Minnesota Legislature
SF 3359
as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
Current Version - as introduced
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A bill for an act
relating to public employees; modifying public employee insurance provisions;
appropriating money; amending Minnesota Statutes 2004, section 43A.316,
subdivisions 1, 2, 3, 4, 5, 10, by adding subdivisions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2004, section 43A.316, subdivision 1, is amended to
read:
Subdivision 1.
Intent.
The legislature finds that the creation of a statewide
programnew text begin using best purchasing practices and innovative benefit design and administrationnew text end
to provide public employeesnew text begin , school districts employees, new text end and other eligible persons
with life insurance and hospital, medical, and dental benefit coverage through provider
organizations would result in a deleted text begin greater utilizationdeleted text end new text begin more efficient usenew text end of government
resources and would advance the health and welfare of the citizens of the state.
Sec. 2.
Minnesota Statutes 2004, section 43A.316, subdivision 2, is amended to read:
Subd. 2.
Definitions.
For the purpose of this section, the terms defined in this
subdivision have the meaning given them.
(a) Commissioner. "Commissioner" means the commissioner of employee relations.
(b) Employee. "Employee" means:
(1) a person who is a public employee within the definition of section 179A.03,
subdivision 14, who is insurance eligible and is employed by an eligible employer;
(2) an elected public official of an eligible employer who is insurance eligible;
(3) a person employed by a labor organization or employee association certified as
an exclusive representative of employees of an eligible employer or by another public
employer approved by the commissioner, so long as the plan meets the requirements of a
governmental plan under United States Code, title 29, section 1002(32); or
(4) a person employed by a county or municipal hospital.
(c) Eligible employer. "Eligible employer" means:
(1) a public employer within the definition of section 179A.03, subdivision 15, that
is a town, county, city, school district as defined in section 120A.05, service cooperative
as defined in section 123A.21, intermediate district as defined in section 136D.01,
Cooperative Center for Vocational Education as defined in section 123A.22, regional
management information center as defined in section 123A.23, or an education unit
organized under the joint powers action, section 471.59; or
(2) an exclusive representative of employees, as defined in paragraph (b);
(3) a county or municipal hospital; or
(4) another public employer approved by the commissioner.
(d) Exclusive representative. "Exclusive representative" means an exclusive
representative as defined in section 179A.03, subdivision 8.
(e) Labor-Management Committee. "Labor-Management Committee" means the
committee established by subdivision 4.
(f) Program. "Program" means the statewide public deleted text begin employees insurancedeleted text end new text begin buyers
groupnew text end program created by subdivision 3.
Sec. 3.
Minnesota Statutes 2004, section 43A.316, subdivision 3, is amended to read:
Subd. 3.
Public deleted text begin employee insurancedeleted text end new text begin buyers groupnew text end program.
The commissioner
shall be the administrator of the public deleted text begin employee insurancedeleted text end new text begin buyers groupnew text end program and
may determine its funding arrangements. The commissioner shall model the program
after the plan established in section 43A.18, subdivision 2, but may modify that plan,
in consultation with the Labor-Management Committee.new text begin The commissioner, or the
commissioner's designated representatives, shall be consulted in discussions or studies
by state agencies related to improving statewide health care quality, outcomes, and costs.
The commissioner may:new text end
new text begin
(1) Develop and administer separately rated programs within the public buyers
group program, including a separately rated and administered program for employees of
public school districts. Separate programs within the public buyers group program may be
pilot or demonstration programs, or permanent programs.
new text end
new text begin
(2) Develop, implement, and administer demonstration or pilot programs to help
explore methods for improving the effectiveness and value of the public buyers group
program.
new text end
new text begin
(3) Conduct evaluations and studies to determine the effectiveness and impact of
pilot, demonstration, or other programs as part of the public buyers group program.
new text end
new text begin
(4) Develop, adopt, modify, and implement strategies to control health care costs
and to improve health care outcomes, including, but not limited to, health care cost and
quality measurement and reporting strategies, pay-for-performance strategies, value-based
purchasing strategies, and other demonstrated or emerging best practices in health care
purchasing.
new text end
new text begin
(5) In consultation with the labor management committee described in subdivision
5, develop, adopt, modify and administer innovative health benefit designs, including
possible tiered arrangements, high-deductible plans with health care savings accounts,
special provider networks, limited benefit plans, incentive programs for healthy behaviors
and health improvement, and other health benefit designs.
new text end
new text begin
(6) Temporarily suspend or limit new entrant groups into the public buyers group
program if necessary to maintain the quality, effectiveness, and viability of the program.
new text end
new text begin
(7) Participate as part of broader community, regional, or national alliances or
initiatives, including joint public-private sector efforts, improve health care purchasing,
and health care costs, quality, and outcomes.
new text end
new text begin
(8) Develop, implement, and administer a Web site and related capabilities to
provide members and the public with information and a means to make inquiries to the
public buyers group program. The Web site may include information on the program's
goals and its performance in reaching the goals.
new text end
Sec. 4.
Minnesota Statutes 2004, section 43A.316, is amended by adding a subdivision
to read:
new text begin Subd. 3a. new text end
new text begin Health improvement programs. new text end
new text begin
The commissioner is authorized to plan,
develop, purchase, administer, and evaluate disease management and other programs,
strategies, and incentives to improve the health and health outcomes of members.
new text end
Sec. 5.
