School District Health Insurance Transparency Act

 

Section 1 subjects the public employee insurance program to group insurance bidding requirements for governmental units.

 

Section 2 requires the public employees insurance program (PEIP) to respond to requests for proposals for school district health insurance coverage within 60 days.

 

Section 3 provides that service co-op special advisory committees are committees of a public body for purposes of the Open Meeting Law when addressing issues related to health insurance.

 

Section 4 provides that service co-op advisory councils are committees of a public body for purposes of the Open Meeting Law when addressing issues related to health insurance.

 

Section 5 requires that an entity must negotiate with the exclusive representative with respect to insurance premiums returned to that entity by a service co-op. If there is no exclusive representative or agreement is not reached within 150 days, the remaining funds must be used to pay the full premium for any employee not covered by an agreement negotiated under this section.

 

Section 6 prohibits a school board member or school district employee from receiving compensation or benefits based on incentives from a source of group insurance coverage, except for a premium rebate referenced in Section 4 of this bill.

 

Section 7 makes charter schools subject to sections 471.6161 (group insurance for governmental units) and 471.895 (gift ban).

 

Section 8 adds insurance coverage provided by PEIP or a service co-op to the definition of group insurance coverage under this statutory section.

 

Sections 9 and 10 are conforming changes.

 

Section 11 requires an entity providing group insurance coverage to provide the school district with nonidentifiable aggregate claims records for the most recent 24 months within 30 days of request. Requires school districts to request proposals for group insurance coverage from at least three sources, one of which is a group administrator governed by chapter 43A, (e.g. PEIP). Requests for proposals must be made 150 days prior to expiration of the existing contract but not more frequently than every 24 months.  Timing for submission of renewal premium rates and proposed plan design changes is specified.  School district contracts for group insurance cannot exceed two years unless the exclusive representative and school district agree otherwise.

 

Section 12 applies the gift ban to school board members, superintendents, principals, and district school officers.

 

Section 13 requires the commissioner of management and budget to report on the costs for PEIP to comply with the bill.

 

Section 14 provides appropriations for purposes of the bill.

 

Section 15 provides an effective date of July 1, 2014.

 

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