SF 2668

Introduction - 94th Legislature (2025 - 2026)

Posted on 06/18/2025 08:21 a.m.

A bill for an act
relating to state government; adding eligibility for certain spouses of retired state
employees under the group insurance program; amending Minnesota Statutes 2024,
section 43A.27, subdivision 3.

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

Section 1.

Minnesota Statutes 2024, section 43A.27, subdivision 3, is amended to read:

Subd. 3.

Retired employees.

(a) A person may elect to purchase at personal expense
individual and dependent hospital, medical, and dental coverages if the person is:

(1) a retired employee of the state or an organization listed in subdivision 2 or section
43A.24, subdivision 2, who, at separation of service:

(i) is immediately eligible to receive a retirement benefit under chapter 354B or an
annuity under a retirement program sponsored by the state or such organization of the state;

(ii) immediately meets the age and service requirements in section 352.115, subdivision
1; and

(iii) has five years of service or meets the service requirement of the collective bargaining
agreement or plan, whichever is greater; or

(2) a retired employee of the state who is at least 50 years of age and has at least 15
years of state service.

(b) The commissioner shall offer at least one plan which is actuarially equivalent to
those made available through collective bargaining agreements or plans established under
section 43A.18 to employees in positions equivalent to that from which retired.

(c) A spouse of a person eligible under paragraph (a) may purchase the coverage listed
in this subdivision if the spouse was a dependent under the retired employee's coverage at
the time of the retiree's death.

new text begin (d) A spouse of a person eligible under paragraph (a) who is a dependent under the
retired employee's coverage may purchase the coverage listed in this subdivision if the
retired employee loses eligibility for coverage because the retired employee enrolls in
medical assistance under chapter 256B and has a disability that meets the categorical
eligibility requirements of the Supplemental Security Income program.
new text end

deleted text begin (d) deleted text end new text begin (e) new text end Coverages must be coordinated with relevant health insurance benefits provided
through the federally sponsored Medicare program. Until the retired employee reaches age
65, the retired employee and dependents must be pooled in the same group as active
employees for purposes of establishing premiums and coverage for hospital, medical, and
dental insurance. Coverage for retired employees and their dependents may not discriminate
on the basis of evidence of insurability or preexisting conditions unless identical conditions
are imposed on active employees in the group that the employee left. Appointing authorities
shall provide notice to employees no later than the effective date of their retirement of the
right to exercise the option provided in this subdivision. The retired employee must notify
the commissioner or designee of the commissioner within 30 days after the effective date
of the retirement of intent to exercise this option.