HF 1875

2nd Unofficial Engrossment - 85th Legislature (2007 - 2008)

Posted on 12/15/2009 12:00 a.m.

1.1A bill for an act 1.2relating to insurance; creating a statewide health insurance purchasing pool for 1.3school district employees; appropriating money; amending Minnesota Statutes 1.42006, section 13.203; proposing coding for new law in Minnesota Statutes, 1.5chapter 179A. 1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.7    Section 1. Minnesota Statutes 2006, section 13.203, is amended to read: 1.813.203 SERVICE COOPERATIVE new text begin AND SCHOOL EMPLOYEE new text end 1.9 new text begin INSURANCE BOARD new text end CLAIMS DATA. 1.10     new text begin (a) new text end Claims experience and all related information received from carriers and claims 1.11administrators participating in a group health or dental plan, including any long-term 1.12disability plan, offered through the Minnesota service cooperatives to Minnesota school 1.13districts and other political subdivisions new text begin or through the Minnesota School Employee new text end 1.14 new text begin Insurance Pool created under section 179A.50 new text end , and survey information collected from 1.15employees and employers participating in these plans and programs, except when the 1.16executive director of a Minnesota service cooperative determines that release of the 1.17data will not be detrimental to the plan or program, are classified as nonpublic data not 1.18on individuals. 1.19     new text begin (b) Data that are classified as nonpublic data under paragraph (a) may be disclosed new text end 1.20 new text begin if the executive director of a Minnesota service cooperative or the Minnesota School new text end 1.21 new text begin Employee Insurance Pool determines that release of the data will not be detrimental to new text end 1.22 new text begin the plan or program. new text end 1.23    Sec. 2. new text begin [179A.50] SCHOOL EMPLOYEE INSURANCE PLAN. new text end 2.1     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin For purposes of this section: new text end 2.2     new text begin (1) "board" or "board of directors" means the board of directors of the Minnesota new text end 2.3 new text begin School Employee Insurance Pool; new text end 2.4     new text begin (2) "eligible employee" means an individual who is insurance eligible under a new text end 2.5 new text begin collective bargaining agreement or under the personnel policy of an eligible employer; new text end 2.6     new text begin (3) "eligible employer" means a school district as defined in section new text end new text begin , a new text end 2.7 new text begin service cooperative as defined in section 123A.21, an intermediate district as defined new text end 2.8 new text begin in section new text end new text begin , a cooperative center for vocational education as defined in section new text end 2.9 new text begin , a regional management information center as defined in section new text end new text begin , an new text end 2.10 new text begin education unit organized under section new text end new text begin , or a charter school organized under section new text end 2.11 new text begin 124D.10; new text end 2.12     new text begin (4) "health plan" means a health plan as defined in section 62A.011; and new text end 2.13     new text begin (5) "pool" or "Minnesota School Employee Insurance Pool" means the Minnesota new text end 2.14 new text begin School Employee Insurance Pool, a public corporation. new text end 2.15     new text begin Subd. 2. new text end new text begin Creation of pool. new text end new text begin (a) The Minnesota School Employee Insurance Pool is new text end 2.16 new text begin created as a public corporation that is governed by and subject to the provisions of chapter new text end 2.17 new text begin 317A, except as otherwise provided in this section. As provided in section new text end new text begin , the new text end 2.18 new text begin state is not liable for obligations of this public corporation. new text end 2.19     new text begin (b) The pool shall create and administer the Minnesota School Employee Insurance new text end 2.20 new text begin Plan as described in this section. new text end 2.21     new text begin (c) Insurance plans and offerings must be effective no later than July 1, 2010. new text end 2.22     new text begin Subd. 3. new text end new text begin Board of directors. new text end new text begin (a) The Minnesota School Employee Insurance Pool new text end 2.23 new text begin shall be governed by a board of directors that consists of: new text end 2.24     new text begin (1) seven members representing statewide affiliates of exclusive representatives of new text end 2.25 new text begin eligible employees, appointed by exclusive representatives, as provided in paragraph new text end 2.26 new text begin (b); and new text end 2.27     new text begin (2) seven members representing eligible employers, appointed by the Minnesota new text end 2.28 new text begin School Boards Association. new text end 2.29     new text begin (b) The seven members of the board who represent statewide affiliates of exclusive new text end 2.30 new text begin representatives of eligible employees are appointed as follows: four members appointed new text end 2.31 new text begin by Education Minnesota and one member each appointed by the Service Employees new text end 2.32 new text begin International Union, the Minnesota School Employees Association, and the American new text end 2.33 new text begin Federation of State, County, and Municipal Employees. new text end 2.34     new text begin (c) Appointing authorities must make their initial