SF 805

as introduced - 87th Legislature (2011 - 2012) Posted on 02/23/2012 09:24am

A bill for an act
relating to state government; making changes to the public employees insurance
program; amending Minnesota Statutes 2010, sections 43A.23, subdivision 1;
43A.316, subdivision 8.

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

Section 1.

Minnesota Statutes 2010, section 43A.23, subdivision 1, is amended to read:

Subdivision 1.

General.

(a) The commissioner is authorized to request proposals
or to negotiate and to enter into contracts with parties which in the judgment of the
commissioner are best qualified to provide service to the benefit plans. Contracts entered
into are not subject to the requirements of sections 16C.16 to 16C.19. The commissioner
may negotiate premium rates and coverage. The commissioner shall consider the cost of
the plans, conversion options relating to the contracts, service capabilities, character,
financial position, and reputation of the carriers, and any other factors which the
commissioner deems appropriate. Each benefit contract must be for a uniform term of at
least one year, but may be made automatically renewable from term to term in the absence
of notice of termination by either party. A carrier licensed under chapter 62A is exempt
from the taxes imposed by chapter 297I on premiums paid to it by the state.

(b) All self-insured hospital and medical service products must comply with coverage
mandates, data reporting, and consumer protection requirements applicable to the licensed
carrier administering the product, had the product been insured, including chapters 62J,
62M, and 62Q. Any self-insured products that limit coverage to a network of providers
or provide different levels of coverage between network and nonnetwork providers shall
comply with section 62D.123 and geographic access standards for health maintenance
organizations adopted by the commissioner of health in rule under chapter 62D.

(c) Notwithstanding paragraph (b), a self-insured hospital and medical product
offered under sections 43A.22 to 43A.30 is not required to extend dependent coverage to
an eligible employee's unmarried child under the age of 25 to the full extent required under
chapters 62A and 62L. Dependent coverage must, at a minimum, extend to an eligible
employee's unmarried child who is under the age of 19 or an unmarried child under the
age of 25 who is a full-time student. A person who is at least 19 years of age but who is
under the age of 25 and who is not a full-time student must be permitted to be enrolled as
a dependent of an eligible employee until age 25 if the person:

(1) was a full-time student immediately prior to being ordered into active military
service, as defined in section 190.05, subdivision 5b or 5c;

(2) has been separated or discharged from active military service; and

(3) would be eligible to enroll as a dependent of an eligible employee, except that
the person is not a full-time student.

The definition of "full-time student" for purposes of this paragraph includes any student
who by reason of illness, injury, or physical or mental disability as documented by
a physician is unable to carry what the educational institution considers a full-time
course load so long as the student's course load is at least 60 percent of what otherwise
is considered by the institution to be a full-time course load. Any notice regarding
termination of coverage due to attainment of the limiting age must include information
about this definition of "full-time student."

(d) Beginning January 1, deleted text begin 2010 deleted text end new text begin 2012 new text end , the health insurance benefit plans offered
deleted text begin in the commissioner's plan under section 43A.18, subdivision 2, and the managerial
plan under section 43A.18, subdivision 3, deleted text end new text begin to state employees, including legislators and
legislative staff, new text end must deleted text begin include an option for a deleted text end new text begin be HSA-eligible high-deductible new text end health deleted text begin plan deleted text end new text begin
plans with a $5,000 annual deductible option new text end that is compatible with the definition of a
high-deductible health plan in section 223 of the United States Internal Revenue Code. new text begin
The following provisions apply:
new text end

new text begin (1) the in-network annual out-of-pocket maximum for each annual deductible shall
be $10,000;
new text end

new text begin (2) the employer shall make a $1,500 deposit to an individual HSA and $2,500 for a
family and the deposit is dependent upon available biennial appropriation for this purpose;
new text end

new text begin (3) the plans must cover in-network preventive care at 100 percent not subject to
the deductible and, once the deductible has been met, cover other care with no further
enrollee cost-sharing; and
new text end

new text begin (4) all premium amounts for the high-deductible health plans shall be paid by the
employee.
new text end

Sec. 2.

Minnesota Statutes 2010, section 43A.316, subdivision 8, is amended to read:

Subd. 8.

Continuation of coverage.

(a) A former employee of an employer
participating in the program who is receiving a public pension disability benefit or an
annuity or has met the age and service requirements necessary to receive an annuity under
chapter 353, 353C, 354, 354A, 356, 423, 423A, 424, or Minnesota Statutes 2008, chapter
422A, and the former employee's dependents, are eligible to participate in the program.
This participation is at the person's expense unless a collective bargaining agreement or
personnel policy provides otherwise. Premiums for these participants must be established
by the commissioner new text begin and the participants shall pay all premium amounts. The plans shall
be high-deductible health insurance plans with a $5,000 deductible new text end .

The commissioner may provide policy exclusions for preexisting conditions
only when there is a break in coverage between a participant's coverage under the
employment-based group insurance program and the participant's coverage under this
section. An employer shall notify an employee of the option to participate under this
paragraph no later than the effective date of retirement. The retired employee or the
employer of a participating group on behalf of a current or retired employee shall notify
the commissioner within 30 days of the effective date of retirement of intent to participate
in the program according to the rules established by the commissioner.

(b) The spouse of a deceased employee or former employee may purchase the
benefits provided at premiums established by the commissioner if the spouse was a
dependent under the employee's or former employee's coverage under this section at the
time of the death. The spouse remains eligible to participate in the program as long as
the group that included the deceased employee or former employee participates in the
program. Coverage under this clause must be coordinated with relevant insurance benefits
provided through the federally sponsored Medicare program.

(c) The program benefits must continue in the event of strike permitted by section
179A.18, if the exclusive representative chooses to have coverage continue and the
employee pays the total monthly premiums when due.

(d) A participant who discontinues coverage may not reenroll.

Persons participating under these paragraphs shall make appropriate premium
payments in the time and manner established by the commissioner.

new text begin EFFECTIVE DATE. new text end

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