SF 276
1st Unofficial Engrossment - 85th Legislature (2007 - 2008)
Posted on 12/15/2009 12:00 a.m.
KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers
1.1A bill for an act
1.2relating to insurance; creating a statewide health insurance pool for school district
1.3employees; appropriating money;amending Minnesota Statutes 2006, sections
1.462E.02, subdivision 23; 62E.10, subdivision 1; 62E.11, subdivision 5; 297I.05,
1.5subdivision 5; proposing coding for new law in Minnesota Statutes, chapter 62A.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. new text begin [62A.662] SCHOOL EMPLOYEE INSURANCE PLAN.new text end
1.8 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
1.9 new text begin (1) "eligible employee" means a person who is insurance eligible under a collective new text end
1.10new text begin bargaining agreement or under the personnel policy of an eligible employer; and new text end
1.11 new text begin (2) "eligible employer" means a school district as defined in section new text end
new text begin ; a new text end
1.12new text begin service cooperative as defined in section 123A.21; an intermediate district as defined new text end
1.13new text begin in section new text end
new text begin ; a cooperative center for vocational education as defined in section new text end
1.14new text begin ; a regional management information center as defined in section new text end
new text begin ; an new text end
1.15new text begin education unit organized under section new text end
new text begin ; or a charter school organized under section new text end
1.16new text begin 124D.10.new text end
1.17 new text begin Subd. 2.new text end new text begin Creation of board.new text end new text begin (a) The Minnesota School Employee Insurance Board new text end
1.18new text begin is created as a public corporation subject to the provisions of chapter 317A, except as new text end
1.19new text begin otherwise provided in this section. As provided in section new text end
new text begin , the state is not liable new text end
1.20new text begin for obligations of this public corporation.new text end
1.21 new text begin (b) The board shall create and administer the Minnesota school employee insurance new text end
1.22new text begin pool as described in this section.new text end
1.23 new text begin (c) Insurance plans and offerings must be effective July 1, 2009.new text end
1.24 new text begin (d) If the board does not offer coverage by December 15, 2010, the board expires new text end
1.25new text begin and this section expires on that date.new text end
2.1 new text begin Subd. 3.new text end new text begin Board of directors.new text end new text begin (a) The School Employee Insurance Board consists of:new text end
2.2 new text begin (1) seven members representing exclusive representatives of eligible employees, new text end
2.3new text begin appointed by exclusive representatives, as provided in paragraph (b); and new text end
2.4 new text begin (2) seven members representing eligible employers, appointed by the Minnesota new text end
2.5new text begin School Boards Association.new text end
2.6 new text begin (b) The seven members of the board who represent statewide affiliates of exclusive new text end
2.7new text begin representatives of eligible employees are appointed as follows: four members appointed new text end
2.8new text begin by Education Minnesota and one member each appointed by the Service Employees new text end
2.9new text begin International Union, the Minnesota School Employees Association, and American new text end
2.10new text begin Federation of State, County, and Municipal Employees.new text end
2.11 new text begin (c) Appointing authorities must make their initial appointments no later than August new text end
2.12new text begin 1, 2007, by filing a notice of the appointment with the commissioner of commerce. new text end
2.13new text begin Notices of subsequent appointments must be filed with the board. An entity entitled to new text end
2.14new text begin appoint a board member may replace the board member at any time.new text end
2.15 new text begin (d) Board members are eligible for compensation and expense reimbursement under new text end
2.16new text begin section new text end
new text begin 15.0575, subdivision 3new text end new text begin .new text end
2.17 new text begin (e) The board must arrange for one or more methods of dispute resolution so as new text end
2.18new text begin to minimize the possibility of deadlocks.new text end
2.19 new text begin (f) The board shall establish governance requirements, which may include staggered new text end
2.20new text begin terms, term limits, quorum, a plan of operation, and audit provisions.new text end
2.21 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
2.22new text begin Minnesota school employee insurance pool shall be made available by the board to all new text end
