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Minnesota - Compensation & Benefit Legislation

MINNESOTA - AASHOWME

Demonstrates www.BenefitsReview.com™ site. Illustrates insurance carriers' coverages within the State.

 

MINNESOTA - ADOPTED CHILD HEALTH CARE MANDATE

OBRA 1993 (Federal) requires group health plans to honor medical and child support orders. Also, plans must treat adopted children like biological children covered by the plan, and plans are precluded from applying pre-existing condition exclusions to an adopted child where no such exclusion applies to a newborn biological child. Health plans that covered the cost of pediatric vaccines as of May 1, 1993, and fail to continue that level of coverage, will be subject to an excise tax penalty applicable to plans that fail to meet the health care continuation coverage requirements under OBRA 1993.

 

Mandatory coverage of birth of adopted children and grandchildren is included in state's newborn health care mandate.

 

Preventive care for children: Yes, to age 6.

 

(Minnesota Stat. Ann. Sections 62A.042, 62A.047, 62A.14, 62A.27)

 

MINNESOTA - ALCOHOLISM & DRUG ABUSE

Mandatory coverage.

 

Minimum yearly inpatient coverage: 20% of total patient days allowed or 28 days.

 

Minimum yearly outpatient coverage: 130 hours.

 

Minimum lifetime coverage: no statutory requirements.

 

(Minnesota Stat. Ann. Section 62-A.149)

 

MINNESOTA - CAFETERIA PLAN TAX LAWS

State income tax, unemployment insurance tax on salary reduction: For state Unemployment Insurance purposes, the total amount of employees' salary reductions and any cash that the employee has the option to receive (whether or not the employee chooses the cash option) must be treated as wages.

 

MINNESOTA - CONTINUATION OF COVERAGE CONVERSIONS

Events Triggering Continuation of Coverage:

 

MINNESOTA - COORDINATION OF BENEFITS

Requires use of the birthday rule if coordinating benefits. Based on 1986 National Association of Insurance Commissioner Rules model. (Minnesota Ins. Reg. 2742.0100)

 

MINNESOTA - COST-OF-LIVING

ERI's Relocation Assessor™ is a recommended source for U.S./Canadian cost-of-living data and U.S. Automobile Cost Survey.

 

MINNESOTA - DRUG TESTING AND EMPLOYEE ASSISTANCE BENEFITS

Who is Covered by Statute: All independent contractors, persons working for independent contractors

 

Applicant Testing: Applicant testing is allowed, but only after conditional offer of employment has been made, and is pursuant to a written policy. In addition, this test must be requested or required of all applicants.

 

Employee Testing: Employee testing is allowed if reasonable suspicion of drug use exists. Post accident and EAP-related testing is allowed. Random testing of employees in safety-sensitive positions is permitted. Testing during routine physical examination is allowed if at least 2-week notice is given.

 

How Test Results are Used: Test results may be used to screen out drug-using applicants or to discharge or discipline employees. An employee's first offence results in referral to an EAP.

Enforcement of Statutes: Enforcement is by private civil action.

 

Employee Remedies: Employees may seek back pay, reinstatement, and damages.

 

Employer Penalties: None.

 

Who Pays for Testing: State has no statutory requirements.

 

Employee Assistance Benefits: State has no statutory requirements.

 

Other Requirements: Nothing in section shall be constructed to interfere with or diminish any employee protections relating to drug or alcohol testing already provided under collective bargaining agreement that exceeds the minimum standards for employee protection provided in sections.

 

(Minnesota Stat. Ann. Sections 181.950-181.957.)

 

MINNESOTA - GROUP HEALTH CODE ADDITIONS (MANDATED)

Adopted Children: Policies providing family coverage must cover adopted children as of the date of placement with the insured. (Minnesota Stat. Section 62A.27.)

 

Alcoholism and Drug Abuse Treatment: Group accident and sickness policies issued on an expense incurred basis must cover such treatment on the same basis as other illnesses including 20 percent of total patient days allowed under the policy to at least 28 days of inpatient or residential treatment per year and 130 hours of outpatient treatment per year. (Minnesota Stat. Section 62A.149.)

 

Breast Cancer Treatment: Health policies must cover expenses related to treatment of breast cancer by high dose chemotherapy with autologous bone marrow transplantation. These treatments must not be subject to greater coinsurance or co-payment. (H1742, S1590, 1995) (Minnesota Stat. Section 62A.307.)

 

Cancer Diagnostic Procedures: Policies must cover cancer screening procedures, including mammography and pap smear. (Minnesota Stat. Section 62A.30.)

