HF4472

Purpose

This bill adds a new requirement to collect detailed information about health insurance for school districts and charter schools. It tasks the Legislative Budget Office (LBO) with gathering and publishing data on health insurance costs, plans, and administration to inform state budgeting and oversight.

What the bill would require

• Annual health insurance survey

  • By July 1 each year, the Legislative Budget Office must send a health insurance survey to every school district and charter school.
  • Districts and charter schools must return the survey by September 1.
  • The survey must use data from the most recent fiscal year.

• Required data elements

  • Total number of employees participating in the group health insurance, with subcategories:
  • Salaried employees
  • Nonsalaried or hourly employees
  • Retirees or others who continue coverage after employment ends
  • Number of employees not participating in the health plan
  • Total number of insured persons covered by the health plan
  • Total premiums paid by the district or charter school (excluding employee contributions)
  • Amounts contributed by the district or charter school to individual coverage health reimbursement arrangements (ICHRA)
  • Amounts employees paid in health insurance premiums
  • Direct or indirect compensation paid to brokers or agents (fees, commissions, incentives, etc.)
  • Names of entities providing group health insurance and each contract’s expiration date
  • For each type of health plan offered:
  • Plan name and actuarial value using the minimum value calculator (per bid proposals and applicable federal rules)
  • Plan data by single, family, or two-party coverage if offered
  • Monthly district contributions per employee group per plan (including ICHRA contributions)
  • Employee premium amounts per month for the plan
  • Plan design details, including:
    • In-network deductibles
    • In-network out-of-pocket limits
    • Out-of-network limits
    • Copayments
    • Employee coinsurance
    • Prescription annual out-of-pocket maximum (if separate)
    • Costs for prescription levels (tiers 1–3)
  • Total annual contributions to ICHRA or health savings accounts (HSAs), excluding amounts contributed to other accounts
  • Total amount charged by the health insurance provider as an administrative fee and the rate of that fee

• Data handling and public reporting

  • The LBO must compile the survey data and issue a report by December 1 each year to the chairs and ranking minority members of the education and health insurance committees.
  • The LBO must post the report, an executive summary, and all underlying data on its public website in a standardized format.

• Compliance and enforcement

  • If a district or charter fails to complete the annual survey or provide the required information, the LBO or another person may seek to compel compliance through established legal processes.

How this changes current law

• Creates a new subdivision (9) in Minnesota Statutes 2024, section 471.6161, to require school districts and charter schools to report comprehensive health insurance data annually.
• Adds a formal process for the LBO to collect, publish, and standardize data, and to enforce compliance.

Fiscal impact and funding

• Sec 2 appropriates from the general fund to the Legislative Budget Office for fiscal year 2027 to complete the annual report required by section 1.
• The appropriation base continues in fiscal year 2028 and each year thereafter, making ongoing funding for this reporting activity.

Timing overview

• Annual cycle:
  • July 1: LBO sends survey to districts/charters
  • September 1: Survey due back to LBO
  • December 1: LBO publishes annual report and data
• All data posted publicly in a standardized format on the LBO website

Relevant terms section follows.

Relevant Terms - annual health insurance survey - Legislative Budget Office (LBO) - school districts and charter schools - group health insurance - health plan / health insurance contracts - third-party administrator (TPA) - health reimbursement arrangement (ICHRA) - health savings account (HSA) - administrative fee - actuarial value - minimum value calculator - CFR 45.156.145 - in-network / out-of-network deductibles and limits - in-network/out-of-network copays and coinsurance - prescription costs by formulary tier (tiers 1–3) - single / family / two-party plans - contract expiration date - standardized data format - public posting / executive summary - compliance enforcement (sections 13.08(4) and 13.085) - appropriation (general fund; FY2027; FY2028 onward)