SF 915

CCR--SF0915A - 86th Legislature (2009 - 2010)

Posted on 01/15/2013 08:28 p.m.

1.1CONFERENCE COMMITTEE REPORT ON S.F. No. 915 1.2A bill for an act 1.3relating to insurance; requiring school districts to obtain employee health 1.4coverage through the public employees insurance program; appropriating money; 1.5amending Minnesota Statutes 2008, sections 43A.316, subdivisions 9, 10, by 1.6adding subdivisions; 62E.02, subdivision 23; 62E.10, subdivision 1; 62E.11, 1.7subdivision 5; 297I.05, subdivision 5; 297I.15, subdivision 3. 1.8February 16, 2010 1.9The Honorable James P. Metzen 1.10President of the Senate 1.11The Honorable Margaret Anderson Kelliher 1.12Speaker of the House of Representatives 1.13We, the undersigned conferees for S.F. No. 915 report that we have agreed upon the 1.14items in dispute and recommend as follows: 1.15That the House recede from its amendments and that S.F. No. 915 be further 1.16amended as follows: 1.17Delete everything after the enacting clause and insert: 1.18    "Section 1. Minnesota Statutes 2008, section 43A.316, is amended by adding a 1.19subdivision to read: 1.20     new text begin Subd. 3a. new text end new text begin Health improvement programs. new text end new text begin The commissioner, with the approval new text end 1.21 new text begin of the school employee insurance committee, is authorized to plan, develop, purchase, new text end 1.22 new text begin administer, and evaluate disease management and other programs, strategies, and new text end 1.23 new text begin incentives to improve the health and health outcomes of members. new text end 1.24    Sec. 2. Minnesota Statutes 2008, section 43A.316, subdivision 9, is amended to read: 1.25    Subd. 9. Insurance trust fund. new text begin (a) new text end The insurance trust fund in the state treasury 1.26consists of deposits of the premiums received from employers participating in the 1.27program and transfers before July 1, 1994, from the excess contributions holding account 1.28established by section 353.65, subdivision 7. All money in the fund is appropriated to 1.29the commissioner to pay insurance premiums, approved claims, refunds, administrative 2.1costs, and other related service costs new text begin , including costs incurred under chapters 62E and new text end 2.2 new text begin 297I in connection with the school employee insurance program new text end . Premiums paid by 2.3employers to the fund are exempt from the taxes imposed by chapter 297I new text begin , except as new text end 2.4 new text begin described in paragraph (b) new text end . The commissioner shall reserve an amount of money to cover 2.5the estimated costs of claims incurred but unpaid. The State Board of Investment shall 2.6invest the money according to section 11A.24. Investment income and losses attributable 2.7to the fund must be credited to the fund. 2.8 new text begin (b) Notwithstanding paragraph (a), premium revenues collected from the school new text end 2.9 new text begin employee insurance program, described in subdivisions 12 and 13, are not exempt from new text end 2.10 new text begin the taxes imposed under section 297I.05, subdivision 15. new text end 2.11    Sec. 3. Minnesota Statutes 2008, section 43A.316, subdivision 10, is amended to read: 2.12    Subd. 10. Exemption. new text begin (a) new text end The public employee insurance program and, where 2.13applicable, the employers participating in it are exempt from chapters 60A, 62A, 62C, 2.1462D, 62E, and 62H, section 471.617, subdivisions 2 and 3, and the bidding requirements 2.15of section 471.6161. 2.16 new text begin (b) Notwithstanding paragraph (a), the school employee insurance program, new text end 2.17 new text begin described in subdivisions 12 and 13, is a contributing member of the Minnesota new text end 2.18 new text begin Comprehensive Health Association and must pay assessments made by the association on new text end 2.19 new text begin the premium revenue attributed to the school employee insurance program, prorated as new text end 2.20 new text begin provided in section 62E.11, subdivision 5, paragraph (b). new text end 2.21    Sec. 4. Minnesota Statutes 2008, section 43A.316, is amended by adding a subdivision 2.22to read: 2.23     new text begin Subd. 11. new text end new text begin Definitions. new text end new text begin (a) For purposes of subdivisions 11 to 16, the terms defined new text end 2.24 new text begin in this subdivision have the meanings given. new text end 2.25 new text begin (b) "Eligible employee" means an employee of a school employer, a dependent of new text end 2.26 new text begin such an employee, a retiree, or other person, who is eligible for health insurance coverage new text end 2.27 new text begin under the school employer's plan. new text end 2.28 new text begin (c) "School Employee Insurance Committee" means the committee