 

Cleft Lip or Palate: Policies providing family coverage must include coverage of inpatient and outpatient treatment, including orthodontics and oral surgery. (Minnesota Stat. Section 62A.042.)

 

Children's Health Supervision Services: Policies must cover child health supervision services and prenatal services as defined and such services must be exempt from deductions and coinsurance. (Minnesota Stat. Section 62A.047.)

 

Complaint Procedures: All health plan companies must establish and make available to enrollees, by July 1, 1997, an informal complaint resolution process. (Minnesota Stat. Section 62Q.105.) (S845, 1995.)

 

Coverage Continuation: Accident and sickness policies must provide continuation rights to survivors following the death of the insured. (Minnesota Stat. Section 62A.146.) Group policies must continue coverage of employees absent due to total disability. (Minnesota Stat. Section 62A.148.) Group policies must provide continuation rights for up to 12 months and subsequent conversion rights to terminated or laid-off employees for themselves and their dependents. (Minnesota Stat. Section 62A.17.) Policies must provide continuation and subsequent conversion rights to spouses and dependents who cease to be eligible due to dissolution of marriage. (Minnesota Stat. Section 62A.21.)

 

Coverage Reinstatement: Group health insurance policies or contract must permit the reinstatement of coverage of members of a reserve component of the U.S. armed services or the national guard whose coverage or dependent coverage was terminated, canceled, or non-renewed while that person was on active duty. The reinstated coverage must not contain any new pre-existing conditions or other exclusion or limitation, other than a disability incurred or aggravated in the line of duty. The remainder of a pre-existing condition limitation that was not satisfied before the coverage was terminated may be applied upon reinstatement of coverage. (S1815, 1996) (Minnesota Stat. Section 72A.20.)

 

Coverage Termination: Group health policies must not retroactively cancel, rescind, or terminate coverage of an employee, dependent, or other covered individual without written consent from such person. These restrictions do not apply in cases where a policy is lawfully terminated retroactively and not replaced with similar coverage or where a covered individual is found to have committed fraud or misrepresentation with respect to eligibility for coverage. (H2044, 1996) (Minnesota Stat. Section 72A.20.)

 

Dental Care: Health plans which provide coverage to state residents must cover anesthesia and hospital charges for dental care provided to a covered person who, due to special conditions, requires hospitalization or general anesthesia for dental care treatment. Health carriers may require prior authorization for such hospitalization in the same manner as it is requires for other covered diseases or conditions. (H843, S613, 1995.)

 

Dependents: Accident and sickness policies providing dependents coverage must cover dependents whether or not they reside with the insured. (Minnesota Stat. Sections 62A.048, 301.)

 

DES: Policies may not restrict coverage of a condition solely because it is attributable to DES or exposure to DES unless the person is diagnosed as having DES related cancer prior to coverage. (Minnesota Stat. Section 62A.154.)

 

Domestic Abuse: Group health policies must be offered to victims of domestic abuse under the same terms and rates as normally charged for the same coverage. Insurers may underwrite the risk on the basis of the physical and mental history of an individual as long as the insurer does not take into consideration whether the individual's condition was caused by an act of domestic abuse. (S1815, 1996.) (Minnesota Stat. Section 72A.20.)

 

Emotionally Handicapped Children: Policies covering inpatient hospital and medical expenses must cover treatment of emotionally handicapped children in a residential facility. (Minnesota Stat. Section 62A.151.)

 

Genetic Testing: The Genetic Discrimination Act of 1995 prohibits health plan companies from requiring or using genetic testing of an individual or blood relative in determining eligibility for coverage, establishing premiums, limiting coverage, renewing coverage, or any other underwriting decision in connection with the offer, sale, or renewal of a health plan. (S259, 1995) (Minnesota Stat. Section 72A.139.)

 

Handicapped Dependents: Coverage for dependent children cannot be terminated while a child is incapable of employment due to mental retardation or physical handicap and chiefly dependent on the insured. (Minnesota Stat. Section 62A.14.) Group policies that provide dependent coverage must cover handicapped dependents. (Minnesota Stat. Section 62A.141.)

 

Integrated Service Networks: Regulation of managed care plans has been expanded to include integrated service networks and community integrated service networks. (S845, 1995) (Minnesota Stat. Sections 60G.01, 62N.04.)

