SF4464

Purpose

This bill would require that peace officers and firefighters who are disabled in the line of duty continue to receive employer-paid health insurance coverage. It applies when a employee is determined eligible for a duty disability benefit (or qualifies under related rules) and would otherwise leave or reduce public service. The goal is to ensure ongoing health coverage for the officer or firefighter and their dependents after a line-of-duty disability.

Who is Covered

• Peace officers and firefighters who are determined eligible for a duty disability benefit under:
  • PERA (Public Employees Retirement Association) rules (section 353.656), or
  • MSRS (Minnesota State Retirement System) rules (section 352B.10), or
  • Local police or salaried firefighters relief associations and meet duty disability terms.
• Those who have discontinued public service due to a disabling injury and meet the duty disability criteria.

How Coverage Works

• The employee or their representative must request continued health insurance coverage from the appropriate retirement system’s executive director.
• The decision on coverage is binding on the employee’s employer and the state, and the notice must explain the reasons.
• If the decision is issued by the MSRS executive director, the employee may petition for a review as a contested case before the Office of Administrative Hearings (OAH). The employee and employer typically bear the cost of a contest.
• If a review is not requested within 60 days, the right to contest is lost for issues already determined.

Appeals and Review

• A contested case can be reviewed before the Office of Administrative Hearings, and the judge’s decision is a final decision and order at the fact-finding stage.
• Final determinations from OAH may be reviewed only by a writ of certiorari to the Minnesota Court of Appeals.
• Standing for judicial review is limited to the peace officer or firefighter, their employer, and the state.

Health Coverage Duration and Dependents

• The employer must continue to provide and pay for health insurance coverage for the officer or firefighter and their dependents if coverage was in place at the time of injury.
• The duration of continued employer contributions varies by category:
  • For some pre-enactment or earlier cases, coverage continues until the officer/firefighter reaches age 65 (or would have reached 65 if not for the disability), and for dependents as applicable.
  • For those approved after May 24, 2025, coverage generally lasts up to 60 months (5 years) or until age 65, whichever comes first; dependents’ coverage lasts for the same period.
  • If disability benefits are not total and permanent (and not a specific described category), the employer continues to pay for health coverage for the officer/firefighter and dependents for the specified period (60 months or until 65, as applicable).
  • If benefits were approved under 352B.10 (line-of-duty disability) or similar provisions, coverage continues until age 65 (for officer/firefighter and dependents).
• The employer is not required to continue coverage for dependents after they are no longer dependents.
• An officer/firefighter may waive health coverage, but cannot receive payment or other consideration from the employer in exchange for the waiver. Any pre-enactment waiver agreements are not invalidated, but new waivers for coverage under this section must adhere to the rule.

No Right to Challenge Coverage After Disability Decision

• Once a duty disability determination is made, the employer loses the right to challenge and is prohibited from challenging the continuation and payment of health coverage under this section.

Other Notable Provisions

• The determination process includes notices with reasons and, if applicable, an opportunity to request a contested case before OAH (with cost-sharing rules).
• The section that describes determinations “not subject to” certain standard review provisions means these disability determinations are binding for purposes of continued coverage.

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Relevant Terms - duty disability benefit - health insurance coverage - employer contribution - Public Employees Retirement Association (PERA) - Minnesota State Retirement System (MSRS) - 353.656 - 352B.10 - 353.01 - 356.96 - Office of Administrative Hearings (OAH) - contested case - writ of certiorari - Minnesota Court of Appeals - psychological condition (not solely basis for certain disability determinations) - age 65 - dependents - relief associations (local police or salaried firefighters) - binding determination - presumption of continued coverage - waivers of coverage