created in new text end 2.29 new text begin subdivision 14. new text end 2.30 new text begin (d) "School employer" means a school district as defined in section 120A.05, service new text end 2.31 new text begin cooperative as defined in section 123A.21, intermediate district as defined in section new text end 2.32 new text begin 136D.01, Cooperative Center for Vocational Education as defined in section 123A.22, new text end 2.33 new text begin regional management information center as defined in section 123A.23, or an education new text end 2.34 new text begin unit organized under a joint powers agreement under section 471.59. new text end 3.1    Sec. 5. Minnesota Statutes 2008, section 43A.316, is amended by adding a subdivision 3.2to read: 3.3     new text begin Subd. 12. new text end new text begin School employee insurance program. new text end new text begin The commissioner shall develop new text end 3.4 new text begin and administer within the public employees insurance program a separately rated and new text end 3.5 new text begin administered program for eligible employees of school employers, to be called the new text end 3.6 new text begin school employee insurance program. The initial offerings shall be the PEIP Advantage, new text end 3.7 new text begin Advantage Value, and Advantage HSA plans offered by the public employee insurance new text end 3.8 new text begin program. Health coverage offered through the school employee insurance program shall new text end 3.9 new text begin be made available beginning January 1, 2012. new text end 3.10    Sec. 6. Minnesota Statutes 2008, section 43A.316, is amended by adding a subdivision 3.11to read: 3.12     new text begin Subd. 13. new text end new text begin Enrollment; school employee insurance program. new text end new text begin (a) A school new text end 3.13 new text begin employer that provides health coverage to eligible employees or contributes money to pay new text end 3.14 new text begin for all or part of the cost of health coverage for eligible employees, must purchase such new text end 3.15 new text begin coverage through the school employee insurance program under subdivision 12. School new text end 3.16 new text begin employers described in paragraph (b) may opt out as described in paragraphs (b) to (e). new text end 3.17 new text begin (b) The school board of a school employer and each exclusive representative of new text end 3.18 new text begin employees of a school employer which, on July 1, 2010, was individually self-insured new text end 3.19 new text begin shall jointly determine whether the employees the exclusive representative represents will new text end 3.20 new text begin opt out of the school employee insurance program, in the same manner described in new text end 3.21 new text begin subdivision 5, paragraph (b). Paragraphs (c), (d), and (e) below apply only to school new text end 3.22 new text begin employees of the school employers described in this paragraph. new text end 3.23 new text begin (c) School employees not represented by an exclusive representative may enter new text end 3.24 new text begin the school employee insurance program in the same manner described in subdivision 5, new text end 3.25 new text begin paragraph (c). new text end 3.26 new text begin (d) School employees who do not enter the program upon first becoming eligible new text end 3.27 new text begin for participation are ineligible to participate for four years and must be pooled and rated new text end 3.28 new text begin separately from the other enrollees in the school employee insurance program for the new text end 3.29 new text begin first four years after entering the program. This paragraph does not apply to a school new text end 3.30 new text begin employee upon later becoming a member of a school employee group that has not new text end 3.31 new text begin declined participation. new text end 3.32 new text begin (e) The decision of a school board of a school employer and an exclusive new text end 3.33 new text begin representative of school employees or, in the case of unorganized employees, the decision new text end 3.34 new text begin of the school board of a school employer, to not opt-out of entry into the school employee new text end 3.35 new text begin insurance program is irrevocable and applies to all future years. new text end 4.1    Sec. 7. Minnesota Statutes 2008, section 43A.316, is amended by adding a subdivision 4.2to read: 4.3     new text begin Subd. 14. new text end new text begin School Employee Insurance Committee. new text end new text begin (a) Notwithstanding any other new text end 4.4 new text begin provision of law, all plan design decisions, including all pilot or demonstration programs new text end 4.5 new text begin in which school employees participate, must first be developed by the School Employee new text