SF 3767

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

A bill for an act
relating to health; establishing a health coverage subsidy program for eligible
small employers and employees and dependents; proposing coding for new law
as Minnesota Statutes, chapter 62U.

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

Section 1.

new text begin [62U.09] SUBSIDIES FOR EMPLOYER HEALTH COVERAGE.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment of subsidy program. new text end

new text begin The commissioner of human
services shall establish a subsidy program for eligible employees and dependents with
access to employer-subsidized health coverage and eligible employers. Subsidies must be
available beginning July 1, 2009. For purposes of this section, employer-subsidized health
coverage has the meaning provided in section 256L.07, subdivision 2, paragraph (c).
new text end

new text begin Subd. 2. new text end

new text begin Eligible employees and dependents. new text end

new text begin In order to be eligible for a subsidy
under this section, an employee or dependent shall:
new text end

new text begin (1) be covered by employer-subsidized health coverage that meets the benefits set
and design requirements established under section 62U.04, in 2008 H. F. 3391, if enacted,
and is purchased through the Minnesota Health Insurance Exchange established under
section 62U.02, in 2008 H. F. 3391, if enacted; and
new text end

new text begin (2) meet all eligibility criteria for the MinnesotaCare program established under
chapter 256L, except for the requirements related to:
new text end

new text begin (i) no access to employer-subsidized coverage under section 256L.07, subdivision
2; and
new text end

new text begin (ii) no other health coverage under section 256L.07, subdivision 3.
new text end

new text begin Subd. 3. new text end

new text begin Amount of employee subsidy. new text end

new text begin The subsidy must equal the amount the
employee is required to pay for health coverage for the employee and any dependents,
including premiums, deductibles, and other cost sharing, minus an amount based on
the affordability standard specified in section 62U.08, in 2008 H. F. 3391, if enacted.
The maximum subsidy must not exceed the amount of the subsidy that would have been
provided under the MinnesotaCare program, if the employee and any dependents were
eligible for that program.
new text end

new text begin Subd. 4. new text end

new text begin Payment of employee subsidy. new text end

new text begin The commissioner shall pay the subsidy
amount for an employee and any dependents to the Minnesota Health Insurance Exchange,
and this payment shall be credited toward the employee's share of premium. Any
additional amount paid by the commissioner to the Minnesota Health Insurance Exchange
that exceeds the employee's share of premium must be credited first toward the employee
deductible and then toward any employee cost-sharing obligation.
new text end

new text begin Subd. 5. new text end

new text begin Eligible employer. new text end

new text begin (a) In order to be eligible for a subsidy under this
section, an employer must:
new text end

new text begin (1) meet the definition of small employer in section 62L.02, subdivision 26;
new text end

new text begin (2) have an average hourly wage across all employees for the reporting year
designated by the commissioner that does not exceed 130 percent of the federal poverty
guidelines for a household size of four when converted to a full-time equivalent;
new text end

new text begin (3) meet the employee participation requirement under section 62L.03, subdivision
3; and
new text end

new text begin (4) contribute at least 50 percent toward the cost of coverage of each eligible
employee and any dependents, before any employer subsidy provided by this section.
new text end

new text begin (b) An employer applying for or seeking renewal of a subsidy must submit to the
commissioner, in the form and manner specified by the commissioner, all information the
commissioner determines is necessary to verify eligibility under paragraph (a).
new text end

new text begin Subd. 6. new text end

new text begin Amount and payment of employer subsidy. new text end

new text begin The subsidy for eligible
employers equals 25 percent of the cost of coverage of each eligible employee and any
dependents. The commissioner shall pay the subsidy amount to the Minnesota Health
Insurance Exchange on behalf of the employer. The employer is responsible for paying
the remaining portion of the employer share to the exchange.
new text end