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Minnesota Legislature

Office of the Revisor of Statutes

SF 1922

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to insurance; creating a statewide health insurance program for school
district employees; appropriating money; proposing coding for new law in
Minnesota Statutes, chapter 62A.

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

Section 1.

new text begin [62A.662] SCHOOL EMPLOYEE INSURANCE PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section:
new text end

new text begin (a) "Eligible employee" means a person who is insurance eligible under a collective
bargaining agreement or under the personnel policy of an eligible employer.
new text end

new text begin (b) "Eligible employer" means a school 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; an
education unit organized under section 471.59; or a charter school organized under section
124D.10.
new text end

new text begin (c) "Health plan" means: (1) a health plan as defined in section 62A.011, subdivision
3, but not including a multiple employer welfare arrangement operating under chapter
62H; or (2) health coverage offered: (i) under a self-insured arrangement under section
471.617, subdivision 1 or 2; (ii) by a health care network cooperative under chapter 62R;
or (iii) by an accountable provider network under chapter 62T.
new text end

new text begin (d) "Health plan parameter" means a variable feature, such as enrollee cost-sharing,
benefits covered, provider network, or other feature of a health plan that may vary among
health plans available within a health plan platform.
new text end

new text begin (e) "Health plan platform" means a category, framework, or type of health plan,
within which health plan parameters may be specified in order to determine the specific
content of a health plan.
new text end

new text begin (f) "VEBA plan" means a voluntary employees' beneficiary association authorized
under section 501(c)(9) of the Internal Revenue Code, which uses a health reimbursement
arrangement.
new text end

new text begin Subd. 2. new text end

new text begin Creation of board. new text end

new text begin (a) The Minnesota School Employee Insurance Board
is created as a public corporation subject to the provisions of chapter 317A, except as
otherwise provided in this section. As provided in section 15.082, the state is not liable for
obligations of this public corporation. No eligible employer is liable for debts, liabilities,
or obligations of this public corporation.
new text end

new text begin (b) The board shall create and make recommendations regarding the Minnesota
school employee insurance program as described in this section.
new text end

new text begin (c) Insurance coverage must be effective July 1, 2009.
new text end

new text begin (d) If the board does not recommend coverage by December 15, 2010, the board
expires and this section expires on that date.
new text end

new text begin Subd. 3. new text end

new text begin Board of directors. new text end

new text begin (a) The School Employee Insurance Board consists of:
new text end

new text begin (1) seven members representing exclusive representatives of eligible employees,
appointed by exclusive representatives, as provided in paragraph (b);
new text end

new text begin (2) seven members representing eligible employers, appointed by the Minnesota
School Boards Association; and
new text end

new text begin (3) the commissioner of commerce.
new text end

new text begin (b) The seven members of the board who represent statewide affiliates of exclusive
representatives of eligible employees are appointed as follows: four members appointed
by Education Minnesota and one member each appointed by the Service Employees
International Union, the Minnesota School Employees Association, and the American
Federation of State, County and Municipal Employees.
new text end

new text begin (c) Appointing authorities must make their initial appointments no later than August
1, 2007, by filing a notice of the appointment with the commissioner of commerce.
Notices of subsequent appointments must be filed with the board. An entity entitled to
appoint a board member may replace the board member at any time.
new text end

new text begin (d) Board members are eligible for compensation and expense reimbursement under
section 15.0575, subdivision 3.
new text end

new text begin (e) The board shall establish governance requirements, which may include staggered
terms, term limits, quorum, a plan of operation, and audit provisions.
new text end

new text begin (f) All decisions of the board must be approved by at least a majority of all the
members appointed to represent exclusive representatives of eligible employees and by at
least a majority of all the members appointed to represent eligible employers.
new text end

new text begin Subd. 4. new text end

new text begin Design and nature of plans. new text end

new text begin (a) Six health plan platforms, which may
provide eligible employers a choice of health plan parameters, shall be recommended by
the board to all eligible employers, as defined in subdivision 1, provided that the eligible
employer chooses to obtain coverage in the form of one of the health plan platforms
recommended by the board. The board shall recommend acceptable sets of parameters
for each platform. These parameters must not be more restrictive than necessary to
define major aspects of coverage. The health plan platforms may be offered by any
entity permitted under Minnesota law to offer a health plan, as defined in subdivision 1,
paragraph (c).
new text end

new text begin (b) Nothing in this section affects the right of each eligible employer to determine,
through collective bargaining under the Public Employer Labor Relations Act:
new text end

