new text end

new text begin (5) seven members representing other stakeholders.
new text end

new text begin All members must be appointed jointly by the speaker of the house of representatives, the
senate majority leader, and the governor.
new text end

new text begin (b) Appointments must be made no later than 30 days after the effective date of this
section.
new text end

new text begin (c) Committee members are eligible for compensation and expense reimbursement under
Minnesota Statutes, section 15.0575, subdivision 3.
new text end

new text begin Subd. 2. new text end

new text begin Collection of information. new text end

new text begin The committee established under subdivision 1
must collect and analyze information from health plans currently providing health coverage
to public employers, whether the health plan is insured or self-insured. Health plans providing
coverage to public or public-related employees must provide to the committee nonidentifiable
aggregate data to the extent permitted under applicable state and federal law. The information
must include data relating to employee group demographics and claims experience. Nothing
in this section requires disclosure of proprietary information or data classified as nonpublic
data or confidential data on individuals.
new text end

new text begin Subd. 3. new text end

new text begin Description of study. new text end

new text begin (a) The committee established under subdivision 1 must
study the feasibility and desirability of an expanded PEIP insurance pool. The study must
address the issues of costs, coverage provided, financial feasibility and solvency, and
management. The study must compare:
new text end

new text begin (1) purchase of fully insured coverage through a pooling arrangement;
new text end

new text begin (2) use of a multiple employer welfare arrangement under Minnesota Statutes, chapter
62H; and
new text end

new text begin (3) coverage otherwise available to public employers through existing sources.
new text end

new text begin (b) The study must consider health insurance pools of various sizes, including a pool
that would include all eligible employees as one option. The study must consider the
desirability and effects of the pool on employers of various sizes, financial resources, and
geographic locations within the state. The study must consider the inclusion of nonpublic
schools, home health care workers, daycare providers, and those employed by nursing homes
in the pool. The study must consider any limitations on plan design and effects on regulation
and costs resulting from the inclusion of nonpublic employees.
new text end

new text begin (c) The committee shall also submit a written report to the legislature recommending
how to restructure PEIP to decrease health insurance costs for employees and employers
statewide and to stabilize coverage and rates. In developing its recommendations, the
committee must consider the stability of health insurance costs and the use of larger pooling.
The committee may also consider the use and implementation of a statewide pool for all
residents. The committee must identify and include in its report any statutory changes needed
to implement the committee recommendations.
new text end

new text begin Subd. 4. new text end

new text begin Plan design. new text end

new text begin Using the information collected and analyzed under subdivisions
2 and 3, the committee shall recommend specifications for a health insurance plan to serve
covered employees, including the plan's structure, benefits, approximate premiums,
governance, operations, solvency, and oversight. Any recommended plan must incorporate,
as a key component, consumer education, including wellness programs and measures
encouraging the wise use of health coverage, with the goal of premium reduction and cost
containment. The recommendation must include the projected costs to implement the plan.
new text end

new text begin Subd. 5. new text end

new text begin Work schedule. new text end

new text begin By November 1, 2023, the committee must complete the
collection and analysis of information under subdivisions 3 and 4 and submit an interim
written report to the legislature. By January 15, 2024, the committee must complete its
preparation of a plan design under subdivision 4 and submit its final written report to the
legislature, including a detailed plan design. If the final report recommends legislation, the
report must include a draft of the legislation. Both reports must be submitted in compliance
with Minnesota Statutes, sections 3.195, subdivision 1, and 3.197.
new text end

new text begin Subd. 6. new text end

new text begin Assistance to the committee. new text end

new text begin (a) The committee, or the commissioner of
management and budget on its behalf, may contract for actuarial, legal, and other services
necessary to carry out its duties.
new text end

new text begin (b) The commissioner of management and budget shall provide staff assistance to the
committee, including facilitating meetings; research and writing; data collection; providing
or contracting for actuarial, legal, and other services; and other staff assistance as appropriate.
new text end

new text begin Subd. 7. new text end

new text begin Expiration. new text end

new text begin This section expires upon adjournment sine die of the 2024 regular
legislative session.
new text end

Sec. 4. new text begin APPROPRIATION.
new text end

new text begin $....... in fiscal year 2024 is appropriated from the general fund to the commissioner of
management and budget for purposes of section 1. The base for this program is $....... for
fiscal year 2024 only.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023.
new text end

Sec. 5. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 3 are effective the day following final enactment.
new text end