SF 247

as introduced - 87th Legislature (2011 - 2012) Posted on 02/23/2012 08:35am

A bill for an act
relating to insurance; requiring local government employees to approve
participation in or withdrawal from the public employees insurance program;
amending Minnesota Statutes 2010, sections 43A.316, subdivision 5; 471.61,
subdivision 2b; 471.611, subdivision 2.

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

Section 1.

Minnesota Statutes 2010, section 43A.316, subdivision 5, is amended to
read:

Subd. 5.

Public employee participation.

(a) Participation in the program is subject
to the conditions in this subdivision.

(b) deleted text begin Each exclusive representative for an eligible employer determines whether the
employees it represents will participate in the program. The exclusive representative shall
give the employer notice of intent to participate at least 30 days before the expiration date
of the collective bargaining agreement preceding the collective bargaining agreement that
covers the date of entry into the program. The exclusive representative and the eligible
employer shall give notice to the commissioner of the determination to participate in
the program at least 30 days before entry into the program. Entry into the program is
governed by a schedule established by the commissioner. deleted text end new text begin If an exclusive representative of
eligible employees gives notice to their eligible employer that the employees it represents
desire to participate in the program, that determination shall not become final for any
insurance eligible employees until (1) it is approved by a majority of all insurance eligible
employees of the eligible employer, (2) the exclusive representative and eligible employer
review analysis that compares current insurance coverage with program coverage, and
(3) the eligible employer approves the decision to opt into the program. If enrolling in
the program is approved then either all or none of the insurance eligible employees must
participate in the program, except as provided by section 471.611, subdivision 2. Entry
into the program is governed by a schedule established by the commissioner.
new text end

(c) Employees not represented by exclusive representatives new text begin , including retirees who
continue insurance coverage through the eligible employer, new text end may become members of the
program upon a determination of an eligible employer to include these employees in the
program. Either all or none of the employer's unrepresented employees must participate.
The eligible employer shall give at least 30 days' notice to the commissioner before
entering the program. Entry into the program is governed by a schedule established by
the commissioner.

(d) deleted text begin Participation in the program is for a two-year term. Participation is automatically
renewed for an additional two-year term unless the exclusive representative, or the
employer for unrepresented employees, gives the commissioner notice of withdrawal
at least 30 days before expiration of the participation period. A group that withdraws
must wait two years before rejoining. An exclusive representative, or employer for
unrepresented employees, may also withdraw if premiums increase 50 percent or
more from one insurance year to the next. deleted text end new text begin Participation is automatically renewed for
an additional one-year term unless the exclusive representative, or the employer for
unrepresented employees, gives the commissioner notice of withdrawal at least 30 days
before expiration of the participation period. The program must permit participating
entities to solicit bids and other information from competing sources of health coverage
without penalty. The program must provide each enrolled entity with the entity's monthly
claims data upon request. The program may prohibit the entity from participating in
program coverage for a period of up to one year, if the entity leaves the program and
obtains other health coverage.
new text end

(e) The exclusive representative shall give the employer notice of intent to withdraw
to the commissioner at least 30 days before the expiration date of a collective bargaining
agreement that includes the date on which the term of participation expires.

(f) Each participating eligible employer shall notify the commissioner of names of
individuals who will be participating within two weeks of the commissioner receiving
notice of the parties' intent to participate. The employer shall also submit other information
as required by the commissioner for administration of the program.

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 471.61, subdivision 2b, is amended to read:

Subd. 2b.

Insurance continuation.

A unit of local government must allow a former
employee and the employee's dependents to continue to participate indefinitely in the
employer-sponsored hospital, medical, and dental insurance group that the employee
participated in immediately before retirement, under the following conditions:

(a) The continuation requirement of this subdivision applies only to a former
employee who is receiving a disability benefit or an annuity from a Minnesota public
pension plan other than a volunteer firefighter plan, or who has met age and service
requirements necessary to receive an annuity from such a plan.

deleted text begin (b) Until the former employee reaches age 65, the former employee and dependents
must be pooled in the same group as active employees for purposes of establishing
premiums and coverage for hospital, medical, and dental insurance. However, a former
employee under the age of 65 who is enrolled in Medicare Parts A and B due to the former
employee's disability and for whom Medicare's obligation to pay claims is primary, and
the former employee's dependents, must be pooled in the same group for purposes of this
paragraph as former employees who have reached age 65.
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end A former employee may receive dependent coverage only if the employee
received dependent coverage immediately before leaving employment. This subdivision
does not require dependent coverage to continue after the death of the former employee.
For purposes of this subdivision, "dependent" has the same meaning for former employees
as it does for active employees in the unit of local government.

deleted text begin (d) deleted text end new text begin (c) new text end Coverage for a former employee and dependents may not discriminate on the
basis of evidence of insurability or preexisting conditions unless identical conditions are
imposed on active employees in the group that the employee left.

deleted text begin (e) deleted text end new text begin (d) new text end The former employee must pay the entire premium for continuation coverage,
except as otherwise provided in a collective bargaining agreement or personnel policy.
A unit of local government may discontinue coverage if a former employee fails to pay
the premium within the deadline provided for payment of premiums under federal law
governing insurance continuation.

deleted text begin (f) deleted text end new text begin (e) new text end An employer must notify an employee before termination of employment of
the options available under this subdivision, and of the deadline for electing to continue
to participate.

deleted text begin (g) deleted text end new text begin (f) new text end A former employee must notify the employer of intent to participate within
the deadline provided for notice of insurance continuation under federal law. A former
employee who does not elect to continue participation does not have a right to reenter
the employer's group insurance program.

deleted text begin (h) deleted text end new text begin (g) new text end A former employee who initially selects dependent coverage may later drop
dependent coverage while retaining individual coverage. A former employee may not
drop individual coverage and retain dependent coverage.

deleted text begin (i) deleted text end new text begin (h) new text end This subdivision does not limit rights granted to former employees under
other state or federal law, or under collective bargaining agreements or personnel plans.

deleted text begin (j) deleted text end new text begin (i) new text end Unless otherwise provided by a collective bargaining agreement, if retired
employees were not permitted to remain in the active employee group prior to August
1, 1992, a public employer may assess active employees through payroll deduction for
all or part of the additional premium costs from the inclusion of retired employees in the
active employee group. This paragraph does not apply to employees covered by section
179A.03, subdivision 7.

deleted text begin (k) deleted text end new text begin (j) new text end Notwithstanding section 179A.20, subdivision 2a, insurance continuation
under this subdivision may be provided for in a collective bargaining agreement or
personnel policy.

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 471.611, subdivision 2, is amended to read:

Subd. 2.

Coordination.

A unit of local government that funds all or part of the
cost of health care benefits for a retired employee new text begin , or that allows a retired employee to
continue health insurance coverage through the unit of local government, new text end must provide
for coverage to be coordinated with applicable benefits provided through the federally
sponsored Medicare program.

new text begin EFFECTIVE DATE. new text end

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