SF4932 (Legislative Session 94 (2025-2026))
Health insurance benefit plans offered in the nonrepresented employees compensation plan and the managerial plan in chapter 43A provision modification
AI Generated Summary
Purpose
- Set rules for rounding cash payments in state agency transactions.
- Update how health insurance benefits are managed for certain state employee plans, including contracting, coverage rules, and optional high-deductible health plan choices.
Key Provisions
Cash transaction rounding (16A.402C)
- Agencies may round cash payments when the total ends with 1, 2, 6, or 7 cents by rounding down to the nearest 5-cent increment.
- If the total ends with 3, 4, 8, or 9 cents, round up to the nearest 5-cent increment.
- If the total ends with 0.01 or 0.02, round up to 0.05.
- Rounding applies to cash transactions, but not to transactions paid by electronic funds transfer, checks, gift cards, money orders, credit cards, or other similar instruments.
- Agencies must establish and post a policy for rounding at every location where cash transactions occur.
- An authorized person handling a transaction for an agency may round the payment in accordance with the agency’s rounding policy.
Health insurance benefit plans and contracting (43A.23 subdivision 1, amended)
- The commissioner can request proposals, negotiate, and contract with qualified parties to provide services for state benefit plans.
- Contracts for these plans are not subject to certain procurement laws (specifically 16C.16 to 16C.19).
- The commissioner may set premium rates and coverage, considering factors like plan cost, conversion options, service capabilities, financial position, and reputation of carriers.
- Each contract must run for at least one year and may be automatically renewed unless either party gives notice to terminate.
- Carriers licensed under chapter 62A are exempt from certain taxes on premiums paid by the state.
- Self-insured hospital and medical products must comply with coverage mandates, data reporting, and consumer protections applicable to licensed carriers (including related chapters).
- Self-insured products that limit coverage to a provider network or offer different coverage levels between networks and non-network providers must comply with relevant network and geographic access standards.
- Self-insured plans offered under these sections must extend dependent coverage to eligible employees’ children to the full extent required by related chapters (including age limits, disabled children, and dependent grandchildren as applicable).
High-deductible health plan option (HDHP) for certain plans
- Beginning January 1, 2010, health plans offered in the nonrepresented employees compensation plan (under section 43A.18 subdivision 2) and the managerial plan (under section 43A.18 subdivision 3) may include an option that is compatible with the definition of a high-deductible health plan (HDHP) under the Internal Revenue Code.
What the bill seeks to accomplish
- Create predictable, small-change rounding rules for cash transactions to simplify payments and reduce pennies.
- Modernize and streamline the administration of state health insurance benefits for certain employee groups by allowing the commissioner to select qualified providers, negotiate terms, and set rates, while ensuring compliance with consumer protections and network standards.
- Expand coverage requirements for self-insured health plans, including dependent coverage and alignment with existing state and federal rules.
- Introduce or expand the option for HDHPs within certain state employee plans.
Significant changes to existing law
- Establishes formal rounding rules for cash transactions with specific rounding directions based on the final cents of a transaction.
- Requires agencies to publish a rounding policy at cash transaction locations.
- Reforms how the state contracts for health insurance benefits, including scope of contract waivers from some procurement rules, premium and coverage negotiation, and renewal terms.
- Expands or clarifies dependent coverage requirements for self-insured health plans, aligning with state and federal standards.
- Enables a high-deductible health plan option for specified state employee health plans, linking to the IRC definition of HDHP.
Implementation considerations
- Agencies must implement and publicly post rounding policies; staff handling transactions must follow them.
- The state will oversee contract selection, premium setting, and monitoring of health benefit plans, including compliance with multiple chapters covering coverage mandates, data reporting, and consumer protections.
- Health plans will need to coordinate with standards for provider networks and geographic access, particularly for self-insured products.
Effective dates
- The HDHP option for specified state plans is referenced as beginning January 1, 2010.
- Other sections discuss ongoing authority and requirements but do not specify a single, separate effective date beyond general legislative adoption.
