HF 2230

as introduced - 89th Legislature (2015 - 2016) Posted on 04/16/2015 01:31pm

A bill for an act
relating to state government; requiring school employees and districts covered
through public employees insurance program to meet certain group insurance
requirements; amending Minnesota Statutes 2014, section 471.6161, subdivision
8.

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

Section 1.

Minnesota Statutes 2014, section 471.6161, subdivision 8, is amended to read:

Subd. 8.

School districts; group health insurance coverage.

(a) Any entity
providing group health insurance coverage to a school district must provide the school
district with school district-specific nonidentifiable aggregate claims records for the most
recent 24 months within 30 days of the request.

(b) School districts shall request proposals for group health insurance coverage as
provided in subdivision 2 from a minimum of three potential sources of coverage. One of
these requests must go to an administrator governed by chapter 43A. Entities referenced
in subdivision 1 must respond to requests for proposals received directly from a school
district. School districts that are self-insured must also follow these provisions, except
as provided in paragraph (f). School districts must make requests for proposals at least
150 days prior to the expiration of the existing contract but not more frequently than once
every 24 months. The request for proposals must include the most recently available
24 months of nonidentifiable aggregate claims data. The request for proposals must be
publicly released at or prior to its release to potential sources of coverage.

(c) School district contracts for group health insurance must not be longer than
two years unless the exclusive representative of the largest employment group and the
school district agree otherwise.

(d) All initial proposals shall be sealed upon receipt until they are all opened no less
than 90 days prior to the plan's renewal date in the presence of up to three representatives
selected by the exclusive representative of the largest group of employees. Section 13.591,
subdivision 3, paragraph (b), applies to data in the proposals. The representatives of
the exclusive representative must maintain the data according to this classification and
are subject to the remedies and penalties under sections 13.08 and 13.09 for a violation
of this requirement.

(e) A school district, in consultation with the same representatives referenced in
paragraph (d), may continue to negotiate with any entity that submitted a proposal under
paragraph (d) in order to reduce costs or improve services under the proposal. Following
the negotiations any entity that submitted an initial proposal may submit a final proposal
incorporating the negotiations, which is due no less than 75 days prior to the plan's
renewal date. All the final proposals submitted must be opened at the same time in the
presence of up to three representatives selected by the exclusive representative of the
largest group of employees. Notwithstanding section 13.591, subdivision 3, paragraph (b),
following the opening of the final proposals, all the proposals, including any made under
paragraph (d), and other data submitted in connection with the proposals are public data.
The school district may choose from any of the initial or final proposals without further
negotiations and in accordance with subdivision 5, but not sooner than 15 days after
the proposals become public data.

(f) School districts that are self-insured shall follow all of the requirements of this
section, except that:

(1) their requests for proposals may be for third-party administrator services, where
applicable;

(2) these requests for proposals must be from a minimum of three different sources,
which may include both entities referenced in subdivision 1 and providers of third-party
administrator services;

(3) for purposes of fulfilling the requirement to request a proposal for group
insurance coverage from an administrator governed by chapter 43A, self-insured districts
are not required to include in the request for proposal the coverage to be provided;

(4) a district that is self-insured on or before the date of enactment, or that is
self-insured with more than 1,000 insured lives, or a district in which the school board
adopted a motion on or before May 14, 2014, to approve a self-insured health care plan
to be effective July 1, 2014, may, but need not, request a proposal from an administrator
governed by chapter 43A;

(5) requests for proposals must be sent to providers no less than 90 days prior to
the expiration of the existing contract; and

(6) proposals must be submitted at least 60 days prior to the plan's renewal date
and all proposals shall be opened at the same time and in the presence of the exclusive
representative, where applicable.

(g) Nothing in this section shall restrict the authority granted to school district boards
of education by section 471.59, except that districts will not be considered self-insured for
purposes of this subdivision solely through participation in a joint powers arrangement.

(h) An entity providing group health insurance to a school district under a multiyear
contract must give notice of any rate or plan design changes applicable under the contract
at least 90 days before the effective date of any change. The notice must be given to the
school district and to the exclusive representatives of employees.

new text begin (i) Notwithstanding the provisions of section 43A.316, subdivision 10, school
employees and their employers insured through chapter 43A are subject to the
requirements of this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end