Agenda - Council - 02/08/2021 - Laserfiche WebLink

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0 g) benefits under Minn. Stat. § 299A.465. Employees who receive a police and fire disability retirement benefit and accept another job that offers them group health benefits should be required to pay for their group health benefits with the city should they decide to continue them. The Legislature must amend Minn. Stat. § 299A.465 to reflect that employees are required to inform the city when they become eligible for coverage under another group plan and that failure to do so is grounds for termination from the benefits granted under Minn. Stat. § 299A.465. The legislature should establish a task force to study the long-term costs of this program, including funding for an actuarial consultant, and make recommendations on changes to make it more financially feasible for Minnesota taxpayers. HR-12. Health Care Insurance Programs Issue: Cities, like other employers in the state, are struggling with the rising costs of health care insurance for their employees. In addition, cities must cope with unfunded mandates imposed on them by the Legislature such as the requirement to pool early retirees with active employees and the requirement to bargain over changes in the "aggregate value" of benefits, even when the city's contribution has not changed. Response: The League of Minnesota Cities supports legislative efforts to control health insurance costs while maintaining quality health care services. However, cities have differing local needs and circumstances and must retain the 113 flexibility to provide unique and creative solutions to the rising costs of health care insurance for their employees. The League: a) Opposes legislative action that undermines local flexibility to manage rising health care costs. b) Encourages the Legislature to carefully examine the costs and administrative impacts of any new, mandated insurance -related benefit before imposing it upon city employers. c) Supports changes to Minn. Stat. § 471.6161, subd. 5, that would clarify the intent of the subdivision is to address changes in cost vs. changes in value (e.g., changes in provider networks, changes in benefit levels required by an incumbent insurance carrier, changes required for compliance with state and federal laws, including those needed to avoid incurring the federal excise tax known as the "Cadillac Tax". d) Supports changes to Minn. Stat. § 471.61 so that the requirement for cities to offer retiree coverage begins on the date the retiree and/or dependents become eligible for federal Medicare coverage. e) Supports a clarification to Minn. Stat § 471.61 and to Minn. Stat. § 471.617 to explicitly alleviate a city's responsibility to comply with group health benefits mandated by state law when the city's employees are covered under a union plan authorized by federal statutes. f) Supports statutory authorization for cities to collect up to a two percent administrative fee from retirees receiving post -retirement health insurance benefits.