HF2904

HF2904 (Legislative Session 94 (2025-2026))

Public employees insurance program regulated, participation by certain school employers required, and money appropriated.

Related bill: SF2909

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to regulate the public employees insurance program in Minnesota, focusing specifically on implementing a mandatory health insurance pool for school employees, ensuring consistent coverage options, and adjusting financial administration regarding school employers and employees.

Main Provisions

Public Employees Insurance Program: The bill establishes a statewide public employees insurance program, requiring school employers to participate in a mandatory school employee pool. This pool is intended to streamline and standardize health insurance coverage for all school employees.
Educator Group Insurance Program: A separate educator group insurance program is established, requiring input and management by a labor-management committee. This committee is tasked with studying insurance program issues like flexible benefits and cost efficiency.
School Employee Pool: All school employees are mandated to receive insurance through this pool starting January 1, 2027. This aligns existing contracts to the new program requirements.
Participation and Contribution: The bill dictates specific participation timelines for school employers and prescribes the proportion of premiums paid by employers and employees. School districts must contribute 85% for family premiums and 95% for single premiums toward the highest-value plan.

Significant Changes to Existing Law

Mandatory Participation: School employers must participate in the mandatory school employee pool, with detailed procedures and timelines for transition.
Employer Contributions and Financial Management: The bill specifies financial responsibilities for school districts in contributing to employees' insurance premiums, and introduces potential surcharges for program startup costs.
Regulation of Broker Commissions: Prohibits school employers from using public funds for broker commissions related to the implementation and ongoing use of health insurance programs.
Eligibility and Enrollment: Provides specific guidelines on eligibility, notification, and enrollment for both active and retired employees, ensuring continuity of coverage even during strikes or other employment changes.
Administrative Adjustments: Establishes new responsibilities for the commissioner and school employers, including reporting requirements and the management of reserve funds from self-insured plans.

Relevant Terms

Public employees insurance program
School employee pool
Educator group insurance program
Labor-management committee
Health insurance premium contributions
Mandatory participation
Broker commissions
Collective bargaining
High-deductible plans

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 26, 2025	House	Floor	Action	Introduction and first reading, referred to	State Government Finance and Policy
March 31, 2025	House	Floor	Action	Authors added

Citations

[
  {
    "analysis": {
      "added": [
        "Definitions for various terms like Commissioner, Employee, Eligible employer, etc., have been detailed."
      ],
      "removed": [],
      "summary": "The section 43A.316 includes amendments regarding definitions related to the public employees insurance program.",
      "modified": [
        "Clarification on definitions of various terms such as 'Commissioner', 'Eligible employer', etc."
      ]
    },
    "citation": "43A.316",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cited in defining 'employee' within public employee insurance program eligibility.",
      "modified": [
        "Clarification on what constitutes a 'public employee' in terms of insurance eligibility."
      ]
    },
    "citation": "179A.03",
    "subdivision": "subdivision 14"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cited in defining 'eligible employer' within the public employee insurance context.",
      "modified": [
        "Clarification on what entities qualify as 'eligible employers'."
      ]
    },
    "citation": "179A.03",
    "subdivision": "subdivision 15"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cited in relation to defining 'exclusive representative'.",
      "modified": [
        "Clarity on who serves as an 'exclusive representative'."
      ]
    },
    "citation": "179A.03",
    "subdivision": "subdivision 8"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Referenced with respect to the coordination of benefits provided to the spouse of a deceased employee.",
      "modified": []
    },
    "citation": "62A.146",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference regarding the consequences for failure to pay premiums.",
      "modified": []
    },
    "citation": "127A.42",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Referenced concerning the dissolution of self-insured plans by school employers.",
      "modified": []
    },
    "citation": "471.617",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Referenced concerning service cooperatives involved in health insurance provisions.",
      "modified": []
    },
    "citation": "123A.21",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Referenced concerning cooperative centers for vocational education.",
      "modified": []
    },
    "citation": "123A.22",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Referenced concerning intermediate districts within the scope of public employee insurance.",
      "modified": []
    },
    "citation": "136D.01",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Referenced in context with continuation rights for insurance coverage.",
      "modified": []
    },
    "citation": "471.61",
    "subdivision": "subdivision 2b"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Referenced in the context of eligibility disputes for public employee insurance.",
      "modified": []
    },
    "citation": "8.07",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Referenced in the context of maintaining benefits during strikes.",
      "modified": []
    },
    "citation": "179A.18",
    "subdivision": ""
  }
]