 

Long Term Care: Disclosure of Terms: Under long term care provisions, individuals must be supplied at time of application with descriptions of benefits and coverages, exceptions and limitations, renewal provisions, policy loss ration, out of pocket expenses, waiting periods, and requirements for prior hospitalization. Plan Requirements: Health policies providing coverage for long term care must supply benefits for prescribed care in nursing facilities and for prescribed in home health care services. Mental or nervous disorders which have a demonstrable organic cause such as Alzheimer's and related dementias may not be excluded; benefits for pre-existing conditions must be provided during the first 6 months of coverage if an individual has not been diagnosed or treated for a condition during a 90 day period immediately preceding an effective date; premium payments must be waived during any period in which benefits are being paid for nursing home expenses; and policies may not be issued until an insurer has received from an individual seeking coverage a written designation of at least one additional person who must be notified of plan cancellation due to premium non-payment. Maximum Lifetime Benefits: Maximum lifetime coverages are limited to benefits of at least $100,000 or at least $50,000 for services or benefits; nursing facility and home care coverages must not be subject to separate lifetime maximums. (S1647, H697, 1995) (Minnesota Stat. Sections 62A.48,1; 62A.50,3.)

 

Maternity Benefits: Group accident and sickness policies must provide the same maternity benefits to unmarried women and minor female dependents as they do to married women. (Minnesota Stat. Section 62A.041.) Health care plans which cover maternity care must provide benefits for inpatient hospital care for a mother and her newborn child for a minimum of 48 hours following a vaginal delivery and for a minimum of 96 hours following a Caesarean section. Post-delivery coverage in the home must be provided to a mother and her newborn child in cases where hospital care duration is less than the stated minimums; this care must consist of a minimum of one home visit by a registered nurse within four days following discharge. Compensation or other non-medical remuneration to encourage a mother and her newborn child to seek early discharge from a hospital is prohibited. (H2008, S1791, 1996) (Minnesota Stat. Section 62A.0411.)

 

Mental Health: Group policies providing benefits for mental and nervous disorders must cover 80 percent of the cost of the usual and customary charges for the first 10 hours of treatment incurred in one year. (Minnesota Stat. Section 62 A.152.) Medically necessary care for mental health conditions is classified by consideration of the type, frequency, level, setting, and duration of an individual's diagnosis or treatment sessions. Also, medically necessary care includes diagnostic testing and preventive mental health services. Medically necessary care must aim at the restoration or maintenance of an individual's mental health or must target the prevention of mental health deterioration. (H645, 1997) (Minnesota Stat. Section 62Q.60.)

 

Newborns: Policies providing family coverage must provide benefits for newborns from the moment of birth for injury or sickness, including treatment of medically diagnosed congenital defects, birth abnormalities, and prematurity. (Minnesota Stat. Section 62A.042.)

 

Obstetrical and Gynecological Care: Effective 1/1/98, health care policies must allow women direct access to obstetricians and gynecologists -- without referrals or prior approvals from other physicians, health plans, or health plan representatives -- for annual preventive health examinations, maternity care, and evaluation and treatment of acute gynecologic conditions or associated emergencies. (H447, S398, 1997) (Minnesota Stat. Section 62Q.52.)

 

Phenylketonuria: Policies must cover special dietary treatment for phenylketonuria when recommended by a physician. (Minnesota Stat. Section 62A.26.)

 

Prescription Drugs: Policies that cover prescription drugs must provide the same coverage for a prescription written by a health care provider authorized to prescribe the particular drug without regard to the type of provider who wrote the prescription. Denial of coverage is prohibited based on a prescription having been written by an advanced practice nurse, physician's assistant, or other non-physician health care provider. (H612, 1995)

 

Providers: Osteopaths, optometrists, chiropractors, registered nurses, dentists, podiatrists, psychologists, state facilities, and ambulatory surgical centers: Costs for services must be covered if the provider is licensed, the service is within the provider's scope of services, and the service is covered by the policy. (Minnesota Stat. Sections 62A.03.1(10), .15, .043, .081, .152, .153.)

 

Reconstructive Surgery: Policies must cover reconstructive surgery incidental to surgery resulting from injury, sickness, or other disease. (Minnesota Stat. Section 62A.25.)

 

Scalp Hair Prostheses: Policies must cover such costs when incurred as a result of alopeciareata (Minnesota Stat. Section 62A.28.)

 

Ventilator-Dependent Persons: Policies covering services of a private duty nurse or personal care assistant to a ventilator-dependent person must cover the cost of 120 hours of such services rendered while the patient is hospitalized. (Minnesota Stat. Section 62A.155.)

 

MINNESOTA - GROUP HEALTH FOR SMALL EMPLOYERS

For insurance plans offered to small employers:

 

MINNESOTA - GROUP LIFE CODE ADDITIONS

Employer required to pay part of premium: No.