2.23new text begin eligible employees of eligible employers, as defined in subdivision 1.new text end
2.24 new text begin (b) If an eligible employer provides health coverage or money to purchase health new text end
2.25new text begin coverage to eligible employees, the coverage must be provided or purchased only through new text end
2.26new text begin the health plans offered by the board.new text end
2.27 new text begin (c) Nothing in this section affects the right of each eligible employer to determine, new text end
2.28new text begin through collective bargaining under the public employer labor relations act:new text end
2.29 new text begin (1) the employer's eligibility requirements regarding the terms and conditions under new text end
2.30new text begin which employees, dependents, retirees, and other persons are eligible for health coverage new text end
2.31new text begin from the employer;new text end
2.32 new text begin (2) how much of the premium charged for the insurance will be paid by the employer new text end
2.33new text begin and how much will be paid by the eligible person; and new text end
2.34 new text begin (3) which health plan or plans offered by the board will be made available by the new text end
2.35new text begin eligible employer.new text end
3.1 new text begin (d) The board must initially offer at least six health plans. One plan must provide new text end
3.2new text begin coverage without a deductible and without other enrollee cost-sharing other than new text end
3.3new text begin reasonable co-payments for nonpreventive care. One plan must be a high-deductible new text end
3.4new text begin health plan that qualifies under federal law for use with a health savings account. The new text end
3.5new text begin other four plans must have levels of enrollee cost-sharing that are between the two plans new text end
3.6new text begin just described. The board may establish more than one tier of premium rates for any new text end
3.7new text begin specific plan. Plans and premium rates may vary across geographic regions established by new text end
3.8new text begin the board. The health plans must comply with chapters 62A, 62J, 62M, and 62Q, and must new text end
3.9new text begin provide the optimal combination of coverage, cost, choice, and stability in the judgment of new text end
3.10new text begin the board. All health plans offered must be approved by the commissioner of commerce. new text end
3.11new text begin The board shall investigate the feasibility of offering coverage through more than one new text end
3.12new text begin health plan company or other network of health care providers.new text end
3.13 new text begin (e) The board must include claims reserves, stabilization reserves, reinsurance, new text end
3.14new text begin and other features that, in the judgment of the board, will result in long-term stability new text end
3.15new text begin and solvency of the health plans offered.new text end
3.16 new text begin (f) The board may determine whether the health plans should be fully insured new text end
3.17new text begin through a health carrier licensed in this state, self-insured, or a combination of those new text end
3.18new text begin two alternatives.new text end
3.19 new text begin (g) The health plans must include disease management and consumer education, new text end
3.20new text begin including wellness programs and measures encouraging the wise use of health coverage, new text end
3.21new text begin to the extent determined to be appropriate by the board.new text end
3.22 new text begin (h) Upon request of the board, health plans that are providing or have provided new text end
3.23new text begin coverage to employees of eligible employers within two years before the effective date of new text end
3.24new text begin this section, shall provide to the board at no charge nonidentifiable aggregate claims data new text end
3.25new text begin for that coverage. The information must include data relating to employee group benefit new text end
3.26new text begin sets, demographics, and claims experience. Notwithstanding section 13.203, Minnesota new text end
3.27new text begin service cooperatives must also comply with this paragraph.new text end
3.28 new text begin (i) Effective July 1, 2009, a contract entered into between an eligible employer and new text end
3.29new text begin an eligible employee or the exclusive representative of an eligible employee may not new text end
3.30new text begin contain provisions that establish cash payment in lieu of health insurance to an eligible new text end
3.31new text begin employee if the employee is not receiving the payment on or before June 30, 2009. new text end
3.32new text begin Nothing in this section prevents an eligible employee who otherwise qualifies for payment new text end
3.33new text begin of cash in lieu of insurance on June 30, 2009, from continuing to receive this payment.new text end