appointments no later than August new text end 2.35 new text begin 1, 2008, by filing a notice of the appointment with the executive director of the Legislative new text end 2.36 new text begin Coordinating Commission. Notices of subsequent appointments must be filed with the new text end 3.1 new text begin board. An entity entitled to appoint a board member may replace the board member at new text end 3.2 new text begin any time. new text end 3.3     new text begin (d) Board members are eligible for compensation and expense reimbursement from new text end 3.4 new text begin the pool under section new text end new text begin 15.0575, subdivision 3 new text end new text begin . new text end 3.5     new text begin (e) The board must arrange for one or more methods of dispute resolution so as new text end 3.6 new text begin to minimize the likelihood of deadlocks. new text end 3.7     new text begin (f) The board shall establish governance requirements, which may include staggered new text end 3.8 new text begin terms, term limits, quorum, a plan of operation, and audit provisions. new text end 3.9     new text begin Subd. 4. new text end new text begin Design and nature of plan. new text end new text begin (a) Health coverage offered through the new text end 3.10 new text begin Minnesota School Employee Insurance Pool shall be made available by the pool to all new text end 3.11 new text begin eligible employees of eligible employers, as defined in subdivision 1. new text end 3.12     new text begin (b) If an eligible employer provides health coverage or money to purchase health new text end 3.13 new text begin coverage to eligible employees, the coverage must be provided or purchased only through new text end 3.14 new text begin the health plans offered by the pool. new text end 3.15     new text begin (c) Nothing in this section affects the right of each eligible employer to determine, new text end 3.16 new text begin through collective bargaining under the Public Employment Labor Relations Act: new text end 3.17     new text begin (1) the employer's eligibility requirements regarding the terms and conditions under new text end 3.18 new text begin which employees, dependents, retirees, and other persons are eligible for health coverage new text end 3.19 new text begin through the employer; new text end 3.20     new text begin (2) how much of the premium charged for the health coverage will be paid by the new text end 3.21 new text begin employer and how much will be paid by the eligible person; and new text end 3.22     new text begin (3) which health plans offered by the pool will be made available by the eligible new text end 3.23 new text begin employer. new text end 3.24     new text begin (d) The pool must initially offer at least six health plans. One plan must provide new text end 3.25 new text begin coverage without a deductible and without other enrollee cost-sharing other than new text end 3.26 new text begin reasonable co-payments for nonpreventive care. One plan must be a high-deductible new text end 3.27 new text begin health plan that qualifies under federal law for use with a health savings account. The new text end 3.28 new text begin other four plans must have levels of enrollee cost-sharing that are between the two plans new text end 3.29 new text begin just described. The pool may establish more than one tier of premium rates for any new text end 3.30 new text begin specific plan. Plans and premium rates may vary across geographic regions established by new text end 3.31 new text begin the pool. Any health plan purchased through the pool must comply with all applicable new text end 3.32 new text begin insurance laws, and must provide the optimal combination of coverage, cost, choice, and new text end 3.33 new text begin stability in the judgment of the pool. The pool shall investigate the feasibility of offering new text end 3.34 new text begin coverage through more than one health plan company. new text end 3.35     new text begin (e) The pool must offer only health plans that are fully insured through a health new text end 3.36 new text begin carrier, as defined in section 62A.011, subdivision 2, licensed in this state. new text end 4.1     new text begin (f) Any health plan offered through the pool must include disease management and new text end 4.2 new text begin consumer education, including wellness programs and measures encouraging the wise use new text end 4.3 new text begin of health coverage, to the extent determined to be appropriate by the pool. new text end 4.4     new text begin (g) Upon request by the pool, entities that are providing or have provided coverage new text end 4.5 new text begin to employees of eligible employers within two years before the effective date of this new text end 4.6 new text begin section, shall provide to the pool at no charge nonidentifiable aggregate claims data for new text end 4.7 new text begin that coverage. The information must include data relating to employee group benefit sets, new text end 4.8 new text begin demographics, and claims experience. Notwithstanding section 13.203, Minnesota service new text end 4.9 new text begin cooperatives must also comply with this paragraph. new text end 4.10     new text begin (h) Effective July 1, 2010, a contract entered into between an eligible employer and new text end 4.11 new text begin an eligible employee or the exclusive representative of an eligible employee may not new text end 4.12 new text begin contain provisions that establish cash payment in lieu of health coverage to an eligible new text end 4.13 new text begin employee, unless the employee has been receiving a cash-in-lieu payment