 

Percent of employees who must elect coverage (if employees pay part of premium): No statutory requirements.

 

Percent of employees who must be covered if employer pays all of premium: No statutory requirements.

 

Minimum number of employees in group plan: No statutory requirements.

 

Employer prohibited as beneficiary: No.

 

Grace period (days): Parties may agree to allow for a grace period.

 

Mandatory conversion: Yes.

 

Other provisions: None.

 

(Minnesota Stat. Ann. Sections 24.12701, 24.14404, 24.14438)

 

MINNESOTA - HOLIDAYS

January 1, Washington's Birthday (or 3rd Monday in February), Memorial Day (or last Monday in May), July 4, Labor Day (or 1st Monday in September), Veterans Day, and December 25 are state holidays in all 50 states and in the District of Columbia. Other holidays under State law include: Martin Luther King's birthday (or 3rd Monday in January), Columbus Day (or 2nd Monday in October), Thanksgiving. Other: Friday after Thanksgiving (executive branch only). If January 1, July 4, November 11, or December 25 fall on Sunday, following Monday is a holiday; if it falls on Saturday, preceding Friday is a holiday. (Minnesota Stat. Ann. Section 645.44)

 

MINNESOTA - IMMIGRATION (PREVAILING WAGE POLICY)

See U.S. Federal General Administrative Letter 1-2000

 

MINNESOTA - JURY DUTY & WITNESS TIME OFF

Employer Restriction For Discharging Employee For Taking Leave For Jury Service: Yes.

 

Remedies and Penalties: Violator is guilty of contempt of criminal contempt, punishable by a fine of not more than $700, or imprisonment for not more than 6 months, or both. Employee can bring civil action within 30 days of discharge for lost wages, reinstatement and reasonable attorney fees. Damages recovered shall not exceed 6 weeks' lost wages.

 

Other Requirements: None reported. (Minnesota Stat. Ann. Section 593.50.)

 

Employer Restriction For Discharging Employee For Taking Leave to be a Witness: State reports no statutory requirements.

 

Remedies and Penalties: State reports no statutory requirements.

 

Other Requirements: None reported.

 

MINNESOTA - LEAVES OF ABSENCE

Employers Subject to Leave Laws: For birth/adoption of child and illness: Employers with more than 21 employees. For school leave: employers with 1 employee.

 

Criteria for Eligibility: Must be employed half time for at least 1 consecutive year.

 

Maximum length of leave: For birth/adoption of child or illness: 6 weeks. (An employer with fewer than 21 employees and allows maternity leave must allow 4 weeks for adoption of a child.) School leave: 16 hours per year.

 

Paid Leave: State does not require paid leave.

 

Acceptable Reasons for Leave: Birth/adoption or serious illness of a child; child's school conferences and activities.

 

Employment Guarantees After Leave: Entitled to the reinstatement of the position held prior to leave or equivalent position.

 

Use of Vacation or other Time-off Benefits: Employer may require that employee use sick leave to care for a sick child.

 

Certification Required: State reports no statutory requirements.

 

Effect Of Leave on Other Benefits: All benefits are restored at the end of leave.

 

Effect of Seniority Accrual During Leave: Seniority benefits do not accrue during leave.

 

Minimum Requirements for Notification to Employer: Prior notice may be required; notice of return date is required if leave is over 4 weeks.

 

Conditions for Denial of a Request For Leave: State reports no statutory requirements.

 

(Minnesota Stat. Ann. Sections 181.940 - 181.944.)

 

See U.S. Federal Family and Medical Leave Act

 

MINNESOTA - LONG TERM DISABILITY CODE ADDITIONS

State does not require employer to provide long term disability benefits; although many employers do in order to remain competitive in hiring/retention of employees.

 

See LEAVES OF ABSENCE (above), WORKERS' COMPENSATION (below) and U.S. Federal Americans With Disabilities Act

 

MINNESOTA - MANDATED PROVIDERS

Optometrists, chiropractors, and psychologists. Mandatory coverage for nursing services. (Minnesota Stat. Ann. Sections 62A.15, 62A.152)

 

MINNESOTA - MENTAL HEALTH CARE

Mandatory coverage for outpatient treatment if inpatient treatment is covered.

 

Minimum yearly inpatient coverage: No statutory requirements.

 

Minimum yearly outpatient coverage: 80% of first 10 hours; 75% of additional hours for serious and persistent mental illness.

 

Minimum lifetime coverage: No statutory requirements.

 

(Minnesota Stat. Ann. Section 62A, 152)

 

MINNESOTA - MINIMUM WAGE

Refer to the Federal minimum wage: $5.15 per hour (effective September 1, 1997).

