1.1                          A bill for an act 
  1.2             relating to human services; modifying the definition 
  1.3             of employer-subsidized insurance under MinnesotaCare; 
  1.4             providing exemptions from the four-month uninsured 
  1.5             requirement; repealing a prohibition on coverage in 
  1.6             the same month; amending Minnesota Statutes 2000, 
  1.7             section 256L.07, subdivision 2, and by adding 
  1.8             subdivisions; repealing Minnesota Statutes 2000, 
  1.9             section 256L.04, subdivision 9. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 2000, section 256L.07, 
  1.12  subdivision 2, is amended to read: 
  1.13     Subd. 2.  [MUST NOT HAVE ACCESS TO EMPLOYER-SUBSIDIZED 
  1.14  COVERAGE.] (a) To be eligible, a family or individual must not 
  1.15  have access to subsidized health coverage through an employer 
  1.16  and must not have had access to employer-subsidized coverage 
  1.17  through a current employer for 18 months prior to application or 
  1.18  reapplication.  A family or individual whose employer-subsidized 
  1.19  coverage is lost due to an employer terminating health care 
  1.20  coverage as an employee benefit during the previous 18 months is 
  1.21  not eligible.  
  1.22     (b) For purposes of this requirement, subsidized health 
  1.23  coverage means health coverage for which the employer pays at 
  1.24  least 50 60 percent of the cost of coverage for the employee or 
  1.25  dependent, or a higher percentage as specified by the 
  1.26  commissioner.  Children are eligible for employer-subsidized 
  1.27  coverage through either parent, including the noncustodial 
  2.1   parent.  The commissioner must treat employer contributions to 
  2.2   Internal Revenue Code Section 125 plans and any other employer 
  2.3   benefits intended to pay health care costs as qualified employer 
  2.4   subsidies toward the cost of health coverage for employees for 
  2.5   purposes of this subdivision. 
  2.6      Sec. 2.  Minnesota Statutes 2000, section 256L.07, is 
  2.7   amended by adding a subdivision to read: 
  2.8      Subd. 5.  [EXEMPTION FOR PERSONS WITH CONTINUATION 
  2.9   COVERAGE.] (a) Families with children and individuals who apply 
  2.10  for the MinnesotaCare program upon termination from continuation 
  2.11  coverage required under federal or state law are exempt from the 
  2.12  requirements of subdivision 3. 
  2.13     (b) For purposes of paragraph (a), "termination from 
  2.14  continuation coverage" means involuntary termination for any 
  2.15  reason, other than premium nonpayment by the family or 
  2.16  individual, including termination due to reaching the end of the 
  2.17  maximum period for continuation coverage required under federal 
  2.18  or state law. 
  2.19     Sec. 3.  Minnesota Statutes 2000, section 256L.07, is 
  2.20  amended by adding a subdivision to read: 
  2.21     Subd. 6.  [EXEMPTION FOR PERSONS LOSING COVERAGE AS A 
  2.22  DEPENDENT.] Individuals who apply for the MinnesotaCare program 
  2.23  upon termination of other health coverage due to loss of status 
  2.24  as a dependent are exempt from the requirements of subdivision 3.
  2.25     Sec. 4.  [REPEALER; PROHIBITION ON COVERAGE UNDER GAMC AND 
  2.26  MINNESOTACARE IN THE SAME MONTH.] 
  2.27     Minnesota Statutes 2000, section 256L.04, subdivision 9, is 
  2.28  repealed effective July 1, 2001.