3.34 new text begin (j) All premiums paid for health coverage provided by the board must be used by the new text end
3.35new text begin board solely for the cost of the operation of the board and the benefit of eligible employees new text end
3.36new text begin and eligible employers in connection with the health coverage offered by the board.new text end
4.1 new text begin Subd. 5.new text end new text begin MCHA membership and assessments.new text end new text begin The board is a contributing new text end
4.2new text begin member of the Minnesota Comprehensive Health Association and must pay assessments new text end
4.3new text begin made by the association on its premium revenues, as provided in section new text end
new text begin , new text end
4.4new text begin subdivision 5, paragraph (b).new text end
4.5 new text begin Subd. 6.new text end new text begin Report.new text end new text begin The board shall report to the legislature by January 15, 2009, on a new text end
4.6new text begin final design for the pool that complies with subdivision 4 and on governance requirements new text end
4.7new text begin for the board, which may include staggered terms, term limits, quorum, and a plan of new text end
4.8new text begin operation and audit provisions. The report must include any legislative changes necessary new text end
4.9new text begin to ensure conformance with chapters 62A, 62J, 62M, and 62Q.new text end
4.10 new text begin Subd. 7.new text end new text begin Progress dependent upon funding.new text end new text begin The board shall carry out its new text end
4.11new text begin obligations to the extent permitted by financial and other resources available to the board new text end
4.12new text begin for that purpose.new text end
4.13 new text begin Subd. 8.new text end new text begin Periodic evaluation.new text end new text begin (a) Beginning January 15, 2011, and for the next two new text end
4.14new text begin years, the board must submit an annual report to the commissioner of commerce and the new text end
4.15new text begin legislature, in compliance with sections new text end
new text begin and new text end
new text begin , summarizing and evaluating the new text end
4.16new text begin performance of the pool during the previous year of operation.new text end
4.17 new text begin (b) Beginning in 2013 and in each odd-numbered year thereafter, the board must new text end
4.18new text begin submit to the legislature a biennial report summarizing and evaluating the performance of new text end
4.19new text begin the pool during the preceding two fiscal years.new text end
4.20 Sec. 2. Minnesota Statutes 2006, section 62E.02, subdivision 23, is amended to read:
4.21 Subd. 23. Contributing member. "Contributing member" means those companies
4.22regulated under chapter 62A and offering, selling, issuing, or renewing policies or
4.23contracts of accident and health insurance; health maintenance organizations regulated
4.24under chapter 62D; nonprofit health service plan corporations regulated under chapter
4.2562C; community integrated service networks regulated under chapter 62N; fraternal
4.26benefit societies regulated under chapter 64B; the Minnesota employees insurance
4.27program established in section
43A.317, effective July 1, 1993; and joint self-insurance
4.28plans regulated under chapter 62Hnew text begin ; and the Minnesota School Employee Insurance Board new text end
4.29new text begin created under section 62A.662new text end . For the purposes of determining liability of contributing
4.30members pursuant to section
62E.11 payments received from or on behalf of Minnesota
4.31residents for coverage by a health maintenance organization or new text begin a new text end community integrated
4.32service networknew text begin , or the Minnesota School Employee Insurance Boardnew text end shall be considered
4.33to be accident and health insurance premiums.
4.34 Sec. 3. Minnesota Statutes 2006, section 62E.10, subdivision 1, is amended to read:
5.1 Subdivision 1. Creation; tax exemption. There is established a Comprehensive
5.2Health Association to promote the public health and welfare of the state of Minnesota with
5.3membership consisting of all insurers; self-insurers; fraternals; joint self-insurance plans
5.4regulated under chapter 62H; the Minnesota employees insurance program established
5.5in section
43A.317, effective July 1, 1993; new text begin the Minnesota School Employee Insurance new text end
5.6new text begin Board created under section new text end
new text begin ; new text end health maintenance organizations; and community
5.7integrated service networks licensed or authorized to do business in this state. The
5.8Comprehensive Health Association is exempt from the taxes imposed under chapter
5.9297I and any other laws of this state and all property owned by the association is exempt
5.10from taxation.
