471.617 SELF-INSURANCE OF EMPLOYEE HEALTH BENEFITS.
Subdivision 1. If more than 100 employees; conditions.
A statutory or home rule charter
city, county, school district, or instrumentality thereof which has more than 100 employees, may
by ordinance or resolution self-insure for any employee health benefits including long-term
disability, but not for employee life benefits. Any self-insurance plan shall provide all benefits
which are required by law to be provided by group health insurance policies. Self-insurance plans
must be certified as provided by section
and must be filed and certified by the Department
of Commerce before they are issued or delivered to any person in this state.
Subd. 2. Jointly.
Any two or more statutory or home rule charter cities, counties, school
districts, or instrumentalities thereof which together have more than 100 employees may jointly
self-insure for any employee health benefits including long-term disability, but not for employee
life benefits, subject to the same requirements as an individual self-insurer under subdivision 1.
Self-insurance pools under this section are subject to section
. A self-insurance pool
established and operated by one or more service cooperatives governed by section
provide coverage described in this subdivision qualifies under this subdivision. The commissioner
of commerce may adopt rules pursuant to chapter 14, providing standards or guidelines for the
operation and administration of self-insurance pools.
Subd. 3. Stop-loss coverage.
Any self-insurance plan covering fewer than 1,000 employees
shall include excess or stop-loss coverage provided by a licensed insurance company, an insurance
company approved pursuant to sections
, or service plan corporation, but
excess or stop-loss coverage need not be obtained for long-term disability.
This excess or stop-loss coverage shall cover all eligible claims incurred during the term
of the policy or contract. In addition to excess or stop-loss coverage, the self-insurance plan
shall provide for reserving of an appropriate amount of funds to cover the estimated cost of
claims incurred, but unpaid, during the term of the policy or contract which shall be added to the
expected claim level. These funds shall be in addition to funds reserved to cover the claims paid
during the term of the policy or contract. The excess or stop-loss coverage shall be provided at
levels in excess of self-insured retention which is appropriate, taking into account the number of
covered persons in the group.
Subd. 4. Exclusive representative.
(a) No statutory or home rule charter city or county or
school district or instrumentality of any of them shall adopt a self insured health benefit plan
for any employees represented by an exclusive representative certified pursuant to section
without prior notification and consultation on ten days' written notice to the exclusive
representative and agreement by the exclusive representative that represents the largest number of
employees to be included in the plan.
(b) Prior to a decision to dissolve any self-insurance, trust fund, or dedicated insurance fund
created by a single statutory or home rule charter city, county, school district, or instrumentality
of any of them, either by ordinance or resolution, the employer must provide 30 days' written
notice to each exclusive representative of employees and each individual currently receiving
health benefits, and also obtain approval for the proposed action by the exclusive representative
that represents the largest number of employees included in the plan. All assets from the trust
fund must be audited before closure, and remaining assets must be dedicated for use for health
insurance benefits for all individuals currently receiving health benefits. This paragraph does not
apply to joint self-insurance trusts or pools.
(c) The assets or liabilities of a joint self-insurance trust or pool that is dissolved must
be distributed to members of the joint trust or pool in accordance with the joint trust or pool
agreement, if any.
Subd. 4a. May choose, pay for insurance.
A statutory or home rule charter city, county,
school district, or instrumentality of any of these entities with a self-insurance health benefit plan,
may, upon request of the exclusive representative of its employees as certified pursuant to section
, allow the employees of the exclusive representative to enroll, at their own expense,
in the health insurance benefit plan.
Subd. 5. Nondisclosure of claims; exception.
No political subdivision or its employee or
agent shall disclose any information about individual claims or total claims of an individual
without the consent of the individual, except that the information may be disclosed to officers,
employees, or agents of the political subdivision to the extent necessary to enable them to perform
their duties in administering the health benefit program. This provision shall not prevent the
disclosure of aggregate claims for the group without identification of any individual.
A parent or legal guardian of a minor is authorized to act on behalf of the minor in the
disclosure of a record.
Subd. 6. Pre-8/1/1980 plans.
A statutory or home rule charter city or county or school
district, or instrumentality thereof having a self insured health benefit plan on August 1, 1980,
may continue to operate that plan notwithstanding that the plan does not meet the minimum
employee group size requirement of subdivision 1.
History: 1980 c 528 s 3; 1Sp1981 c 4 art 2 s 44,47; 1982 c 424 s 130; 1983 c 241 s 9-11;
1983 c 289 s 114 subd 1; 1984 c 462 s 27; 1984 c 655 art 1 s 92; 1987 c 384 art 2 s 1; 1993 c
13 art 1 s 41; 1993 c 215 s 1; 1995 c 233 art 2 s 56; 1996 c 446 art 3 s 2; 1997 c 117 s 1; 1998
c 397 art 11 s 3; 2001 c 215 s 40