end 4.6 new text begin Insurance Committee in consultation with the commissioner or the commissioner's new text end 4.7 new text begin designee and other consultants as the committee sees fit. This paragraph does not apply to new text end 4.8 new text begin the initial offerings specified in subdivision 12. new text end 4.9 new text begin (b) The committee must be composed of 14 members who represent school new text end 4.10 new text begin district employees and employers in equal number. The employee representatives shall new text end 4.11 new text begin be appointed as follows: four shall be appointed by Education Minnesota, one shall be new text end 4.12 new text begin appointed by the Service Employees International Union, one shall be appointed by the new text end 4.13 new text begin American Federation of State, County, and Municipal Employees, and one shall be new text end 4.14 new text begin appointed by the Minnesota School Employees Association. The seven school employer new text end 4.15 new text begin representatives who serve on the School Employee Insurance Committee must be new text end 4.16 new text begin appointed by the Minnesota School Boards Association, and geographic representation new text end 4.17 new text begin must be taken into consideration when making the appointments. Members of the new text end 4.18 new text begin committee shall serve at the will of the appointing organization. The committee will new text end 4.19 new text begin select a chair from its membership. new text end 4.20 new text begin (c) The School Employee Insurance Committee members are eligible for new text end 4.21 new text begin compensation and expense reimbursement under section 15.0575, subdivision 3. In new text end 4.22 new text begin addition, if actual salary is lost by a committee member, or if a cost is charged by an new text end 4.23 new text begin employer of a committee member for time missed while performing the duties of a new text end 4.24 new text begin committee member, then the commissioner shall reimburse the member for the lost salary new text end 4.25 new text begin or the cost from funds appropriated for the operations of the committee. new text end 4.26 new text begin (d) The commissioner shall provide the necessary meeting space and staff support new text end 4.27 new text begin for the committee. new text end 4.28    Sec. 8. Minnesota Statutes 2008, section 43A.316, is amended by adding a subdivision 4.29to read: 4.30     new text begin Subd. 15. new text end new text begin Reinsurance. new text end new text begin The commissioner shall, on behalf of the program, new text end 4.31 new text begin participate in an insured or self-insured reinsurance pool for the first three years of the new text end 4.32 new text begin program and may continue to participate in a reinsurance pool after the first three years. new text end 4.33    Sec. 9. Minnesota Statutes 2008, section 43A.316, is amended by adding a subdivision 4.34to read: 5.1     new text begin Subd. 16. new text end new text begin Nonidentifiable aggregate claims data from past coverage. new text end new text begin Upon new text end 5.2 new text begin request by the commissioner, entities that are providing or have provided coverage to new text end 5.3 new text begin eligible employees of school employers within two years before the effective date of new text end 5.4 new text begin this section, shall provide to the commissioner at no charge nonidentifiable aggregate new text end 5.5 new text begin claims data for that coverage. The information must include data relating to employee new text end 5.6 new text begin group benefit sets, demographics, and claims experience. Notwithstanding section 13.203, new text end 5.7 new text begin Minnesota service cooperatives must comply with this subdivision. new text end 5.8    Sec. 10. Minnesota Statutes 2008, section 62E.02, subdivision 23, is amended to read: 5.9    Subd. 23. Contributing member. "Contributing member" means those companies 5.10regulated under chapter 62A and offering, selling, issuing, or renewing policies or 5.11contracts of accident and health insurance; health maintenance organizations regulated 5.12under chapter 62D; nonprofit health service plan corporations regulated under chapter 5.1362C; community integrated service networks regulated under chapter 62N; fraternal 5.14benefit societies regulated under chapter 64B; the Minnesota employees insurance 5.15program established in section 43A.317, effective July 1, 1993; and joint self-insurance 5.16plans regulated under chapter 62H new text begin ; and the school employee insurance program created new text end 5.17 new text begin under section 43A.316 new text end . For the purposes of determining liability of contributing members 5.18pursuant to section 62E.11 payments received from or on behalf of Minnesota residents 5.19for coverage by a health maintenance organization or new text begin , a new text end community integrated service 5.20network new text begin , or the school employee insurance program new text end shall be considered to be accident 5.21and health insurance premiums. 