5.11 Sec. 4. Minnesota Statutes 2006, section 62E.11, subdivision 5, is amended to read:
5.12 Subd. 5. Allocation of losses. new text begin (a) new text end Each contributing member of the association shall
5.13share the losses due to claims expenses of the comprehensive health insurance plan for
5.14plans issued or approved for issuance by the association, and shall share in the operating
5.15and administrative expenses incurred or estimated to be incurred by the association
5.16incident to the conduct of its affairs. Claims expenses of the state plan which exceed
5.17the premium payments allocated to the payment of benefits shall be the liability of the
5.18contributing members. Contributing members shall share in the claims expense of the
5.19state plan and operating and administrative expenses of the association in an amount equal
5.20to the ratio of the contributing member's total accident and health insurance premium,
5.21received from or on behalf of Minnesota residents as divided by the total accident and
5.22health insurance premium, received by all contributing members from or on behalf of
5.23Minnesota residents, as determined by the commissioner. Payments made by the state
5.24to a contributing member for medical assistance, MinnesotaCare, or general assistance
5.25medical care services according to chapters 256, 256B, and 256D shall be excluded when
5.26determining a contributing member's total premium.
5.27 new text begin (b) In making the allocation of losses provided in paragraph (a), the association's new text end
5.28new text begin assessment against the Minnesota School Employee Insurance Board must equal the new text end
5.29new text begin product of: (1) the percentage of premiums assessed against other association members; new text end
5.30new text begin (2) .3885; and (3) premiums received by the Minnesota School Employee Insurance Board. new text end
5.31new text begin For purposes of this calculation, premiums of the board used must be net of rate credits and new text end
5.32new text begin retroactive rate refunds on the same basis as the premiums of other association members.new text end
5.33 Sec. 5. Minnesota Statutes 2006, section 297I.05, subdivision 5, is amended to read:
6.1 Subd. 5. Health maintenance organizations, nonprofit health service plan
6.2corporations, and community integrated service networksnew text begin , and the Minnesota new text end
6.3new text begin School Employee Insurance Boardnew text end . (a) A tax is imposed on health maintenance
6.4organizations, community integrated service networks, and nonprofit health care service
6.5plan corporations. The rate of tax is equal to one percent of gross premiums less return
6.6premiums on all direct business received by the organization, network, or corporation or
6.7its agents in Minnesota, in cash or otherwise, in the calendar year.
6.8 (b) new text begin A tax is imposed on the Minnesota School Employee Insurance Board under new text end
6.9new text begin section new text end
new text begin . The rate of tax is equal to .36 percent of gross premiums less return new text end
6.10new text begin premiums received in the calendar year.new text end
6.11 new text begin (c) new text end The commissioner shall deposit all revenues, including penalties and interest,
6.12collected under this chapter from health maintenance organizations, community integrated
6.13service networks, and nonprofit health service plan corporationsnew text begin , and the Minnesota School new text end
6.14new text begin Employee Insurance Boardnew text end in the health care access fund. Refunds of overpayments of
6.15tax imposed by this subdivision must be paid from the health care access fund. There is
6.16annually appropriated from the health care access fund to the commissioner the amount
6.17necessary to make any refunds of the tax imposed under this subdivision.
6.18 Sec. 6. new text begin APPROPRIATION.new text end
6.19 new text begin $4,000,000 is appropriated in fiscal year 2008 from the general fund to the new text end
6.20new text begin commissioner of commerce as a loan for start-up costs to the Minnesota School Employee new text end
6.21new text begin Insurance Board. The Minnesota School Employee Insurance Board must repay the loan new text end
6.22new text begin to the general fund in ten equal installments paid at the end of each fiscal year, beginning new text end
6.23new text begin with the 2010 fiscal year.new text end
6.24 Sec. 7. new text begin EFFECTIVE DATE.new text end
6.25 new text begin This act is effective July 1, 2007, except that sections 4 and 5 are effective July new text end
6.26new text begin 1, 2009.new text end