1.1 	A bill for an act
1.2 	relating to health; establishing a health coverage subsidy program for eligible 
1.3 	small employers and employees and dependents;proposing coding for new law 
1.4 	as Minnesota Statutes, chapter 62U.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [62U.09] SUBSIDIES FOR EMPLOYER HEALTH COVERAGE.
1.7 		Subdivision 1.Establishment of subsidy program. The commissioner of human 
1.8 	services shall establish a subsidy program for eligible employees and dependents with 
1.9 	access to employer-subsidized health coverage and eligible employers. Subsidies must be 
1.10 	available beginning July 1, 2009. For purposes of this section, employer-subsidized health 
1.11 	coverage has the meaning provided in section 256L.07, subdivision 2, paragraph (c).
1.12 		Subd. 2.Eligible employees and dependents. In order to be eligible for a subsidy 
1.13 	under this section, an employee or dependent shall:
1.14 	(1) be covered by employer-subsidized health coverage that meets the benefits set 
1.15 	and design requirements established under section 62U.04, in 2008 H. F. 3391, if enacted, 
1.16 	and is purchased through the Minnesota Health Insurance Exchange established under 
1.17 	section 62U.02, in 2008 H. F. 3391, if enacted; and
1.18 	(2) meet all eligibility criteria for the MinnesotaCare program established under 
1.19 	chapter 256L, except for the requirements related to:
1.20 	(i) no access to employer-subsidized coverage under section 256L.07, subdivision 
1.21 	2; and
1.22 	(ii) no other health coverage under section 256L.07, subdivision 3.
1.23 		Subd. 3.Amount of employee subsidy. The subsidy must equal the amount the 
1.24 	employee is required to pay for health coverage for the employee and any dependents, 
2.1 	including premiums, deductibles, and other cost sharing, minus an amount based on 
2.2 	the affordability standard specified in section 62U.08, in 2008 H. F. 3391, if enacted. 
2.3 	The maximum subsidy must not exceed the amount of the subsidy that would have been 
2.4 	provided under the MinnesotaCare program, if the employee and any dependents were 
2.5 	eligible for that program.
2.6 		Subd. 4.Payment of employee subsidy. The commissioner shall pay the subsidy 
2.7 	amount for an employee and any dependents to the Minnesota Health Insurance Exchange, 
2.8 	and this payment shall be credited toward the employee's share of premium. Any 
2.9 	additional amount paid by the commissioner to the Minnesota Health Insurance Exchange 
2.10 	that exceeds the employee's share of premium must be credited first toward the employee 
2.11 	deductible and then toward any employee cost-sharing obligation.
2.12 		Subd. 5.Eligible employer. (a) In order to be eligible for a subsidy under this 
2.13 	section, an employer must: 
2.14 	(1) meet the definition of small employer in section 62L.02, subdivision 26;
2.15 	(2) have an average hourly wage across all employees for the reporting year 
2.16 	designated by the commissioner that does not exceed 130 percent of the federal poverty 
2.17 	guidelines for a household size of four when converted to a full-time equivalent;
2.18 	(3) meet the employee participation requirement under section 62L.03, subdivision 
2.19 	3; and
2.20 	(4) contribute at least 50 percent toward the cost of coverage of each eligible 
2.21 	employee and any dependents, before any employer subsidy provided by this section.
2.22 	(b) An employer applying for or seeking renewal of a subsidy must submit to the 
2.23 	commissioner, in the form and manner specified by the commissioner, all information the 
2.24 	commissioner determines is necessary to verify eligibility under paragraph (a).
2.25 		Subd. 6.Amount and payment of employer subsidy. The subsidy for eligible 
2.26 	employers equals 25 percent of the cost of coverage of each eligible employee and any 
2.27 	dependents. The commissioner shall pay the subsidy amount to the Minnesota Health 
2.28 	Insurance Exchange on behalf of the employer. The employer is responsible for paying 
2.29 	the remaining portion of the employer share to the exchange.