HF4988

Purpose

This bill would create a promise of continued employer-paid health insurance for peace officers and firefighters who are disabled in the line of duty. It applies to those who qualify for line-of-duty disability benefits and who have left active public service. The goal is to ensure ongoing health coverage for the officer or firefighter (and, if applicable, their dependents) even after they stop working due to the disability, with the employer continuing to pay its share of the health insurance premium.

Who is covered and how eligibility works

• Covered individuals include peace officers or firefighters who:
  • are eligible for a duty disability benefit under the Public Employees Retirement Association (PERA) or the Minnesota State Retirement System (MSRS), or
  • do not meet the duty disability eligibility under certain PERA/MSRS rules but are in local police or salaried firefighters relief associations with a duty-disability determination, and
  • have discontinued public service due to a disabling injury, and
  • have had a duty disability determination made as defined in the bill.
• To receive continued coverage, the person must submit a request to the executive director of PERA or MSRS, whichever applies.
• The determinations by PERA/MSRS are binding on the employer and state, and notice must be given to both the employee and the employer. The notice explains the reasons for the determination and, if applicable, whether the employee may petition for a review (contested case) before the Office of Administrative Hearings (OAH). The cost of any contested case is borne by both the employee and the employer.
• There are procedures to reverse a determination if new information emerges before a contested-case hearing. If a hearing is held, the judge’s decision is final, with potential further judicial review limited to a writ of certiorari (court review).

Employer responsibilities and duration of coverage

• The employer must continue to provide health coverage and pay the employer contribution for the officer or firefighter and, if applicable, their dependents, if they were receiving coverage at the time of the injury.
• Coverage duration varies by disability category and timing:
  • If the person applied for or received benefits under the duty disability law before May 24, 2025, the employer must continue coverage until the person reaches age 65 (or would have reached 65 if not disabled), and until the dependents’ coverage ends if they were dependents at the time of injury.
  • If the person applies for or receives benefits under 353.656 after May 24, 2025, and the disability is not solely based on a psychological condition, the employer still must continue coverage under specified conditions.
  • If the person is approved for benefits under 353.656 on or after May 24, 2025 and is not approved for total and permanent disability, the employer must continue coverage for a defined period (often up to 60 months or until age 65, whichever comes first) for the officer and their dependents.
  • If the person is approved to receive benefits under 353.656 for total and permanent disability, specific continuation rules apply as described in the bill.
  • If the person is approved to receive benefits under 352B.10(1), the employer is responsible for continued health coverage for the officer/firefighter and their dependents until age 65.
• The employer is not required to continue coverage for dependents once they are no longer dependents.
• An officer or firefighter may voluntarily waive this continued coverage, but cannot receive compensation for waiving coverage, and any waiver agreement with the employer or its agent is void if compensation is provided for the waiver. Pre-enactment waiver agreements remain valid.
• Once a duty disability determination is made, the employer cannot challenge the continuation and payment of health coverage under this section.

Procedures for review and appeal

• The determination process involves written notices, a potential contested-case review before the Office of Administrative Hearings, and possible court review. The timelines and standards are set out to ensure timely consideration, with specific provisions about what happens if new evidence arises before a hearing.

Key changes to existing law

• Adds a new entitlement for continued employer-paid health insurance for peace officers and firefighters disabled in the line of duty, beyond active service, under specified disability determinations.
• Connects this continued coverage to disability determinations made by PERA or MSRS and to related disability programs (353.656 and 352B.10).
• Establishes notification, review, and appeal processes for determinations, including potential review in state courts.
• Sets time-bound continuation rules (e.g., up to age 65, or up to 60 months in certain scenarios) and clarifies when dependents’ coverage ends.
• Limits the ability of the employer to challenge the continued coverage after a duty-disability determination is made.

Significance and potential impact

• Expands health-insurance security for peace officers and firefighters who are injured in the line of duty, providing a defined period or until retirement age for continued employer-paid coverage.
• Shifts some control over eligibility determinations to PERA/MSRS with binding effect on employers, while preserving an appeal framework for affected individuals.
• Aims to reduce gaps in health coverage for injured public-safety personnel and their families during disability periods.

Relevant Terms - duty disability benefit - continued health insurance coverage - employer contribution - Public Employees Retirement Association (PERA) - Minnesota State Retirement System (MSRS) - local police relief association - 353.656 (duty disability statute) - 352B.10 (duty disability statute) - 353.01 subdivision 41 (definition reference) - 353.656 subdivision 3.1a - 353.656 subdivision 5a paragraph b - psychological condition (as a basis for disability) - 353.032 subdivision 3.231 (definition related to psychological conditions) - 352B.011 subdivision 7 - 299A.465 subdivision 1 - Office of Administrative Hearings (OAH) - contested case - writ of certiorari - Minnesota Court of Appeals - age 65 - dependents - total and permanent duty disability - 356.96 subdivision 2 (administrative review reference) - 353.656 (total and permanent disability provisions) - 352B.10 (disability provisions)