1.1                          A bill for an act 
  1.2             relating to human services; providing coverage options 
  1.3             for children eligible for employer-subsidized health 
  1.4             insurance; proposing coding for new law in Minnesota 
  1.5             Statutes, chapter 256L. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [256L.075] [EMPLOYER-SUBSIDIZED INSURANCE 
  1.8   OPTION.] 
  1.9      Subdivision 1.  [FEDERAL APPROVAL.] (a) Upon federal 
  1.10  approval of all necessary waivers and state plan proposals to 
  1.11  obtain children's health insurance program matching funds under 
  1.12  title XXI of the Social Security Act for children ages two to 18 
  1.13  who are ineligible for MinnesotaCare because of the availability 
  1.14  of employer-subsidized health insurance, paragraphs (b) and (c) 
  1.15  become effective. 
  1.16     (b) The employer-subsidized health insurance provisions of 
  1.17  section 256L.07, subdivision 2, shall not apply to children ages 
  1.18  two to 18 in families with income over 150 percent of the 
  1.19  federal poverty guidelines but no greater than 200 percent of 
  1.20  the federal poverty guidelines who are otherwise eligible for 
  1.21  coverage under this chapter. 
  1.22     (c) Premiums under the sliding fee scale of section 
  1.23  256L.15, subdivision 2, shall not exceed five percent of gross 
  1.24  family income for children in families with income at or below 
  1.25  200 percent of the federal poverty guidelines. 
  2.1      Subd. 2.  [COVERAGE OPTIONS.] (a) Children ages two to 18 
  2.2   not otherwise eligible for MinnesotaCare but for subdivision 1, 
  2.3   paragraph (b), may enroll in the MinnesotaCare program or the 
  2.4   family may opt to use a subsidy to purchase employer-subsidized 
  2.5   health insurance according to this subdivision.  The subsidy is 
  2.6   equal to the MinnesotaCare capitation payment for the eligible 
  2.7   children minus the MinnesotaCare premium for the children, if 
  2.8   enrolled in MinnesotaCare, up to the amount of the employee's 
  2.9   share of the premium for dependent coverage. 
  2.10     (b) The commissioner shall reimburse families who choose 
  2.11  the subsidy option under this subdivision upon proof of payment 
  2.12  of the employee's share of the dependent coverage. 
  2.13     (c) Families choosing the subsidy option acknowledge and 
  2.14  accept the benefits and cost-sharing requirements of the 
  2.15  employer-subsidized coverage. 
  2.16     (d) Coverage under this section remains in effect for 12 
  2.17  months from the date of initial enrollment as long as the 
  2.18  employer-subsidized health insurance coverage remains available 
  2.19  to the employee. 
  2.20     Sec. 2.  [EFFECTIVE DATE.] 
  2.21     Section 1 is effective 90 days after receipt of all 
  2.22  necessary federal approval or July 1, 2001, whichever is later.