SF2685

Purpose of the Bill

The bill aims to provide financial protection for high school students participating in extracurricular athletic activities sponsored by the Minnesota State High School League. It focuses on establishing catastrophic accident insurance and includes provisions for catastrophic injury payments.

Main Provisions

• Catastrophic Accident Insurance Requirement: The Minnesota State High School League (MSHSL) must procure catastrophic injury insurance policies for students. These policies are to cover students involved in league-sponsored sports and activities.

• Coverage Details:

  • A minimum of $10,000,000 in lifetime coverage per catastrophic injury is mandated.
  • A deductible of $50,000 per injury is required.
  • Insurance must cover medical care, personal care, medications, vehicles, and wheelchairs related to the injury.
  • Insurance must not deny claims for items or services recommended by the student's healthcare provider.

• Beneficiaries: The policy covers student athletes, managers, trainers, and cheerleaders participating in high school competitions, including ninth-grade students.

Significant Changes

• Catastrophic Injury Payments: The MSHSL is obligated to make specific payments to two former high school athletes who suffered catastrophic injuries. These payments are meant to cover expenses not addressed by either the MSHSL's insurance policy or the athletes' private insurance.

• Timeframe for Payments: The payments are set to take place between December 31, 2025, and January 1, 2027.

• Income Tax Implications: Payments made under this provision are eligible for a subtraction from income, as described in Minnesota Statutes, ensuring they are not considered taxable income.

Relevant Terms

• Catastrophic accident insurance
• Minnesota State High School League (MSHSL)
• Extracurricular athletic activities
• Catastrophic injury payments
• Lifetime coverage
• Insurance deductible
• Medical and personal care coverage