SF 2913

as introduced - 86th Legislature (2009 - 2010) Posted on 02/26/2010 11:38am

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 2008, sections 43A.316, by adding a subdivision;
471.61, subdivision 2b; 471.611, subdivision 2.

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

Section 1.

Minnesota Statutes 2008, section 43A.316, is amended by adding a
subdivision to read:

new text begin Subd. 5a. new text end

new text begin Political subdivisions. new text end

new text begin Notwithstanding subdivision 5, if the exclusive
representative of a group of employees in a political subdivision gives notice to the
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 secret ballot of all employees of the political subdivision and (2) the
exclusive representative negotiates entrance into the public employees insurance program
with the management of the political subdivision. Except as provided by section 471.611,
subdivision 2, either all or none of the insurance eligible employees who obtain coverage
through the political subdivision must participate in the program if participation is
approved by the vote of a majority of the employees in the district. Each employee shall
have one vote. No more than one vote on whether to participate may be conducted in any
fiscal year. A withdrawal from the program shall require a similar vote of approval by all
employees and negotiation with the political subdivision.
new text end

Sec. 2.

Minnesota Statutes 2008, 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.
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.

Sec. 3.

Minnesota Statutes 2008, section 471.611, subdivision 2, is amended to read:

Subd. 2.

Coordination.

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

new text begin (b) A unit of local government that allows retired employees to continue health
insurance coverage through the unit of local government must provide for coverage to be
coordinated with applicable benefits provided through the federally sponsored Medicare
program.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2010.
new text end