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S.F. No. 646 - Public Employee Insurance Program (PEIP)
 
Author: Senator David Hann
 
Prepared By:
 
Date: March 11, 2011



 

Overview

This bill requires PEIP (administered by the Department of Management and Budget for local government employees) to pay Minnesota Comprehensive Health Association (MCHA) assessments and the insurance premium tax.

Section 1 is a conforming change to provisions later in the bill and also requires a claims reserve of at least two months.

Section 2 eliminates PEIP's exemption from certain health insurance and competitive bidding requirements and requires PEIP to pay MCHA assessments.  Premiums received from groups covered by PEIP before May 1, 2011, continue to be exempt from the MCHA assessment as long as the groups maintain continuous coverage in PEIP.

Sections 3 and 4 define PEIP as a contributing member of MCHA. 

Section 5 imposes the insurance premium tax of two percent on PEIP.  Groups covered before May 1, 2011, continue to be exempt from the tax so long as they maintain continuous coverage in PEIP. 

Section 6 is a conforming change.

 

CBS:cs

 
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