Senate Counsel, Research
and Fiscal Analysis
Minnesota Senate Bldg.
95 University Avenue W. Suite 3300
St. Paul, MN 55155
(651) 296-4791
Alexis C. Stangl
Director
   Senate   
State of Minnesota
 
 
 
 
 
S.F. No. 247 - Employer Participation in Selection of Public Employees Insurance Program; Local Government Health Insurance Plan Changes (First Engrossment)
 
Author: Senator Gary H. Dahms
 
Prepared By:
 
Date: April 19, 2011



 
   OVERVIEW 
 
This bill changes procedures to determine local government unit participation in the Public Employees Insurance Program (PEIP). PEIP is an optional statewide health, dental, and life insurance pool administered on behalf of local units of government by Minnesota Management and Budget. The bill will require employer approval of the decision to participate, in addition to the existing requirement for the selection of PEIP by exclusive representatives of employees.  Before the decision to participate is made final, it must be approved by a majority vote of all insurance eligible employees of the appropriate bargaining unit.
 
 
Section-by-Section Summary
 
 
Section 1 [Public Employee Participation.] Currently, each exclusive representative determines whether the employees it represents will participate in PEIP. This section provides that a decision to participate in PEIP will be made as follows:
 
(1)   the eligible employee and the exclusive representative agree to the change; and
 
(2)   a majority of all insurance eligible employees in the appropriate bargaining unit approve the change.
 
This section also requires that either all or none of the insurance eligible employees of the appropriate bargaining unit for the local unit of government must participate in the program. In addition, this section reduces automatic renewal in PEIP to a one-year term, unless 30 days’ notice is given before the end of the participation period. This section requires the PEIP program to provide each enrolled entity with the entity’s monthly claims data when requested. 
 
Section 2 [Coordination.] specifies that a local unit of government allowing a retired employee to continue health insurance coverage within the plan offered by the local unit of government must provide coverage that is coordinated with Medicare benefits.
 
TSB/rdr 

 

 
Check on the status of this bill
 
Back to Senate Counsel and Research Bill Summaries page
 

 
This page is maintained by the Office of Senate Counsel, Research, and Fiscal Analysis for the Minnesota Senate.
 
Last review or update: 04/19/2011
 
If you see any errors on this page, please e-mail us at webmaster@senate.mn