HF4821

Purpose

This bill has two main areas: (1) change how state agencies handle very small cash payments, and (2) update how certain state health insurance benefits for employees are planned, priced, and offered, including a potential option for high-deductible health plans.

Key Provisions

• Cash transaction rounding (Section 1)

  • Agencies may round cash payments in transactions to simplify cents handling.
  • Rounding rules:
  • If the total ends with 1, 2, 6, or 7 cents, round down to the nearest amount divisible by 5.
  • If the total ends with 3, 4, 8, or 9 cents, round up to the nearest amount divisible by 5.
  • If the total ends with 0.01 or 0.02, round up to 0.05.
  • Rounding applies only to cash transactions and does not apply to electronic fund transfers, checks, gift cards, money orders, credit cards, or other similar payment methods.
  • Agencies must have a posted policy describing how rounding will work, and the policy must be available at every location where cash transactions occur.
  • An employee or agent handling the transaction may apply the rounding rules as directed by the agency.

• Health insurance benefit plan changes (Section 2)

  • The state commissioner may request proposals, negotiate, and enter into contracts with providers to deliver health benefit services. These contracts are not subject to certain requirements in existing procurement laws (sections 16C.16 to 16C.19).
  • The commissioner can negotiate premium rates and coverage, considering factors like cost, plan options, provider networks, and the carrier’s capabilities and financial position.
  • Contracts must run for at least one year and may automatically renew unless either party gives notice to terminate.
  • Carriers licensed under chapter 62A are exempt from specific state premium taxes on premiums paid by the state.
  • Self-insured hospital and medical service products must meet coverage mandates, data reporting, and consumer protection standards that apply to licensed carriers (including related chapters on coverage requirements and reporting).
  • Self-insured products that limit coverage to a provider network or that vary by network vs. non-network must comply with relevant rules about geographic access standards and network adequacy.
  • Self-insured health plans offered under the nonrepresented employees plan (43A.18, subd. 2) and the managerial plan (43A.18, subd. 3) must extend dependent coverage to eligible employees’ children to the extent required by state law, including disabled children and dependent grandchildren as defined in related statutes.
  • Beginning January 1, 2010, these health plans may include an option for a high-deductible health plan (HDHP) that aligns with the IRS definition in Section 223 of the Internal Revenue Code.

Significant Changes to Existing Law

• Cash handling: Introduces a formal, explicit rounding scheme for cash transactions in state agencies and requires posting of a rounding policy. It also clarifies that rounding does not apply to most non-cash payment methods.
• Health benefit contracts: Provides the commissioner with broader authority to seek and negotiate health plan contracts outside some traditional procurement rules, with flexibility on premium rates and plan terms.
• Self-insured plan requirements: Expands the application of coverage mandates, data reporting, consumer protections, and network/geographic access standards to self-insured plans, aligning them with rules for insured plans.
• Dependent coverage: Strengthens/deepens requirements for dependent coverage for self-insured plans, ensuring dependents (including certain disabled children and grandchildren) receive coverage as required by related law.
• HDHP option: Adds the ability to offer a high-deductible health plan option within certain state employee health plans starting in 2010.

Timeline Note

• The HDHP option is referenced as starting January 1, 2010. Other provisions (like rounding rules) become effective per agency policy and related regulatory processes, not on a fixed date in the text provided.

Relevant Terms cash transaction rounding; final digit; round down; round up; nearest multiple of 5; 0.05; electronic fund transfer; EFT; policy posting; health insurance benefit plans; nonrepresented employees compensation plan; managerial plan; 43A.23; self-insured; coverage mandates; data reporting; consumer protection; network of providers; nonnetwork; geographic access standards; HMO; 62A; 62J; 62M; 62Q; 62D; dependent coverage; dependent child; disabled child; high-deductible health plan; HDHP; Internal Revenue Code Section 223.