new text begin (1) the employer's eligibility requirements regarding the terms and conditions under
which employees, dependents, retirees, and other persons are eligible for health coverage
from the employer;
new text end

new text begin (2) how much of the premium charged for the insurance will be paid by the employer
and how much will be paid by the eligible person; and
new text end

new text begin (3) which health plan or plans, if any, based upon health plan parameters
recommended by the board, will be made available by the eligible employer.
new text end

new text begin (c) The board must initially recommend at least six health plan platforms. One
platform must provide coverage without a deductible and without other enrollee
cost-sharing other than reasonable co-payments for nonpreventive care. One platform
must qualify as a high-deductible health plan under federal law for use with a health
savings account. One platform must include a VEBA plan, as defined in subdivision 1,
paragraph (f). The other three platforms must have levels of enrollee cost-sharing that
are between the first two platforms described in this paragraph. Plans and premium rates
may vary across geographic regions. The health plans based upon the platforms must
comply with chapters 62A, 62C, 62D, 62E, 62J, 62L, 62M, 62Q, 72A, and 471, and must
provide the optimal combination of coverage, cost, choice, and stability in the judgment
of the board. All health plan platforms and health plans offered must be approved by
the commissioner of commerce.
new text end

new text begin (d) The eligible employer may determine whether it wishes to purchase a health
plan that is fully insured through a health carrier licensed in this state, self-insured, or
a combination of those two alternatives.
new text end

new text begin (e) The health plans must include disease management and consumer education,
including wellness programs and measures encouraging the wise use of health coverage,
to the extent determined to be appropriate by the board.
new text end

new text begin (f) Upon request of the board, health plan companies and other entities that are
providing or have provided health coverage to employees of eligible employers within
two years before the effective date of this section shall provide to the board at no charge
nonidentifiable aggregate claims data for that coverage. The information must include
data relating to employee group benefit sets, demographics, and claims experience.
Notwithstanding section 13.203, Minnesota service cooperatives must also comply with
this paragraph.
new text end

new text begin (g) Effective July 1, 2009, a contract entered into between an eligible employer and
an eligible employee or the exclusive representative of an eligible employee may not
contain provisions that establish cash payment in lieu of health insurance to an eligible
employee if the employee is not receiving the payment on or before June 30, 2009.
Nothing in this section prevents an eligible employee who otherwise qualifies for payment
of cash in lieu of insurance on June 30, 2009, from continuing to receive this payment.
new text end

new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin The board shall report to the legislature by January 15, 2009,
on a final design for the health plan platforms that complies with subdivision 4 and on
governance requirements for the board, which may include staggered terms, term limits,
quorum, and a plan of operation and audit provisions. The report must include any
legislative changes necessary to ensure conformance with chapters 62A, 62C, 62D, 62E,
62J, 62L, 62M, 62Q, 72A, and 471.
new text end

new text begin Subd. 6. new text end

new text begin Progress dependent upon funding. new text end

new text begin The board shall carry out its
obligations to the extent permitted by financial and other resources available to the board
for that purpose. The board may seek and accept gifts and grants.
new text end

new text begin Subd. 7. new text end

new text begin Periodic evaluation. new text end

new text begin (a) Beginning January 15, 2011, and for the next two
years, the board must submit an annual report to the commissioner of commerce and the
legislature, in compliance with sections 3.195 and 3.197, summarizing and evaluating the
performance of the program during the previous year of operation.
new text end

new text begin (b) Beginning in 2013 and in each odd-numbered year thereafter, the board must
submit to the legislature a biennial report summarizing and evaluating the performance of
the program during the preceding two fiscal years.
new text end

Sec. 2. new text beginSTUDY REQUIRED.
new text end

new text begin The legislative auditor shall conduct a study to determine the impact of the cash in
lieu provisions under section 1, subdivision 4, paragraph (g), on the Public Employees
Retirement Association and the Teachers Retirement Association. In addition, the study
shall analyze the added financial burden to school districts and their employees due to
employees opting for cash in lieu of insurance. Such options by employees may result
in adverse selection on a school district's health plan and insurance pool. This study
must be completed by December 31, 2007, and its findings reported to the legislature
by March 1, 2008.
new text end

Sec. 3. new text beginAPPROPRIATION.
new text end

new text begin The base appropriation for the program created in section 1 for fiscal year 2008 is
$1,000,000 as a onetime appropriation to the commissioner of commerce for start-up
and operational costs.
new text end

Sec. 4. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 1 to 3 are effective July 1, 2007.
new text end