1.1                          A bill for an act 
  1.2             relating to local government; permitting retired 
  1.3             employees to enroll in health coverage under the 
  1.4             public employees insurance program during an annual 
  1.5             open enrollment period; amending Minnesota Statutes 
  1.6             2000, section 43A.316, subdivision 8.  
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2000, section 43A.316, 
  1.9   subdivision 8, is amended to read: 
  1.10     Subd. 8.  [CONTINUATION OF COVERAGE.] (a) A former employee 
  1.11  of an employer participating in the program who is receiving a 
  1.12  public pension disability benefit or an annuity or has met the 
  1.13  age and service requirements necessary to receive an annuity 
  1.14  under chapter 353, 353C, 354, 354A, 356, 422A, 423, 423A, or 
  1.15  424, and the former employee's dependents, are eligible to 
  1.16  participate in the program.  This participation is at the 
  1.17  person's expense unless a collective bargaining agreement or 
  1.18  personnel policy provides otherwise.  Premiums for these 
  1.19  participants must be established by the commissioner.  
  1.20     The commissioner may provide policy exclusions for 
  1.21  preexisting conditions only when there is a break in coverage 
  1.22  between a participant's coverage under the employment-based 
  1.23  group insurance program and the participant's coverage under 
  1.24  this section.  An employer shall notify an employee of the 
  1.25  option to participate under this paragraph no later than the 
  1.26  effective date of retirement.  The retired employee or the 
  2.1   employer of a participating group on behalf of a current or 
  2.2   retired employee shall notify the commissioner within 30 days of 
  2.3   the effective date of retirement of intent to participate in the 
  2.4   program according to the rules established by the commissioner.  
  2.5   The commissioner must provide a one-month open enrollment period 
  2.6   each year for retired employees, and the enrollment during that 
  2.7   period must not be subject to policy exclusions or other 
  2.8   limitations on coverage for preexisting conditions. 
  2.9      (b) The spouse of a deceased employee or former employee 
  2.10  may purchase the benefits provided at premiums established by 
  2.11  the commissioner if the spouse was a dependent under the 
  2.12  employee's or former employee's coverage under this section at 
  2.13  the time of the death.  The spouse remains eligible to 
  2.14  participate in the program as long as the group that included 
  2.15  the deceased employee or former employee participates in the 
  2.16  program.  Coverage under this clause must be coordinated with 
  2.17  relevant insurance benefits provided through the federally 
  2.18  sponsored Medicare program.  
  2.19     (c) The program benefits must continue in the event of 
  2.20  strike permitted by section 179A.18, if the exclusive 
  2.21  representative chooses to have coverage continue and the 
  2.22  employee pays the total monthly premiums when due.  
  2.23     (d) A participant who discontinues coverage may not 
  2.24  reenroll. 
  2.25     Persons participating under these paragraphs shall make 
  2.26  appropriate premium payments in the time and manner established 
  2.27  by the commissioner. 
  2.28     Sec. 2.  [EFFECTIVE DATE.] 
  2.29     Section 1 is effective the day following final enactment.