|Senate Counsel & Research||State of Minnesota|
|S.F. No. 2672 - Health Care Cost Payment by Large Employers (first engrossment)|
|Author:||Senator Becky Lourey|
|Prepared by:||John C. Fuller, Senate Counsel (651/296-3914)|
|Date:||April 25, 2006|
This bill amends the chapter of Minnesota Statutes related to labor standards and wages. It requires private employers with more than 10,000 employees in Minnesota to pay to the state for deposit in the health care access fund account the difference between eight percent of the wages paid to Minnesota employees and what the employer pays for medical costs of its employees. If the employer pays more than eight percent, there is no payment obligation.
Section 1 contains definitions.
Subdivision 2 defines "commissioner" as the Commissioner of Labor and Industry.
Subdivision 3 defines "employee" and excludes independent contractors from the definition..
Subdivision 4 defines an "employer" as an entity employing more than 10,000 individuals within the state.
Subdivision 5 defines "health care costs" as those paid for by an employer to provide health care or health insurance and that are deductible by the employer under federal tax law.
Subdivision 6 defines "wages" by reference to the definition of wages contained in the unemployment compensation law. Excluded from wages are those paid to employees enrolled in Medicare and those wages that are in excess of the state median household income.
Section 2 requires employers that pay less than eight percent of wages for health care costs to make a payment to the state for the difference between eight percent and what the employer pays for health care costs. The obligation is enforced on an annual calendar-year basis. The payment must be made to the Commissioner for deposit into the health care access fund. The first year an employer has the obligation is calendar year 2007.
Section 3 requires the Commissioner of Labor and Industry to enforce section 2. The Commissioner is authorized to engage in various activities to ensure compliance with section 2. The Commissioner of Employment and Economic Development is required to cooperate with the Commissioner in providing wage and employment count information.
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 and Research for the Minnesota Senate.
Last review or update: 04/25/2006
If you see any errors on this page, please e-mail us at firstname.lastname@example.org.