HF 371

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 05/02/2011 03:11pm

A bill for an act
relating to insurance; requiring local government employees to approve
participation in or withdrawal from the public employees insurance program;
amending Minnesota Statutes 2010, sections 43A.316, subdivision 5; 471.611,
subdivision 2.

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

Section 1.

Minnesota Statutes 2010, section 43A.316, subdivision 5, is amended to
read:

Subd. 5.

Public employee participation.

(a) Participation in the program is subject
to the conditions in this subdivision.

(b) deleted text begin Each exclusive representative for an eligible employer determines whether the
employees it represents will participate in the program. The exclusive representative shall
give the employer notice of intent to participate at least 30 days before the expiration date
of the collective bargaining agreement preceding the collective bargaining agreement that
covers the date of entry into the program. The exclusive representative and the eligible
employer shall give notice to the commissioner of the determination to participate in the
program at least 30 days before entry into the program. Entry into the program is governed
by a schedule established by the commissioner. deleted text end new text begin If an exclusive representative of eligible
employees gives notice to their eligible employer that the employees it represents desire to
participate in the program, that determination shall not become final for any insurance
eligible employees unless (1) the eligible employer and exclusive representative of the
employees of an appropriate bargaining unit, certified under section 179A.12, agree to
the change, and (2) it is approved by a majority of all insurance eligible employees of the
appropriate bargaining unit. If enrolling in the program is approved then either all or none
of the insurance eligible employees of the appropriate bargaining unit must participate in
the program, except as provided by section 471.611, subdivision 2. Entry into the program
is governed by a schedule established by the commissioner.
new text end

(c) Employees not represented by exclusive representatives new text begin , including retirees who
continue insurance coverage through the eligible employer, new text end may become members of the
program upon a determination of an eligible employer to include these employees in the
program. Either all or none of the employer's unrepresented employees must participate.
The eligible employer shall give at least 30 days' notice to the commissioner before
entering the program. Entry into the program is governed by a schedule established by
the commissioner.

(d) deleted text begin Participation in the program is for a two-year term. Participation is automatically
renewed for an additional two-year term unless the exclusive representative, or the
employer for unrepresented employees, gives the commissioner notice of withdrawal
at least 30 days before expiration of the participation period. A group that withdraws
must wait two years before rejoining. An exclusive representative, or employer for
unrepresented employees, may also withdraw if premiums increase 50 percent or
more from one insurance year to the next. deleted text end new text begin Participation is automatically renewed for
an additional one-year term unless the exclusive representative, or the employer for
unrepresented employees, gives the commissioner notice of withdrawal at least 30 days
before expiration of the participation period. The program must permit participating
entities to solicit bids and other information from competing sources of health coverage
without penalty. The program must provide each enrolled entity with the entity's monthly
claims data upon request. The program may prohibit the entity from participating in
program coverage for a period of up to one year, if the entity leaves the program and
obtains other health coverage.
new text end

(e) The exclusive representative shall give the employer notice of intent to withdraw
to the commissioner at least 30 days before the expiration date of a collective bargaining
agreement that includes the date on which the term of participation expires.

(f) Each participating eligible employer shall notify the commissioner of names of
individuals who will be participating within two weeks of the commissioner receiving
notice of the parties' intent to participate. The employer shall also submit other information
as required by the commissioner for administration of the program.

new text begin EFFECTIVE DATE. new text end

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

Sec. 2.

Minnesota Statutes 2010, section 471.611, subdivision 2, is amended to read:

Subd. 2.

Coordination.

A unit of local government that funds all or part of the
cost of health care benefits for a retired employee new text begin , or that allows a retired employee to
continue health insurance coverage through the unit of local government, new text end must provide
for coverage to be coordinated with applicable benefits provided through the federally
sponsored Medicare program.

new text begin EFFECTIVE DATE. new text end

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