HF 1952

as introduced - 89th Legislature (2015 - 2016) Posted on 03/17/2015 11:36am

A bill for an act
relating to health insurance; authorizing the Nonprofit Insurance Trust to
self-insure for purposes of health benefits insurance; amending Minnesota
Statutes 2014, sections 62H.01; 471.617, subdivision 2.

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

Section 1.

Minnesota Statutes 2014, section 62H.01, is amended to read:

62H.01 AUTHORITY TO JOINTLY SELF-INSURE.

new text begin (a) new text end Any two or more employers deleted text begin , excluding the state and its political subdivisions as
described in section 471.617, subdivision 1, deleted text end who are authorized to transact business in
Minnesota may jointly self-insure employee health, dental, short-term disability benefits,
or other benefits permitted under the Employee Retirement Income Security Act of 1974,
United States Code, title 29, sections 1001 et seq. If an employer chooses to jointly
self-insure in accordance with this chapter, the employer must participate in the joint plan
for at least three consecutive years. If an employer terminates participation in the joint
plan before the conclusion of this three-year period, a financial penalty may be assessed
under the joint plan, not to exceed the amount contributed by the employer to the plan's
reserves as determined under Minnesota Rules, part 2765.1200. Joint plans must have
a minimum of 1,000 covered enrollees and meet all conditions and terms of sections
62H.01 to 62H.08. Joint plans covering employers not resident in Minnesota must meet
the requirements of sections 62H.01 to 62H.08 as if the portion of the plan covering
Minnesota resident employees was treated as a separate plan.

new text begin (b) new text end A multiple employer welfare arrangement as defined in United States Code, title
29, section 1002(40)(a), is subject to this chapter to the extent authorized by the Employee
Retirement Income Security Act of 1974, United States Code, title 29, sections 1001 et
seq. The commissioner of commerce may, on behalf of the state, enter into an agreement
with the United States Secretary of Labor for delegation to the state of some or all of the
secretary's enforcement authority with respect to multiple employer welfare arrangements,
as described in United States Code, title 29, section 1136(c).

new text begin (c) The following are not subject to this chapter:
new text end

new text begin (1) the state and its political subdivisions as described in section 471.617,
subdivision 1; and
new text end

new text begin (2) the Nonprofit Insurance Trust incorporated under chapter 317A and its members
which are incorporated under chapter 317A.
new text end

Sec. 2.

Minnesota Statutes 2014, section 471.617, subdivision 2, is amended to read:

Subd. 2.

Jointly.

Any two or more statutory or home rule charter cities,
counties, school districts, or instrumentalities thereof new text begin , and the Nonprofit Insurance Trust
incorporated under chapter 317A and its members incorporated under chapter 317A, new text end
which together have more than 100 employees may jointly self-insure for any employee
health benefits including long-term disability, but not for employee life benefits, subject to
the same requirements as an individual self-insurer under subdivision 1. Self-insurance
pools under this section are subject to section 62L.045. A self-insurance pool established
and operated by one or more service cooperatives governed by section 123A.21 to
provide coverage described in this subdivision qualifies under this subdivision, but the
individual school district members of such a pool shall not be considered to be self-insured
for purposes of section 471.6161, subdivision 8, paragraph (f). The commissioner of
commerce may adopt rules pursuant to chapter 14, providing standards or guidelines for
the operation and administration of self-insurance pools.