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Minnesota Legislature

Office of the Revisor of Statutes

HF 573

as introduced - 88th Legislature (2013 - 2014) Posted on 02/14/2013 01:55pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to insurance; regulating the public employees insurance program;
requiring participation by certain school employers;amending Minnesota
Statutes 2012, section 43A.316, subdivisions 2, 4, 5, by adding subdivisions.

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

Section 1.

Minnesota Statutes 2012, section 43A.316, subdivision 2, is amended to read:


Subd. 2.

Definitions.

For the purpose of this section, the terms defined in this
subdivision have the meaning given them.

(a) Commissioner. "Commissioner" means the commissioner of management and
budget.

(b) Employee. "Employee" means:

(1) a person who is a public employee within the definition of section 179A.03,
subdivision 14
, who is insurance eligible and is employed by an eligible employer;

(2) an elected public official of an eligible employer who is insurance eligible;

(3) a person employed by a labor organization or employee association certified as
an exclusive representative of employees of an eligible employer or by another public
employer approved by the commissioner, so long as the plan meets the requirements of a
governmental plan under United States Code, title 29, section 1002(32); or

(4) a person employed by a county or municipal hospital.

(c) Eligible employer. "Eligible employer" means:

(1) a public employer within the definition of section 179A.03, subdivision 15, that
is a town, county, city, school district as defined in section 120A.05, service cooperative
as defined in section 123A.21, intermediate district as defined in section 136D.01,
Cooperative Center for Vocational Education as defined in section 123A.22, regional
management information center as defined in section 123A.23, or an education unit
organized under the joint powers action, section 471.59; or

(2) an exclusive representative of employees, as defined in paragraph (b)new text begin, and its
state affiliate
new text end;

(3) a county or municipal hospital; or

(4) another public employer approved by the commissioner.

(d) Exclusive representative. "Exclusive representative" means an exclusive
representative as defined in section 179A.03, subdivision 8.

(e) Labor-Management Committee. "Labor-Management Committee" means the
committee established by subdivision 4.

(f) Program. "Program" means the statewide public employees insurance program
created by subdivision 3.

new text begin (g) School employee. "School employee" means an employee of a school employer.
new text end

new text begin (h) School employer. "School employer" means a district as defined in section
120A.05, a service cooperative as defined in section 123A.21, an intermediate district as
defined in section 136D.01, a cooperative center for vocational education as defined in
section 123A.22, a regional management information center as defined in section 123A.23,
or an education unit organized under a joint powers agreement under section 471.59.
new text end

Sec. 2.

Minnesota Statutes 2012, section 43A.316, subdivision 4, is amended to read:


Subd. 4.

Labor-Management Committee.

deleted text begin The Labor-Management Committee
consists of ten members appointed by the commissioner. The Labor-Management
Committee must comprise five members who represent employees, including at least
one retired employee, and five members who represent eligible employers. Committee
members are eligible for expense reimbursement in the same manner and amount as
authorized by the commissioner's plan adopted under section 43A.18, subdivision 2. The
commissioner shall consult with the labor-management committee in major decisions that
affect the program. The committee shall study issues relating to the insurance program
including, but not limited to, flexible benefits, utilization review, quality assessment, and
cost efficiency. The committee continues to exist while the program remains in operation.
deleted text end

new text begin The Labor-Management Committee consists of 14 members appointed to represent
eligible school employers and eligible school employees in equal numbers. The seven
members who represent eligible school employers shall consist of four appointed by
the Minnesota School Boards Association and one each appointed by the Minnesota
Association of School Administrators, the Minnesota Elementary School Principals
Association, and the Minnesota Secondary School Principals Association. The seven
members who represent eligible school employees shall consist of four appointed by
Education Minnesota and one each appointed by the Service Employees International
Union; the American Federation of State, County, and Municipal Employees, Local
Council 5; and the Minnesota School Employees Association. Committee members are
eligible for expense reimbursement in the same manner and amount as authorized by the
commissioner's plan adopted under section 43A.18, subdivision 2. The commissioner
shall consult with the labor-management committee in major decisions that affect the
program. The commissioner and the committee must mutually agree to all plan design
changes. The committee shall study issues relating to the insurance program including, but
not limited to, flexible benefits, utilization review, quality assessment, and cost efficiency.
The committee continues to exist while the program remains in operation.
new text end

Sec. 3.