Relevant Terms - cash transaction rounding - final digit rounding (1, 2, 6, 7 cents down; 3, 4, 8, 9 cents up) - nearest amount divisible by 5; 0.01/0.02 to 0.05 - electronic funds transfer; checks; gift cards; money orders; credit cards - policy posted; cash transaction locations - 16A.402C (section for cash rounding) - Minnesota Statutes 43A.23 subdivision 1 (health plan contracting) - commissioner; benefit plans; premium rates; coverage - self-insured hospital and medical products - coverage mandates; data reporting; consumer protection - network vs. non-network coverage; geographic access standards; HMOs - dependent coverage; eligible employee’s child; disabled children; dependent grandchildren - chapters 62A, 62L, 62J, 62M, 62Q - high-deductible health plan (HDHP) - Internal Revenue Code section 223 (HDHP definition)
Bill text versions
- Introduction PDF PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 26, 2026 | Senate | Action | Introduction and first reading | ||
| March 26, 2026 | Senate | Action | Referred to | State and Local Government |
Citations
[
{
"analysis": {
"added": [
"Authorizes the commissioner to request proposals or negotiate and enter into contracts with benefit plan providers.",
"Contracts entered into are not subject to the requirements of sections 16C.16 to 16C.19.",
"Requires self-insured hospital and medical service products to comply with coverage mandates, data reporting, and consumer protection requirements applicable to the licensed carrier administering the product, including chapters 62J, 62M, and 62Q.",
"Dependent coverage provisions for self-insured plans extend to the full extent required by sections 62A.14, 62A.141, 62A.042, and 62A.302, including disabled children and dependent grandchildren as defined in those sections.",
"Beginning January 1, 2010, health insurance benefit plans offered in the nonrepresented employees compensation plan and the managerial plan may include an option for a high-deductible health plan (HDHP) compatible with the definition in IRC Section 223."
],
"removed": [
"No explicit removals stated."
],
"summary": "This bill amends Minnesota Statutes 2025 Supplement section 43A.23, subdivision 1, to authorize the commissioner to request proposals, negotiate, and enter into contracts for state employee health benefit plans, and to set out contracting principles and protections.",
"modified": [
"Adds authority for contracting and sets relationship to other statutes (e.g., exemptions from 16C.16-16C.19, HDHP option linked to IRC §223)."
]
},
"citation": "43A.23",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [
"Requires inclusion of a high-deductible health plan option compatible with IRC §223 for the nonrepresented employees health plan referenced in 43A.18, subdivision 2."
],
"removed": [],
"summary": "Amends 43A.18, subdivision 2 to require health plans for the nonrepresented employees compensation plan to include an HDHP option compatible with IRC §223.",
"modified": [
"Aligns nonrepresented employees health plan with HDHP definition in the Internal Revenue Code."
]
},
"citation": "43A.18",
"subdivision": "subdivision 2"
},
{
"analysis": {
"added": [
"Requires inclusion of a high-deductible health plan option compatible with IRC §223 for the managerial health plan referenced in 43A.18, subdivision 3."
],
"removed": [],
"summary": "Amends 43A.18, subdivision 3 to require the managerial health plan to include an HDHP option compatible with IRC §223.",
"modified": [
"Ensures parity between the nonrepresented and managerial plans regarding HDHP compatibility."
]
},
"citation": "43A.18",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [
"Self-insured hospital and medical products must comply with coverage mandates, data reporting, and consumer protection requirements applicable to insured products, including chapters 62J, 62M, and 62Q.",
"Self-insured products that limit coverage to a network or differentiate between network and non-network providers must comply with section 62D.123 and the geographic access standards for HMOs under chapter 62D."
],
"removed": [],
"summary": "Cross-references on self-insured health plans under 43A.22 to 43A.30, ensuring compliance with coverage mandates, data reporting, and consumer protections applicable to insured plans; includes provisions for network versus non-network coverage and geographic access standards.",
"modified": [
"Expands applicability of insured-plan protections to self-insured health products and integrates HDHP considerations."
]
},
"citation": "43A.22 to 43A.30",
"subdivision": ""
},
{
"analysis": {
"added": [
"Chapter 62D rules and the commissioner’s authority under 62D are invoked for geographic access standards."
],
"removed": [],
"summary": "References to chapter 62D in the health plan context, specifically regarding geographic access standards for HMOs.",
"modified": [
"Incorporates 62D as the governing framework for HMO geographic access standards in the self-insured context."