Minnesota Statutes 2004, section 43A.316, subdivision 4, is amended to read:
Subd. 4.
Labor-Management Committee.
The Labor-Management Committee
consists of ten members appointed by the deleted text begin commissionerdeleted text end new text begin governornew text end . The Labor-Management
Committee must comprise five members who represent employees, including at least
one retired employee, and five members who represent eligible employers. Committee
members are eligible for expense reimbursement in the same manner and amount as
authorized by the commissioner's plan adopted under section 43A.18, subdivision 2. The
commissioner shall consult with the labor-management committee in major decisions that
affect the program. The committee shall study issues relating to the insurance program
including, but not limited to, flexible benefits, utilization review, quality assessment, and
cost efficiency. The committee continues to exist while the program remains in operation.
Sec. 6.
Minnesota Statutes 2004, 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) 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.
(c) Employees not represented by exclusive representatives 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) Participation in the program is for a deleted text begin two-yeardeleted text end new text begin three-yearnew text end 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.new text begin The commissioner may modify the participation
requirement as part of a demonstration or pilot effort. Any modifications must be clearly
communicated to all employers who are members of the public buyers group program, and
incorporated in any information about the program, at least 60 days prior to the change
becoming effective. The modifications must apply on an equal basis to all current and
prospective employers enrolled in the program.
new text end
new text begin
(e) The commissioner, in consultation with the Labor-Management Committee and
other experts, may explore mutual gain-sharing arrangements, discounts, incentives,
or penalties for public employers based on the length of their continuous membership
in the public buyers group program and other factors. Any incentives for long-term
membership in the program must be consistent with the program's goals; maintaining the
overall integrity and viability of the program; other applicable laws, rules, and policies;
and available to all groups on equal terms. The terms of any incentives for long-term
participation in the program must be clearly communicated to all employers who are
members of the public buyers group program, and incorporated in any information about
the program. Any administration of, or changes to the incentives, must be communicated
at least 180 days prior to each employer's renewal date before the change may become
effective. The commissioner, in consultation with the Labor-Management Committee,
shall report to the legislature and the governor by January 15, 2008, and annually
thereafter, on the adequacy of the participation requirement and any special incentives
based on the length of participation, in helping maintain the stability and effectiveness of
the public buyers group program.
new text end
deleted text begin (e)deleted text end new text begin (f)new text end 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.
deleted text begin (f)deleted text end new text begin (g)new text end 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.
Sec. 7.
Minnesota Statutes 2004, section 43A.316, is amended by adding a subdivision
to read:
new text begin Subd. 5a. new text end
new text begin Participating employer rights to data. new text end
new text begin
Employers participating in
the public buyers group program shall not be refused or impeded by the program in
their efforts to obtain the utilization or claims data needed by the employer to seek
alternative bids for insurance coverage. The ability of participating employers to secure
their data for the purposes of seeking alternative bids for coverage exists regardless of
any other program participation requirements or incentives for long-term participation
in the program. Participating employers will not be charged for the report generated to
satisfy this subdivision.
new text end
Sec. 8.
Minnesota Statutes 2004, section 43A.316, is amended by adding a subdivision
to read:
new text begin Subd. 5b. new text end
new text begin School districts. new text end
new text begin
School districts eligible for the public buyers group
program must request bids for insurance coverage through the public buyers group
program at least once every four years. This subdivision does not require school districts
eligible for the program to purchase coverage through the program. Other public
employers are encouraged to seek bids from the public buyers group program at least
once every four years.
new text end
Sec. 9.
Minnesota Statutes 2004, section 43A.316, is amended by adding a subdivision
to read:
new text begin Subd. 9a. new text end
new text begin Report. new text end
new text begin
The commissioner shall report biennially to the governor and
legislature on March 1 of each odd-numbered year. The report will include information on
membership, finances, operations, effectiveness, and impact of the public buyers group
program. The report may include discussion of changes and innovations, particularly with
respect to improving health care costs, quality, and outcomes, and any issues or challenges
faced by the program and how they might be addressed. The report will be posted on a
Web site maintained by or for the public buyers group program, and must be available
to the public.
new text end
Sec. 10.
Minnesota Statutes 2004, section 43A.316, subdivision 10, is amended to read:
Subd. 10.
Exemption.
The public deleted text begin employee insurancedeleted text end new text begin buyers groupnew text end program
and, where applicable, the employers participating in it are exempt from chapters 60A,
62A, 62C, 62D, 62E, and 62H, section 471.617, subdivisions 2 and 3, and the bidding
requirements of section 471.6161.new text begin Nothing in this statute or other statutes shall limit the
commissioner's ability to develop and test innovative health insurance benefit designs for
the public buyers group program.new text end
Sec. 11. new text begin APPROPRIATION.
new text end
new text begin
Notwithstanding Minnesota Statutes, section 295.581, $60,000 in fiscal year 2006
and $2,260,000 in fiscal year 2007 are appropriated from the health care access fund to
the commissioner of employee relations for onetime administrative costs for marketing,
communication, plan administration, and the development of a data warehouse to support
the Public Buyers Group.
new text end
Sec. 12. new text begin REVISOR'S INSTRUCTION.
new text end
new text begin
The revisor of statutes shall change the headnote for Minnesota Statutes, section
43A.316, to read "PUBLIC BUYERS GROUP PROGRAM."
new text end