on or before new text end 4.14 new text begin June 30, 2010. Nothing in this section prevents an eligible employee who otherwise new text end 4.15 new text begin qualifies for payment of cash in lieu of insurance on June 30, 2009, from continuing new text end 4.16 new text begin to receive the payment. new text end 4.17     new text begin (i) All premiums paid for health coverage provided through the pool must be used new text end 4.18 new text begin by the pool solely for premiums for health plan coverage provided through the pool, the new text end 4.19 new text begin cost of operation of the pool, and the benefit of eligible employees and eligible employers new text end 4.20 new text begin in connection with the health coverage offered through the pool. new text end 4.21     new text begin (j) Notwithstanding paragraph (d), the pool and the commissioner of finance may new text end 4.22 new text begin enter into a mutually beneficial agreement whereby the pool's health plans would be new text end 4.23 new text begin coordinated with the plan offered by the commissioner under section 43A.23 or 43A.316, new text end 4.24 new text begin but would not be merged with either of those plans. The agreement may contain provisions new text end 4.25 new text begin that vary from those of paragraph (d) to conform to the benefit sets or other terms under new text end 4.26 new text begin section 43A.23 or 43A.316. The agreement may also provide that the pool and the new text end 4.27 new text begin commissioner will jointly solicit bids for use of provider networks, claims processing, and new text end 4.28 new text begin other administrative services. If an agreement is entered into, persons covered through the new text end 4.29 new text begin pool must continue to be rated separately for premium purposes from persons covered new text end 4.30 new text begin under section 43A.23 or 43A.316. An agreement under this paragraph must not result in new text end 4.31 new text begin the pool becoming self-insured or in the pool sharing risk with a plan offered by the new text end 4.32 new text begin commissioner. The pool must continue to transfer its risk to a health plan company new text end 4.33 new text begin authorized to do business in this state. new text end 4.34     new text begin Subd. 5. new text end new text begin Report. new text end new text begin The pool shall submit a written report to the legislature by January new text end 4.35 new text begin 15, 2010, in compliance with sections 3.195 and 3.197, on a final design for the pool that new text end 4.36 new text begin complies with subdivision 4 and on governance requirements for the board, which may new text end 5.1 new text begin include staggered terms, term limits, quorum, a plan of operation, and audit provisions. new text end 5.2 new text begin The report must include any legislative changes necessary to ensure conformance with new text end 5.3 new text begin all applicable insurance and other laws. new text end 5.4     new text begin Subd. 6. new text end new text begin Periodic evaluation. new text end new text begin (a) Beginning December 15, 2010, and for the next new text end 5.5 new text begin two years, the pool must submit an annual written report to the legislature, in compliance new text end 5.6 new text begin with sections new text end new text begin and new text end new text begin , summarizing and evaluating the performance of the pool new text end 5.7 new text begin during the previous fiscal year of operation. new text end 5.8     new text begin (b) Beginning in 2013 and in each odd-numbered year thereafter, the pool must new text end 5.9 new text begin submit to the legislature a biennial written report summarizing and evaluating the new text end 5.10 new text begin performance of the pool during the preceding two fiscal years. new text end 5.11     new text begin Subd. 7. new text end new text begin Applicability of data practices laws. new text end new text begin The pool and its board are new text end 5.12 new text begin government entities that are subject to chapter 13. new text end 5.13    Sec. 3. new text begin INITIAL MEETING; MINNESOTA SCHOOL EMPLOYEE new text end 5.14 new text begin INSURANCE POOL. new text end 5.15     new text begin The executive director of the Legislative Coordinating Commission, or the executive new text end 5.16 new text begin director's designee, shall convene the first meeting of the board of directors of the new text end 5.17 new text begin Minnesota School Employee Insurance Pool no later than 30 days after all board members new text end 5.18 new text begin have been appointed. The board shall elect a chair or cochairs from among its members new text end 5.19 new text begin at its first meeting. new text end 5.20    Sec. 4. new text begin APPROPRIATION. new text end 5.21     new text begin $4,000,000 is appropriated for fiscal year 2009 from the general fund to the new text end 5.22 new text begin commissioner of finance to be disbursed as a loan for start-up costs to the Minnesota new text end 5.23 new text begin School Employee Insurance Pool. The pool must repay the loan to the general fund in ten new text end 5.24 new text begin equal installments paid at the end of each fiscal year, beginning with the 2011 fiscal year. new text end 5.25 new text begin On July 1, 2008, the commissioner of finance shall cancel $4,000,000 of the balance in the new text end 5.26 new text begin budget reserve account in Minnesota Statutes, section 16A.152, to the general fund. new text end 5.27    Sec. 5. new text begin EFFECTIVE DATE. new text end 5.28     new text begin This act is effective July 1, 2008. new text end