]
},
"citation": "62D",
"subdivision": ""
},
{
"analysis": {
"added": [
"Geographic access standards for HMOs must be complied with for self-insured products in line with 62D."
],
"removed": [],
"summary": "Requires compliance with geographic access standards for health maintenance organizations as adopted under chapter 62D.",
"modified": [
"Explicitly ties 62D.123 to self-insured products via cross-reference."
]
},
"citation": "62D.123",
"subdivision": ""
},
{
"analysis": {
"added": [
"Cross-reference to 62J for coverage mandate requirements applicable to self-insured hospital and medical service products."
],
"removed": [],
"summary": "References to chapter 62J in the context of coverage mandates for self-insured products.",
"modified": [
"Extends 62J coverage-mandate considerations to self-insured plans referenced in the bill."
]
},
"citation": "62J",
"subdivision": ""
},
{
"analysis": {
"added": [
"Cross-reference to 62M for data reporting and consumer protection requirements applicable to self-insured products."
],
"removed": [],
"summary": "References to chapter 62M regarding data reporting and consumer protections for self-insured plans.",
"modified": [
"Brings self-insured hospital and medical service products within the scope of 62M requirements."
]
},
"citation": "62M",
"subdivision": ""
},
{
"analysis": {
"added": [
"Cross-reference to 62Q for dependent coverage requirements applicable to self-insured products."
],
"removed": [],
"summary": "References to chapter 62Q regarding dependent coverage and related protections for self-insured plans.",
"modified": [
"Ensures dependent coverage standards in self-insured plans align with 62Q."
]
},
"citation": "62Q",
"subdivision": ""
},
{
"analysis": {
"added": [
"Dependent child coverage minimums align with 62A.14."
],
"removed": [],
"summary": "Dependant child coverage requirements referenced from 62A.14 for self-insured products.",
"modified": []
},
"citation": "62A.14",
"subdivision": ""
},
{
"analysis": {
"added": [
"Dependent grandchildren coverage alignment under self-insured plans per 62A.141."
],
"removed": [],
"summary": "Dependent coverage standards referenced from 62A.141 for self-insured products.",
"modified": []
},
"citation": "62A.141",
"subdivision": ""
},
{
"analysis": {
"added": [
"Dependent coverage alignment with 62A.042 for self-insured products."
],
"removed": [],
"summary": "Additional dependent coverage references to 62A.042 for self-insured plans.",
"modified": []
},
"citation": "62A.042",
"subdivision": ""
},
{
"analysis": {
"added": [
"Dependent grandchildren coverage minimums aligned with 62A.302 for self-insured products."
],
"removed": [],
"summary": "Dependent grandchildren coverage referenced in 62A.302 for self-insured plans.",
"modified": []
},
"citation": "62A.302",
"subdivision": ""
},
{
"analysis": {
"added": [
"Note: 62Q.01 subd. 2a governs dependent coverage specifics cited in the bill."
],
"removed": [],
"summary": "Explicitly references 62Q.01 subdivision 2a in the context of dependent coverage and HDHP compatibility.",
"modified": []
},
"citation": "62Q.01",
"subdivision": "subdivision 2a"
},
{
"analysis": {
"added": [
"HDHP compatibility with IRC §223 is required for health plans described in the bill."
],
"removed": [],
"summary": "Federal reference to the Internal Revenue Code §223 defining high-deductible health plan (HDHP) compatibility.",
"modified": [
"Anchors the HDHP option requirement to the federal HDHP definition in IRC §223."
]
},
"citation": "26 U.S.C. §223",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Clarifies that the contracts described in 43A.23 are not subject to certain procurement requirements.",
"modified": [
"Exempts 43A.23 contracts from the procurement requirements of 16C.16 to 16C.19."
]
},
"citation": "16C.16 to 16C.19",
"subdivision": ""
},
{
"analysis": {
"added": [
"Notes tax exemption for state premiums paid to 62A carriers under 297I."
],
"removed": [],
"summary": "Tax treatment reference: carriers licensed under chapter 62A are exempt from taxes under chapter 297I on premiums paid by the state.",
"modified": []
},
"citation": "297I",
"subdivision": ""
}
]Progress through the legislative process
In Committee