Insurance changes vetoed

Teachers and other local government employees won’t have to get permission from their employers to join a statewide health insurance program.

Gov. Mark Dayton vetoed a bill April 23 that would have required local governments’ approval before their employees could join the Public Employees Insurance Program. PEIP is an optional medical, dental and life insurance plan administered by the state and available to local government employees statewide.

Under current law, public employee unions can decide whether to join PEIP. Critics, including school boards, counties and municipal governments, say employers should have a say in what insurance plan their employees choose since it impacts them financially.

In his veto letter, Dayton wrote that the ability for small numbers of employees to join a much larger insurance pool has generated “millions of dollars in savings” for both the employees and their employers. He said the ability to join PEIP freely also generates more competitive bids by health insurance providers.

“Creating a new step in the approval process for police officers, teachers, maintenance workers, and local employees, as they attempt to access affordable health care is ill-advised,” Dayton wrote.

Rep. Joe Hoppe (R-Chaska) and Sen. Gary Dahms (R-Redwood Falls) are the sponsors.

HF371/ SF247*/CH213