SF 1651

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to insurance; regulating joint self-insurance 
  1.3             plans; amending Minnesota Statutes 2002, sections 
  1.4             62H.01; 62H.04; 62H.07. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 2002, section 62H.01, is 
  1.7   amended to read: 
  1.8      62H.01 [AUTHORITY TO JOINTLY SELF-INSURE.] 
  1.9      Any two or more employers, excluding the state and its 
  1.10  political subdivisions as described in section 471.617, 
  1.11  subdivision 1, who are authorized to transact business in 
  1.12  Minnesota may jointly self-insure employee health, dental, 
  1.13  short-term disability benefits, or other benefits permitted 
  1.14  under the Employee Retirement Income Security Act of 1974, 
  1.15  United States Code, title 29, sections 1001 et seq.  If an 
  1.16  employer chooses to jointly self-insure in accordance with this 
  1.17  chapter, the employer must participate in the joint plan for at 
  1.18  least three consecutive years.  If an employer terminates 
  1.19  participation in the joint plan before the conclusion of this 
  1.20  three-year period, a financial penalty may be assessed under the 
  1.21  joint plan, not to exceed the amount contributed by the employer 
  1.22  to the plan's reserves as determined under Minnesota Rules, part 
  1.23  2765.1200.  Joint plans must have a minimum of 1,000 covered 
  1.24  employees enrollees and meet all conditions and terms of 
  1.25  sections 62H.01 to 62H.08.  Joint plans covering employers not 
  2.1   resident in Minnesota must meet the requirements of sections 
  2.2   62H.01 to 62H.08 as if the portion of the plan covering 
  2.3   Minnesota resident employees was treated as a separate plan.  A 
  2.4   plan may cover employees resident in other states only if the 
  2.5   plan complies with the applicable laws of that state. 
  2.6      A multiple employer welfare arrangement as defined in 
  2.7   United States Code, title 29, section 1002(40)(a), is subject to 
  2.8   this chapter to the extent authorized by the Employee Retirement 
  2.9   Income Security Act of 1974, United States Code, title 29, 
  2.10  sections 1001 et seq.  The commissioner of commerce may, on 
  2.11  behalf of the state, enter into an agreement with the United 
  2.12  States Secretary of Labor for delegation to the state of some or 
  2.13  all of the secretary's enforcement authority with respect to 
  2.14  multiple employer welfare arrangements, as described in United 
  2.15  States Code, title 29, section 1136(c). 
  2.16     Sec. 2.  Minnesota Statutes 2002, section 62H.04, is 
  2.17  amended to read: 
  2.18     62H.04 [COMPLIANCE WITH OTHER LAWS.] 
  2.19     (a) A joint self-insurance plan is subject to the 
  2.20  requirements of chapters 62A, 62E, 62L, and 62Q, and sections 
  2.21  72A.17 to 72A.32 unless otherwise specifically exempt.  A joint 
  2.22  self-insurance plan must pay assessments made by the Minnesota 
  2.23  Comprehensive Health Association, as required under section 
  2.24  62E.11.  Some or all of this fund amount may be guaranteed by an 
  2.25  entity that can be approved and monitored by the commissioner 
  2.26  and the fund can be accumulated over the first 12 months of the 
  2.27  plan. 
  2.28     (b) A joint self-insurance plan is exempt from providing 
  2.29  the mandated health benefits described in chapters 62A, 62E, 
  2.30  62L, and 62Q if it otherwise provides the benefits required 
  2.31  under the Employee Retirement Income Security Act of 1974, 
  2.32  United States Code, title 29, sections 1001, et seq., for all 
  2.33  employers and not just for the employers with 50 or more 
  2.34  employees who are covered by that federal law.  
  2.35     (c) A joint self-insurance plan is exempt from section 
  2.36  62L.03, subdivision 1, if the plan offers an annual open 
  3.1   enrollment period of no less than 15 days during which all 
  3.2   employers that qualify for membership may enter the plan without 
  3.3   preexisting condition limitations or exclusions except those 
  3.4   permitted under chapter 62L.  
  3.5      (d) A joint self-insurance plan is exempt from sections 
  3.6   62A.16, 62A.17, 62A.20, and 62A.21 if the joint self-insurance 
  3.7   plan complies with the continuation requirements under the 
  3.8   Employee Retirement Income Security Act of 1974, United States 
  3.9   Code, title 29, sections 1001, et seq., for all employers and 
  3.10  not just for the employers with 20 or more employees who are 
  3.11  covered by that federal law. 
  3.12     (e) A joint self-insurance plan must provide to all 
  3.13  employers the maternity coverage required by federal law for 
  3.14  employers with 15 or more employees. 
  3.15     Sec. 3.  Minnesota Statutes 2002, section 62H.07, is 
  3.16  amended to read: 
  3.17     62H.07 [REVENUE FEE.] 
  3.18     A joint self-insurance plan shall pay a two percent revenue 
  3.19  fee.  This revenue must be computed based on two percent of the 
  3.20  paid claims level for the most recently completed calendar 
  3.21  year.  This revenue must be deposited in the general fund.  If 
  3.22  the joint self-insurance plan is organized as a health care 
  3.23  purchasing alliance under chapter 62T, the revenue fee is waived.