SF 347

3rd Engrossment - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:12am

A bill for an act
relating to employment; providing health coverage to certain unemployed
workers; assessing a workforce support fee; appropriating money.

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

Section 1. new text begin TEMPORARY MINNESOTACARE COVERAGE FOR
UNEMPLOYED WORKERS.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility requirement. new text end

new text begin An applicant for unemployment benefits
is eligible for temporary MinnesotaCare coverage without meeting any of the eligibility
criteria under Minnesota Statutes, chapter 256L, if:
new text end

new text begin (1) the applicant was laid off from the applicant's most recent employment due to lack
of work, and the layoff is not expected by the applicant or the employer to be temporary;
new text end

new text begin (2) the layoff was not due to the seasonal nature of the applicant's work;
new text end

new text begin (3) the applicant has served the nonpayable waiting week under Minnesota Statutes,
section 268.085, subdivision 1, clause (5);
new text end

new text begin (4) the applicant resides in Minnesota;
new text end

new text begin (5) the applicant has wages paid of $5,000 or more in each of the eight consecutive
calendar quarters before the effective date of the application for unemployment benefits;
new text end

new text begin (6) the applicant's spouse does not have health care coverage available through the
spouse's employer in which the applicant could be considered a dependent and receive
health care through dependent coverage;
new text end

new text begin (7) the applicant is not eligible for federal reimbursement or federal payment of a
portion of COBRA premiums under the American Recovery and Reinvestment Act; and
new text end

new text begin (8) at the time of application for unemployment benefits, these benefits are the
applicant's primary source of income.
new text end

new text begin Subd. 2. new text end

new text begin Family coverage. new text end

new text begin If the applicant meets the criteria under subdivision 1,
the applicant's family is also eligible for temporary MinnesotaCare under this section and
is not required to meet eligibility criteria under Minnesota Statutes, chapter 256L. For
purposes of this subdivision, "family" has the meaning provided in Minnesota Rules, part
9506.0010, subpart 11, and shall include any family member who was covered under any
health coverage provided by the applicant's most recent employer and who does not have
other health coverage available.
new text end

new text begin Subd. 3. new text end

new text begin Covered services. new text end

new text begin Temporary MinnesotaCare coverage under this section
shall include all health services provided under Minnesota Statutes, section 256L.03.
new text end

new text begin Subd. 4. new text end

new text begin Notice and application. new text end

new text begin The commissioner of employment and economic
development must, as part of the application for unemployment benefits, inform an
applicant that temporary MinnesotaCare coverage may be available, and that if coverage
is elected a deduction of ten percent of the applicant's weekly benefit amount will be made
to pay a portion of the cost of coverage. If the applicant elects coverage, then as part of
that application process, the commissioner of employment and economic development
must obtain information necessary and determine if the applicant is eligible for temporary
MinnesotaCare under this section. This information must be immediately provided to the
commissioner of human services. The commissioner of human services must notify the
applicant of eligibility or non-eligibility and automatically enroll the applicant and the
applicant's family members in temporary MinnesotaCare coverage if eligible under this
section. An enrollee or the enrollee's family members shall be disenrolled if other health
care coverage becomes available to the enrollee or the enrollee's family members or the
period of coverage provided under this section expires.
new text end

new text begin Subd. 5. new text end

new text begin Payments by individual. new text end

new text begin If the individual is deemed eligible for temporary
MinnesotaCare, ten percent of an individual's weekly unemployment benefit amount shall
be deducted and withheld from the applicant's weekly unemployment benefit payment in
accordance with section 4. The individual and the individual's family members are exempt
from the premium requirements in section 256L.15.
new text end

new text begin Subd. 6. new text end

new text begin Cost sharing. new text end

new text begin Individuals covered under this section are subject to the
cost-sharing requirements specified in Minnesota Statutes, section 256L.03, subdivision
5, except that the ten percent coinsurance requirement for inpatient hospital services
described in section 256L.03, subdivision 5, paragraph (a), clause (1), does not apply.
new text end

new text begin Subd. 7. new text end

new text begin Managed care exemption. new text end

new text begin Individuals covered under this section are
exempt from managed care enrollment under Minnesota Statutes, section 256L.12, and
services provided shall be reimbursed on a fee-for-service basis payable exclusively with
funds from the workforce health coverage account created in section 3.
new text end

new text begin Subd. 8. new text end

new text begin Duration of coverage. new text end

new text begin Individuals are eligible for temporary
MinnesotaCare under this section for five calendar months. The five-calendar months
period begins on the first day of the month following the date the commissioner of human
services receives the eligibility information from the commissioner of employment and
economic development under subdivision 4. At the end of this period, an individual may
apply for MinnesotaCare in accordance with chapter 256L, and eligibility criteria must be
met with the exception of section 256L.07, subdivision 3.
new text end

