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43A.318 PUBLIC EMPLOYEES GROUP LONG-TERM CARE INSURANCE PROGRAM.
    Subdivision 1. Definitions. (a) Scope. For the purposes of this section, the terms defined
have the meaning given them.
(b) Advisory committee; committee. "Advisory committee" or "committee" means the
committee created under subdivision 3.
(c) Committee member; member. "Committee member" or "member" means a person
serving on the advisory committee created under subdivision 3.
(d) Eligible person. "Eligible person" means:
(1) a person who is eligible for insurance and benefits under section 43A.24;
(2) a person who at the time of separation from employment was eligible to purchase
coverage at personal expense under section 43A.27, subdivision 3, regardless of whether the
person elected to purchase this coverage;
(3) a spouse of a person described in clause (1) or (2), regardless of the enrollment status
in the program of the person described in clause (1) or (2); or
(4) a parent of a person described in clause (1), regardless of the enrollment status in the
program of the person described in clause (1).
(e) Program. "Program" means the statewide public employees long-term care insurance
program created under subdivision 2.
(f) Qualified vendor. "Qualified vendor" means an entity licensed or authorized to
underwrite, provide, or administer group long-term care insurance benefits in this state.
    Subd. 2. Program creation; general provisions. (a) The commissioner may administer a
program to make long-term care coverage available to eligible persons. The commissioner may
determine the program's funding arrangements, request bids from qualified vendors, and negotiate
and enter into contracts with qualified vendors. Contracts are not subject to the requirements of
section 16C.16 or 16C.19. Contracts must be for a uniform term of at least one year, but may be
made automatically renewable from term to term in the absence of notice of termination by either
party. The program may not be self-insured until the commissioner has completed an actuarial
study of the program and reported the results of the study to the legislature and self-insurance has
been specifically authorized by law.
(b) The program may provide coverage for home, community, and institutional long-term
care and any other benefits as determined by the commissioner. Coverage is optional. The
enrolled eligible person must pay the full cost of the coverage.
(c) The commissioner shall promote activities that attempt to raise awareness of the need for
long-term care insurance among residents of the state and encourage the increased prevalence of
long-term care coverage. These activities must include the sharing of knowledge gained in the
development of the program.
(d) The commissioner may employ and contract with persons and other entities to perform
the duties under this section and may determine their duties and compensation consistent with
this chapter.
(e) The benefits provided under this section are not terms and conditions of employment as
defined under section 179A.03, subdivision 19, and are not subject to collective bargaining.
(f) The commissioner shall establish underwriting criteria for entry of all eligible persons
into the program. Eligible persons who would be immediately eligible for benefits may not enroll.
(g) Eligible persons who meet underwriting criteria may enroll in the program upon hiring
and at other times established by the commissioner.
(h) An eligible person enrolled in the program may continue to participate in the program
even if an event, such as termination of employment, changes the person's employment status.
(i) Participating public employee pension plans and public employers may provide automatic
pension or payroll deduction for payment of long-term care insurance premiums to qualified
vendors contracted with under this section.
(j) The premium charged to program enrollees must include an administrative fee to cover all
program expenses incurred in addition to the cost of coverage. All fees collected are appropriated
to the commissioner for the purpose of administrating the program.
    Subd. 3. Advisory committee. (a) The committee consists of:
(1) the executive directors or designees of the Minnesota State Retirement System, the Public
Employees Retirement Association, and the Teachers Retirement Association;
(2) one member of the Investment Advisory Committee of the State Board of Investment
provided under section 11A.08 appointed by the board;
(3) one staff member of the Department of Human Services appointed by the commissioner
of human services;
(4) one staff member of the Department of Commerce appointed by the commissioner of
commerce;
(5) one member of the medical community with clinical knowledge of long-term care
appointed by the commissioner of employee relations; and
(6) six members representing the interests of eligible persons, including exclusive
representatives of employees as defined by section 179A.03, subdivision 8, and unrepresented
employees appointed by the commissioner of employee relations.
(b) Appointment to and removal from the committee must be in the manner provided in
section 15.059.
(c) The members of the committee described in paragraph (a), clauses (1) to (5), serve
without term limits. The terms of members described in paragraph (a), clause (6), are governed by
section 15.059, subdivision 2.
(d) Members serve without compensation, but are eligible for reimbursement of expenses in
the same manner and amount as authorized under section 43A.18, subdivision 2.
(e) The committee shall advise the commissioner on program issues, including, but not
limited to, benefits, coverage, funding, eligibility, enrollment, underwriting, and marketing.
    Subd. 4. Long-term care insurance trust fund. (a) The long-term care insurance trust fund
in the state treasury consists of deposits of the premiums received from persons enrolled in the
program. All money in the fund is appropriated to the commissioner to pay premiums, claims,
refunds, administrative costs, and other related service costs. The commissioner shall reserve an
amount of money sufficient to cover the actuarially estimated costs of claims incurred but unpaid.
The trust fund must be used solely for the purpose of the program.
(b) The State Board of Investment shall invest the money in the fund according to section
11A.24. Investment income and losses attributable to the fund must be credited to or deducted
from the fund.
    Subd. 5. Private sources. This section does not prohibit or limit individuals or local
governments from purchasing long-term care insurance through other private sources.
History: 1999 c 250 art 1 s 78; 2001 c 94 s 1

Official Publication of the State of Minnesota
Revisor of Statutes