5.22    Sec. 11. Minnesota Statutes 2008, section 62E.10, subdivision 1, is amended to read: 5.23    Subdivision 1. Creation new text begin and membership new text end ; tax exemption. new text begin (a) new text end There is established 5.24a Comprehensive Health Association to promote the public health and welfare of the state 5.25of Minnesota with membership consisting of all insurers; self-insurers; fraternals; joint 5.26self-insurance plans regulated under chapter 62H; the Minnesota employees insurance 5.27program established in section 43A.317, effective July 1, 1993; new text begin the school employee new text end 5.28 new text begin insurance program created under section new text end new text begin , subdivision 12; new text end health maintenance 5.29organizations; and community integrated service networks licensed or authorized to do 5.30business in this state. 5.31 new text begin (b) new text end The Comprehensive Health Association is exempt from the taxes imposed under 5.32chapter 297I and any other laws of this state and all property owned by the association 5.33is exempt from taxation. 6.1    Sec. 12. Minnesota Statutes 2008, section 62E.11, subdivision 5, is amended to read: 6.2    Subd. 5. Allocation of losses. new text begin (a) new text end Each contributing member of the association shall 6.3share the losses due to claims expenses of the comprehensive health insurance plan for 6.4plans issued or approved for issuance by the association, and shall share in the operating 6.5and administrative expenses incurred or estimated to be incurred by the association 6.6incident to the conduct of its affairs. Claims expenses of the state plan which exceed 6.7the premium payments allocated to the payment of benefits shall be the liability of the 6.8contributing members. Contributing members shall share in the claims expense of the 6.9state plan and operating and administrative expenses of the association in an amount equal 6.10to the ratio of the contributing member's total accident and health insurance premium, 6.11received from or on behalf of Minnesota residents as divided by the total accident and 6.12health insurance premium, received by all contributing members from or on behalf of 6.13Minnesota residents, as determined by the commissioner. Payments made by the state 6.14to a contributing member for medical assistance, MinnesotaCare, or general assistance 6.15medical care services according to chapters 256, 256B, and 256D shall be excluded when 6.16determining a contributing member's total premium. 6.17     new text begin (b) In making the allocation of losses provided in paragraph (a) in each future year, new text end 6.18 new text begin the association's assessment against the school employee insurance program must be new text end 6.19 new text begin based on premiums received by the school employee insurance program in that future year new text end 6.20 new text begin from the school employers that, on May 1, 2010, were receiving health care coverage new text end 6.21 new text begin from a contributing member of the association. The association shall assess the premiums new text end 6.22 new text begin paid in each future year by those employers at the same rate as premiums paid to other new text end 6.23 new text begin members of the association. For purposes of this calculation, premiums of the program new text end 6.24 new text begin used must be net of rate credits and retroactive rate refunds on the same basis as the new text end 6.25 new text begin premiums of other association members. new text end 6.26    Sec. 13. Minnesota Statutes 2008, section 297I.05, is amended by adding a subdivision 6.27to read: 6.28     new text begin Subd. 15. new text end new text begin School employee insurance program. new text end new text begin A tax is imposed on the school new text end 6.29 new text begin employee insurance program created under section 43A.316, subdivision 12. The tax must new text end 6.30 new text begin be assessed upon gross premiums less return premiums received by the school employee new text end 6.31 new text begin insurance program in that calendar year from a school employer that, on May 1, 2010, new text end 6.32 new text begin was purchasing health care coverage from an entity that is required to pay tax under new text end 6.33 new text begin subdivision 1, 3, 4, or 5. The commissioner shall assess the premiums paid in each year to new text end 6.34 new text begin the school employee insurance program by those employers at the same rate as premiums new text end 6.35 new text begin paid by the entities under subdivision 1, 3, 4, or 5 as applicable to the school employer. new text end 7.1    Sec. 14. Minnesota Statutes 2008, section 297I.15, subdivision 3, is amended to read: 7.2    Subd. 3. Public employees insurance program. Premiums paid to the public 7.3employees insurance program under section 43A.316 are exempt from the taxes imposed 7.4under this chapter new text begin , except for premiums paid to the school employee insurance program as new text end 7.5 new text begin provided in section 297I.05, subdivision 15 new text end . 