new text begin Subd. 9. new text end

new text begin Expiration. new text end

new text begin Enrollment in temporary MinnesotaCare may not be made
under this section after July 31, 2011.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 2. new text begin WORKFORCE SUPPORT FEE.
new text end

new text begin Subdivision 1. new text end

new text begin Fee. new text end

new text begin Notwithstanding Minnesota Statutes, section 116L.20, the
special assessment under that section is suspended from January 1, 2010, until December
31, 2012. Effective January 1, 2010, there is assessed, in addition to unemployment taxes
due under Minnesota Statutes, section 268.051, a workforce support fee of .2 percent on
taxable wages. This fee is due and must be paid on the same schedule and in the same
manner as unemployment taxes under Minnesota Statutes, section 268.051. Any amount
past due under this section is subject to the same interest and collection provisions as
unemployment taxes. This fee expires on December 31, 2012.
new text end

new text begin Subd. 2. new text end

new text begin Use of funds collected. new text end

new text begin An amount equal to .1 percent on taxable wages
is deposited in the workforce development fund provided for under Minnesota Statutes,
section 116L.20, less reimbursement for one-half of the collection cost of the total amount
of the fee. An amount equal to .1 percent on taxable wages, less reimbursement for
one-half of the collection costs of the total amount of the fee, is deposited in the workforce
health coverage account created in section 3.
new text end

new text begin Subd. 3. new text end

new text begin Quarterly review and possible reduction of workforce support fee. new text end

new text begin The
commissioner of human services shall on a quarterly basis review the sufficiency of funds
in the workforce health coverage account to pay the obligations of the account. If the
commissioner determines there is an excess of funds, the commissioner shall notify the
commissioner of employment and economic development who must reduce that portion of
the workforce support fee that is for deposit in the account to a level designed to eliminate
the excess based on an evaluation of current and future labilities of the account. If the
commissioner of human services determines there is an insufficiency of funds in the
account, the commissioner shall notify the commissioner of employment and economic
development who must increase the portion of the fee for deposit in the account but not
above the level specified in subdivisions 1 and 2.
new text end

Sec. 3. new text begin WORKFORCE HEALTH COVERAGE ACCOUNT.
new text end

new text begin (a) Effective January 1, 2010, the workforce health coverage account is created as a
special account in the special revenue fund in the state treasury. This account lapses on
June 30, 2014, and any money remaining in the account on that date must be paid into the
unemployment insurance program trust fund. This account consists of all money collected
by the workforce support fee provided by section 2 and designated for deposit in this
account and all money deducted and withheld from an applicant's unemployment benefit
payment for temporary MinnesotaCare coverage under section 1 and all interest earned on
any money in this account, less reimbursement of collection costs under paragraph (d).
new text end

new text begin (b) Money in the account is appropriated to the commissioner of human services and
is allocated and may be expended only to pay for the cost of temporary MinnesotaCare
coverage under section 1.
new text end

new text begin (c) Any funds not allocated, obligated, or expended in a fiscal year are available for
allocation, obligation, and expenditure in the following fiscal year.
new text end

new text begin (d) Because the administrative cost of collection of the workforce support fee is
borne by federal money made available only to administer the unemployment insurance
program, the commissioner of employment and economic development must negotiate
with the United States Department of Labor the amount of any reimbursement for costs
related to the collection of the fee.
new text end

Sec. 4. new text begin HEALTH CARE COVERAGE DEDUCTION.
new text end

new text begin (a) An applicant for unemployment benefits who meets the eligibility requirement
for temporary MinnesotaCare coverage for unemployed workers must have the option
of electing MinnesotaCare coverage. If the applicant elects coverage and is determined
eligible for temporary MinnesotaCare, the commissioner of employment and economic
development must deduct and withhold ten percent of the applicant's weekly benefit
amount from any payment made to the applicant. The weekly benefit amount is that
amount computed under Minnesota Statutes, section 268.07, subdivision 2. This deduction
occurs after all other deductions and adjustments. If the unemployment benefit payment
prior to this deduction is insufficient to cover the ten percent cost, the payment to the
applicant for that week is reduced to zero, but the applicant is not liable for the deficiency.
new text end

new text begin (b) The amount deducted and withheld from the applicant's unemployment benefit
payment must be immediately deposited into the workforce health coverage account.
new text end

new text begin (c) The amount deducted is for all purposes considered and treated as if it were paid
to the applicant as unemployment benefits.
new text end