HF2904

HF2904 (Legislative Session 94 (2025-2026))

Public employees insurance program regulated, participation by certain school employers required, and money appropriated.

Related bill: SF2909

AI Generated Summary

Purpose of the Bill

This bill aims to regulate the public employees insurance program in Minnesota, specifically targeting participation requirements for certain school employers. It also includes provisions for funding the changes and creating new laws in relation to school employees' health insurance.

Main Provisions

Public Employees Insurance Program Management: The bill mandates the commissioner of management and budget to oversee the public employee insurance program and an educator group insurance program. This includes determining funding, coverage, and administrative arrangements.
Mandatory Participation for School Employers: Starting January 1, 2027, all school employees will be required to join a mandatory school employee health insurance pool. This requires school employers to provide necessary information about their employees to the program administrators.
Establishment of Educator Group Insurance Program: The bill establishes a mandatory insurance pool for educators, indicating specific contributions from school districts towards insurance premiums, with 85% of family premiums and 95% of single premiums covered by the school district for the highest value plan.
Additional Funding and Transition: Schools with existing individual insurance plans must redistribute unused reserves if they dissolve those plans. A reserve surcharge may be imposed initially to support the program's startup.
Collective Bargaining Rights: The bill allows for collective bargaining agreements to exceed the minimum standards and requirements set in the bill, respecting more generous health plans.

Significant Changes to Existing Law

Repeal of Certain Statutory Provisions: The bill proposes repealing existing sections of the Minnesota Statutes that conflict with the new requirements for school employee insurance pools.
New Requirements for Coverage and Participation Terms: School districts will now have defined responsibilities and timelines for entering employees into the new insurance pool, with penalties for non-compliance.
Funding for Additional Premium Costs: The bill provides eligibility for districts to receive additional funds if they incur higher premium costs due to the new insurance program requirements.

Relevant Terms

Public employees insurance program
School employee pool
Educator group insurance program
Health insurance premiums
Collective bargaining
Mandatory participation
Reserve surcharge
Broker commissions
Health care savings account/health reimbursement arrangement

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 26, 2025	House	Floor	Action	Introduction and first reading, referred to	State Government Finance and Policy
March 31, 2025	House	Floor	Action	Authors added
April 06, 2025	House	Floor	Action	Author added
April 09, 2025	House	Floor	Action	Author added

Citations

[
  {
    "analysis": {
      "added": [
        "Terms and definitions for the implementation of a new insurance plan."
      ],
      "removed": [
        ""
      ],
      "summary": "Definitions section for the public employee insurance program as previously outlined in section 43A.316.",
      "modified": [
        "Clarifies who qualifies as an eligible employer and employee."
      ]
    },
    "citation": "43A.316",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Defines public employment terms relevant to the insurance program described in section 179A.03.",
      "modified": [
        "Enhances the definition of a 'public employee' eligible for new insurances."
      ]
    },
    "citation": "179A.03",
    "subdivision": "subdivision 14"
  },
  {
    "analysis": {
      "added": [
        "Inclusion of schools and education-related bodies."
      ],
      "removed": [
        ""
      ],
      "summary": "Defines eligible employers in the context of public service under section 179A.03.",
      "modified": [
        "Broadens who may be considered an eligible employer."
      ]
    },
    "citation": "179A.03",
    "subdivision": "subdivision 15"
  },
  {
    "analysis": {
      "added": [
        "New provisions for modeling new programs."
      ],
      "removed": [
        ""
      ],
      "summary": "References to existing program models for public employee insurance plans under section 43A.18.",
      "modified": [
        "Aligns new programs with previously established frameworks."
      ]
    },
    "citation": "43A.18",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        "Inclusion of new employee categories eligible for coverage."
      ],
      "removed": [
        ""
      ],
      "summary": "Details rights to participation for certain public employees receiving specific pensions.",
      "modified": [
        "Clarifies coverage eligibility for public employees under multiple plans."
      ]
    },
    "citation": "423C",
    "subdivision": ""
  }
]