 

$4.90 per hour for firms with annual gross sales of less that $500,000.00.

 

Exemptions: Certain professionals, agriculture workers, domestics, outside sales. Apprentices and handicapped workers in special environments may be exempt by permit.

 

(Minnesota Stat. Ann. Sections 177.23, 177.24, 177.28)

 

See U.S. Minimum Wage

 

MINNESOTA - NEW HIRE REPORTING

Who is required to report: All employers.

 

Who must be reported: All employees and rehires who earn more than $250 a month and will be employed for at least 2 months duration.

 

Exempt from reporting: Employees earning less than $250 per month and employees working less than 2 months.

 

Form(s) to file: W-4 form, W-9 form, or similar form.

 

Filing deadline: Within 20 days of hire.

 

Employer information to be included: Name, address, and federal EIN.

 

Employee information to be included: Name, address, SSN, and date of birth.

 

Penalty for failure to report: Written notice of delinquency will be followed by fines of $25 per employee. $500 if failure is result of a conspiracy between the employer and employee.

 

(Minn. Stat. Ann. Section 256.988)

 

MINNESOTA - NEWBORN CARE MANDATE

Mandated coverage.

 

Preventive care for children: Yes, to age 6. (Minnesota Stat. Ann. Sections 62A.042, 62A.047, 62A.14, 62A.27)

 

MINNESOTA - PARENTAL LEAVE

See U.S. Federal Family and Medical Leave Act

 

MINNESOTA - PRE-EXISTING CONDITIONS

State reports no statutory requirements.

 

See U.S. Federal Health Insurance Portability & Accountability Act

 

MINNESOTA - PROTECTED CLASSIFICATIONS

Age:  Yes, older than 25.

Race:  Yes.

Color:  Yes.

National Origin: Yes.

Ancestry:  No specific law. State has expressed policy against discrimination.

Religion: Yes.

Sex: Yes.

Pregnancy: Yes.

Sexual Harassment:  No specific law. State has expressed policy against discrimination.

 

(Minn. Stat. Ann. Section 363.03.)

 

MINNESOTA - SALARY SURVEY

ERI's Relocation Assessor™ is a recommended source for U.S./Canadian wages & salaries (covering 3,000 positions).

 

MINNESOTA - SHORT TERM DISABILITY CODE ADDITIONS

State does not require employer or employee participation in short term disability plans.

 

MINNESOTA - TERMINATION & SEVERANCE PAY

Date pay is due if employee is discharged: Within 24 hours.

 

Date due if employee resigns: Within 5 days.

 

Wages: Yes.

 

Vacation Pay: No.

 

Holiday: No.

 

Sick leave: No.

 

Severance: No.

 

(Minnesota Stat. Ann. Sections 181-11, 181-13, 181-14, 181-74, 181.145)

 

MINNESOTA - UNEMPLOYMENT TAX

Employer Contributions:

 

 

Voluntary Contribution Provision: Yes. Allowable if payment is made in 30-day period following notice of contribution rate and within 120 days from the beginning of the year.

 

(Minnesota Stat. Ann. Sections 268.06, 268.10, 268.12.)

 

MINNESOTA - VACATION PAY

State reports no statutory requirements.

 

MINNESOTA - VOTING TIME OFF

Sufficient time for voting on the morning of election day. (Minnesota Stat. Ann. Sections 204C.04, 211B.13.)

 

MINNESOTA - WORKERS' COMPENSATION

Private Employers: Mandatory to most employments. Elective as to partners or officers of family farms or close corporations and their families.

 

Public Employers: Mandatory as to all public employments. Sub-divisions may cover elective and appointed officers.

 

Exceptions: Certain casual labor; household workers who earn under $1,000 per 3 months from 1 private household; family farms with annual farm labor payroll under $8,000; (Note: Less than $8,000 or less than the SAWW when farm operator has total liability and medical payment coverage equal to $300,000 and $5,000 under a farm liability policy and the policy cover as injuries to farm laborers.) railroad workers covered by federal law; non-profit corporations with annual payroll under $1,000; commercial thresher or baler for family farm. (Note: Act does not apply to persons covered by Domestic Volunteer Service Act of 1973, as amended.)

 

Special Coverage Provisions: Election must be in writing. Person, partnership, or corporation may elect coverage for independent contractors for a fee. Specifically covers voluntary first responders and members of law enforcement assistance organizations.

 

(U.S. Chamber of Commerce, 1994 Analysis of Workers' Compensation Laws.)