SF2909

SF2909 (Legislative Session 94 (2025-2026))

Public employees insurance program participation by certain school employers requirement

Related bill: HF2904

AI Generated Summary

Purpose of the Bill

This legislative bill aims to reform the insurance program for public employees in Minnesota, with a specific focus on mandating participation in a statewide insurance pool for school employees. The goal is to streamline and potentially lower insurance costs through a collective approach while ensuring adequate coverage for all eligible school employees and retirees.

Main Provisions

Mandatory School Employee Pool: The bill establishes a mandatory health insurance pool for all eligible school employees, including those employed by charter schools, service cooperatives, and education units organized under joint powers agreements.
Statewide Public Employee Insurance Program: The commissioner of management and budget will administer both the existing public employee insurance program and the proposed educator group insurance program.
Labor Management Committee: A 12-member committee will be created to oversee insurance program issues and changes, ensure fair cost-sharing, and enhance the program’s quality and efficiency.
Premium Contributions: School districts must contribute a specified percentage (85% for family premiums, 95% for single premiums) towards employee health plans. Employers will negotiate any remaining costs with employee representatives.
School Employer Responsibilities: School employers are required to submit employee information to the mandatory pool administrators and manage transitions from previous plans.

Significant Changes to Existing Law

Removal of Current Subdivisions: The bill proposes repealing certain subdivisions and implementing new ones to accommodate the transition to a unified insurance pool for school employees.
Funding and Administration Adjustments: The commissioner can impose a reserve surcharge initially if needed to support the transition and sustainability of the new insurance pool. Existing funds and liabilities from self-insured plans must be addressed and integrated into the new system.
Prohibition on Broker Commissions: School employers may no longer use public resources to pay for broker commissions related to the implementation and use of health insurance benefits under the mandatory pool.
Aid for Additional Costs: A provision allows school districts to apply for aid to cover any increased premium costs resulting from the implementation of this insurance program.

Relevant Terms

public employees insurance program
school employee insurance pool
collective bargaining
health insurance premiums
educator group insurance
labor management committee
insurance coverage tiers
reserve surcharge
broker commissions

Bill text versions

Introduction PDF file
Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 23, 2025	Senate	Floor	Action	Introduction and first reading
March 23, 2025	Senate	Floor	Action	Referred to	Education Policy
March 31, 2025	Senate	Floor	Action	Author added
April 01, 2025	Senate	Floor	Action	Author added

Citations

[
  {
    "analysis": {
      "added": [
        "New definitions for 'school employer', 'school employee', and related terms."
      ],
      "removed": [],
      "summary": "This bill modifies the definitions under the public employees insurance program section 43A.316.",
      "modified": [
        "Clarified definitions of 'eligible employer' and 'exclusive representative'."
      ]
    },
    "citation": "43A.316",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        "Offer of a high-deductible plan compatible with health care savings accounts."
      ],
      "removed": [],
      "summary": "This legislation amends the administration of the public employee insurance program.",
      "modified": [
        "Adjustments to dependent coverage tiers offered to school employers."
      ]
    },
    "citation": "43A.316",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        "Rules for school employer and employee participation."
      ],
      "removed": [],
      "summary": "This amendment updates participation conditions in the public employee insurance program.",
      "modified": [
        "Clarified terms for participation renewal and withdrawal."
      ]
    },
    "citation": "43A.316",
    "subdivision": "subdivision 5"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Amendments to how premiums are handled under the public employee insurance program.",
      "modified": [
        "Process for premium payment responsibilities when bargaining agreements are not finalized."
      ]
    },
    "citation": "43A.316",
    "subdivision": "subdivision 7"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Modifications to continuation of coverage rules under the public employee insurance program.",
      "modified": [
        "Clarified rules for policy exclusions related to preexisting conditions."
      ]
    },
    "citation": "43A.316",
    "subdivision": "subdivision 8"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references coordination of benefits with federally sponsored programs such as Medicare.",
      "modified": []
    },
    "citation": "62A.146",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This mentions the handling of dissolving self-insured plans by school employers.",
      "modified": []
    },
    "citation": "471.617",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Employer-sponsored continuation coverage is considered as per legislation.",
      "modified": [
        "Clarification on continuation rights notification for employees."
      ]
    },
    "citation": "471.61",
    "subdivision": "subdivision 2b"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This provides the definition of an exclusive representative as applicable in multiple contexts within the bill.",
      "modified": []
    },
    "citation": "179A.03",
    "subdivision": "subdivision 8"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This refers to definitions of public employees relevant to eligibility criteria.",
      "modified": []
    },
    "citation": "179A.03",
    "subdivision": "subdivision 14"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill discusses continuation of program benefits in the event of a strike.",
      "modified": []
    },
    "citation": "179A.18",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Non-payment towards the program is considered using funds contrary to their purpose under section 127A.42.",
      "modified": []
    },
    "citation": "127A.42",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This mentions eligibility under several chapters for public pension or annuity which includes chapter 352.",
      "modified": []
    },
    "citation": "352",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Refers to the requirement for plans to meet conditions of a governmental plan as per the US Code.",
      "modified": []
    },
    "citation": "1003.232",
    "subdivision": ""
  }
]