7.6    Sec. 15. new text begin APPOINTMENTS TO SCHOOL EMPLOYEE INSURANCE new text end 7.7 new text begin COMMITTEE; FIRST MEETING. new text end 7.8 new text begin The appointing authorities under Minnesota Statutes, section 43A.316, subdivision new text end 7.9 new text begin 14, shall complete their initial appointments no later than August 1, 2010. The new text end 7.10 new text begin commissioner of finance, or the commissioner's designee, shall convene the first meeting new text end 7.11 new text begin of the school employee insurance committee within 30 days after determining that (1) new text end 7.12 new text begin an amendment or change to the coverage offered under Minnesota Statutes, section new text end 7.13 new text begin 43A.316, subdivision 12, is necessary; or (2) advice from the committee concerning the new text end 7.14 new text begin administration of the coverage would assist the commissioner. new text end 7.15    Sec. 16. new text begin START-UP FUNDING; ADMINISTRATION OF ONGOING new text end 7.16 new text begin REVENUES AND EXPENSES. new text end 7.17 new text begin (a) The commissioner of Minnesota Management and Budget shall use funds new text end 7.18 new text begin available in the insurance trust fund under Minnesota Statutes, section 43A.316, new text end 7.19 new text begin subdivision 9, in the form of temporary funding to pay for the administrative start-up new text end 7.20 new text begin costs necessary under this act. In addition to the amounts of temporary funding, the new text end 7.21 new text begin commissioner shall determine the amount of interest lost to the insurance trust fund as a new text end 7.22 new text begin result of the temporary funding. new text end 7.23 new text begin (b) The commissioner of Minnesota Management and Budget shall impose an new text end 7.24 new text begin enrollment fee upon the premium charged for the first three months of coverage under the new text end 7.25 new text begin school employee insurance program created in this act sufficient to repay to the insurance new text end 7.26 new text begin trust fund the loans provided to cover the start-up costs incurred by the commissioner new text end 7.27 new text begin under paragraph (a), plus foregone interest to the insurance trust fund, as determined new text end 7.28 new text begin under paragraph (a). The commissioner shall deposit the enrollment fees in the insurance new text end 7.29 new text begin trust fund. new text end 7.30 new text begin (c) All costs incurred and revenue received by the commissioner of Minnesota new text end 7.31 new text begin Management and Budget under this act in addition to those dealt with in paragraphs (a) new text end 7.32 new text begin and (b), shall on an ongoing basis be deposited into and paid out of the insurance trust fund new text end 7.33 new text begin as provided in Minnesota Statutes, section 43A.316, subdivision 9, as amended in this act. new text end 8.1    Sec. 17. new text begin EFFECTIVE DATE. new text end 8.2 new text begin Sections 1 to 6 and 8 to 12 are effective for coverage to begin January 1, 2012. new text end 8.3 new text begin Sections 7 and 15 are effective August 1, 2010. new text end " 8.4Delete the title and insert: 8.5"A bill for an act 8.6relating to insurance; requiring school districts to obtain employee health 8.7coverage through the public employees insurance program; imposing a gross 8.8premiums tax on the program; imposing an enrollment fee;amending Minnesota 8.9Statutes 2008, sections 43A.316, subdivisions 9, 10, by adding subdivisions; 8.1062E.02, subdivision 23; 62E.10, subdivision 1; 62E.11, subdivision 5; 297I.05, 8.11by adding a subdivision; 297I.15, subdivision 3." We request the adoption of this report and repassage of the bill.Senate Conferees: (Signed) D. Scott Dibble, Mary Olson, Julie Rosen, Tony Lourey, Gary KublyHouse Conferees: (Signed) Larry Hosch, Tom Anzelc, Sandra Peterson, Lyndon Carlson, Gregory Davids 9.1 We request the adoption of this report and repassage of the bill. 9.2 Senate Conferees:(Signed) 9.3 ..... ..... 9.4 D. Scott Dibble Mary Olson 9.5 ..... ..... 9.6 Julie Rosen Tony Lourey 9.7 ..... 9.8 Gary Kubly 9.9 House Conferees:(Signed) 9.10 ..... ..... 9.11 Larry Hosch Tom Anzelc 9.12 ..... ..... 9.13 Sandra Peterson Lyndon Carlson 9.14 ..... 9.15 Gregory Davids