Minnesota Statutes 2012, 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) 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.

(c) Employees not represented by exclusive representatives 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) 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.

(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 (g) A school employer that makes available health insurance coverage for employees,
either in a self-insured or fully insured arrangement, including those purchasing coverage
through a service cooperative as defined by section 123A.21, must purchase health
insurance coverage through the program, beginning January 1, 2014, as contracts or
agreements with providers that were in place upon enactment expire. Employees of school
employers obligated by a health insurance contract expiring December 31, 2013, must
begin participation in the program on January 1, 2014. In the event an insurance contract
expires after enactment and before December 31, 2013, subsequent contracts will be limited
to one year in duration. School employers may opt out as described in clauses (1) to (5).
new text end

new text begin (1) The school board of a school employer that was individually self-insured, not
including a service cooperative under section 123A.21, with 1,000 or more insured lives
on the day of enactment and each exclusive representative of employees of that school
employer shall jointly determine whether the employees represented by the exclusive
representative will opt out of the program. The school employer must give notice to the
commissioner of the school employer's decision to opt out, at least 30 days prior to the
required entrance into the program. The notice must include all the names of the exclusive
representatives opting out as well as the names of nonrepresented employees. Clauses (2)
to (7) apply only to employees of the school employers described in this clause.
new text end

new text begin (2) Employees not represented by an exclusive representative may enter the public
employee insurance program in the manner described in paragraph (c).
new text end

new text begin (3) Exclusive representatives of school employers and nonrepresented employees
of school employers who do not enter the program on the date of initial eligibility for
participation shall be ineligible to participate until a period of four years has elapsed since
initial eligibility and may, at the discretion of the commissioner, be pooled and rated
separately from the other employees in the program for the first four years after entering
the program. This clause does not prohibit an employee from a district or exclusive
representative that has not declined participation from later becoming a member of the
program.
new text end

new text begin (4) The decision of the school board of a school employer and an exclusive
representative of employees or, in the case of employees not represented by an exclusive
representative, the decision of the school board of a school employer, to not opt out of
entry into the program is irrevocable.
new text end

new text begin (5) School employers may opt out only if the total self-insured lives remaining after
applying clauses (2) to (4) is more than 1,000 insured lives.
new text end

new text begin (6) School employers with individual self-insured plans whose employees will be
participating in the program that have unused reserve funds after all obligations have
been met, may negotiate with the exclusive representative regarding the reserve amount
attributable to the proportionate number of insured lives covered by that exclusive
representative. If the school employer and the exclusive representative are unable to
come to an agreement, the remaining funds will be used to pay the full premium to the
program for all employees represented by the exclusive representative of that school
employer participating in the program until the proportionate reserve funds are depleted.
These funds shall be used for a proportional premium payment at the time it is necessary
to deplete the balance.
new text end

new text begin (7) School employers leaving a section 123A.21 plan with a service cooperative
will receive a prorated share of the service cooperative reserves and distribute them as
required in clause (6).
new text end

Sec. 4.

Minnesota Statutes 2012, section 43A.316, is amended by adding a subdivision
to read:


new text begin Subd. 11. new text end

new text begin Nonidentifiable aggregate claims data from past coverage. new text end

new text begin Upon
request by the commissioner, entities that are providing or have provided coverage to
eligible school employees, shall provide to the commissioner at no charge nonidentifiable
aggregate claims data for that coverage. The information must include data relating to
school employees' group benefit sets, demographics, claims experience, and any other data
or information deemed by the commissioner as necessary to accurately and appropriately
underwrite the risk of the school employees, notwithstanding section 13.203.
new text end

Sec. 5.

Minnesota Statutes 2012, section 43A.316, is amended by adding a subdivision
to read:


new text begin Subd. 12. new text end

new text begin School employee start-up funding; administration of ongoing
revenues and expenses.
new text end

new text begin The commissioner may impose a reserve surcharge in the first
three years of school employee enrollment at the commissioner's discretion.
new text end