Minnesota Legislature
SF 646
as introduced - 87th Legislature (2011 - 2012) Posted on 02/23/2012 09:09am
Current Version - as introduced
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A bill for an act
relating to insurance; making changes in the public employee insurance program
administrated by Minnesota Management and Budget for local government
employees; requiring that the program pay certain taxes and assessments on
the same basis as private sector health insurers; amending Minnesota Statutes
2010, sections 43A.316, subdivisions 9, 10; 62E.02, subdivision 23; 62E.10,
subdivision 1; 297I.05, subdivision 12; repealing Minnesota Statutes 2010,
section 297I.15, subdivision 3.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2010, section 43A.316, subdivision 9, is amended to
read:
Subd. 9.
Insurance trust fund.
The insurance trust fund in the state treasury
consists of deposits of the premiums received from employers participating in the
program and transfers before July 1, 1994, from the excess contributions holding account
established by section 353.65, subdivision 7. All money in the fund is appropriated to
the commissioner to pay insurance premiums, approved claims, refunds, administrative
costs, and other related deleted text begin servicedeleted text end costsnew text begin , including costs and assessments incurred under
chapters 62E and 297I in connection with the public employee insurance programnew text end .
Premiums paid by employers to the fund are exempt from the taxes imposed by chapter
297Inew text begin , except for those attributable to the public employee insurance program under section
297I.05, subdivision 12new text end . The commissioner shall reserve an amount deleted text begin of money to cover
the estimated costs of claims incurred but unpaiddeleted text end new text begin equal to at least two months' claim
costsnew text end . The State Board of Investment shall invest the money according to section 11A.24.
Investment income and losses attributable to the fund must be credited to the fund.
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 43A.316, subdivision 10, is amended to read:
Subd. 10.
Exemption.
new text begin (a) new text end The public employee insurance program and, where
applicable, the employers participating in it are exempt from chapters 60A, deleted text begin 62A,deleted text end
62C, 62D, deleted text begin 62E,deleted text end and 62H,new text begin andnew text end section 471.617, subdivisions 2 and 3deleted text begin , and the bidding
requirements of section 471.6161deleted text end .
new text begin
(b) Notwithstanding paragraph (a), the public employee insurance program is a
contributing member of the Minnesota Comprehensive Health Association and must pay
assessments of the association on the gross premium revenue minus any return premiums.
Premiums received from the groups that were covered by the public employee insurance
program before May 1, 2011, are exempt from paying the assessment so long as the groups
maintain continuous coverage in the public employee insurance program.
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
Sec. 3.
Minnesota Statutes 2010, section 62E.02, subdivision 23, is amended to read:
Subd. 23.
Contributing member.
"Contributing member" means those companies
regulated under chapter 62A and offering, selling, issuing, or renewing policies or
contracts of accident and health insurance; health maintenance organizations regulated
under chapter 62D; nonprofit health service plan corporations regulated under chapter 62C;
community integrated service networks regulated under chapter 62N; fraternal benefit
societies regulated under chapter 64B; the Minnesota employees insurance program
established in section 43A.317, effective July 1, 1993; deleted text begin anddeleted text end joint self-insurance plans
regulated under chapter 62Hnew text begin ; and the public employee insurance program established
under section 43A.316new text end . For the purposes of determining liability of contributing members
pursuant to section 62E.11 payments received from or on behalf of Minnesota residents
for coverage by a health maintenance organization deleted text begin ordeleted text end new text begin , anew text end community integrated service
networknew text begin , or the public employee insurance programnew text end shall be considered to be accident
and health insurance premiums.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 4.
Minnesota Statutes 2010, section 62E.10, subdivision 1, is amended to read:
Subdivision 1.
Creationnew text begin and membershipnew text end ; tax exemption.
There is established a
Comprehensive Health Association to promote the public health and welfare of the state
of Minnesota with membership consisting of all insurers; self-insurers; fraternals; joint
self-insurance plans regulated under chapter 62H; the Minnesota employees insurance
program established in section 43A.317, effective July 1, 1993; new text begin the public employee
insurance program established under section 43A.316; new text end health maintenance organizations;
and community integrated service networks licensed or authorized to do business in this
state. The Comprehensive Health Association is exempt from the taxes imposed under
chapter 297I and any other laws of this state and all property owned by the association
is exempt from taxation.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 5.
Minnesota Statutes 2010, section 297I.05, subdivision 12, is amended to read:
Subd. 12.
Other entities.
(a) A tax is imposed equal to two percent of:
(1) gross premiums less return premiums written for risks resident or located in
Minnesota by a risk retention group;
(2) gross premiums less return premiums received by an attorney in fact acting
in accordance with chapter 71A;
(3) gross premiums less return premiums received pursuant to assigned risk policies
and contracts of coverage under chapter 79;
(4) the direct funded premium received by the reinsurance association under section
79.34 from self-insurers approved under section 176.181 and political subdivisions that
self-insure; and
(5) gross premiums less return premiums paid to an insurer other than a licensed
insurance company or a surplus lines licensee for coverage of risks resident or located in
Minnesota by a purchasing group or any members of the purchasing group to a broker or
agent for the purchasing group.
(b) A tax is imposed on a joint self-insurance plan operating under chapter 60F. The
rate of tax is equal to two percent of the total amount of claims paid during the fund year,
with no deduction for claims wholly or partially reimbursed through stop-loss insurance.
(c) A tax is imposed on a joint self-insurance plan operating under chapter 62H.
The rate of tax is equal to two percent of the total amount of claims paid during the
fund's fiscal year, with no deduction for claims wholly or partially reimbursed through
stop-loss insurance.
(d) A tax is imposed equal to the tax imposed under section 297I.05, subdivision 5,
on the gross premiums less return premiums on all coverages received by an accountable
provider network or agents of an accountable provider network in Minnesota, in cash or
otherwise, during the year.
new text begin
(e) A tax is imposed on the public employee insurance program equal to two percent
of the gross premiums less return premiums received by the public employee insurance
program in that calendar year. Groups covered by the public employee insurance program
before May 1, 2011, are exempt from the tax so long as they maintain continuous
enrollment in the public employee insurance program.
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
Sec. 6. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2010, section 297I.15, subdivision 3,
new text end
new text begin
is repealed.
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