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SF 4932

Health insurance benefit plans offered in the nonrepresented employees compensation plan and the managerial plan in chapter 43A provision modification

2025-2026 Regular Session

Allows state agencies to round cash transactions to nearest five cents and requires posted rounding policies.

Pursuant to Senate Concurrent Resolution No. 6, referred to Rules and Administration
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Bill Summary · SF 4932

Summary of SF 4932 (2025-2026) — Minnesota

Bill at a Glance

  • Jurisdiction: Minnesota
  • Session: 2025-2026
  • Title: Health insurance benefit plans offered in the nonrepresented employees compensation plan and the managerial plan in chapter 43A provision modification
  • Senate: SF No. 4932 (Author: Xiong)
  • Introduced / Status: Introduced 03/25/2026; first reading 03/26/2026; committee report: To pass as amended (04/16/2026)

Purpose and Intent

SF 4932 proposes two main changes:
1) Allow rounding of cash transactions for state agencies under a new statutory provision (16A.402) governing cash payments and transfers.
2) Modify health insurance benefit provisions for certain state employee plans (nonrepresented employees compensation plan and managerial plan under chapter 43A) to:
- Update contracting and self-insurance framework
- Ensure compliance with coverage mandates and dependent coverage rules
- Authorize a high-deductible health plan option within existing health plans

The provisions on cash rounding are separate from the health insurance provisions but are included in the same bill.

Key Provisions

A. Cash Transaction Rounding (New Section 16A.402)

  • Authorization to Round: Agencies may round cash payments or transfers when:
    • If the final cent digit ends in 1, 2, 6, or 7, round down to the nearest amount divisible by 5.
    • If the final cent digit ends in 3, 4, 8, or 9, round up to the nearest amount divisible by 5.
    • Special case: amounts ending in $0.01 or $0.02 are rounded up to $0.05.
  • Administration: The rounding must be conducted by an agency employee authorized to engage in the transaction, following the rounding method.
  • Exclusions: The rounding does not apply to transactions paid by electronic funds transfer, checks, gift cards, money orders, credit cards, or similar methods.
  • Policy Requirement: Each agency engaging in cash transactions must establish and post a policy detailing rounding practices at locations where cash transactions occur.

B. Health Insurance Benefit Plan Provisions (Ch. 43A, § 43A.23 Subd. 1)

  • General Authority for Contracts: The commissioner may solicit proposals, negotiate, and contract with parties deemed best qualified to provide services for the state’s benefit plans. Contracts are not subject to certain procurement chapters (16C.16 to 16C.19). The commissioner may negotiate:
    • Premium rates
    • Coverage
    • Considerations include plan cost, conversion options, service capabilities, carrier reputation, and other relevant factors.
  • Contract Terms: Each benefit contract must have a uniform term of at least one year and may automatically renew absent notice of termination by either party. A carrier licensed under chapter 62A is exempt from certain taxes imposed by chapter 297I on premiums paid by the state.
  • Self-Insured Products Compliance (Hospital & Medical):
    • All self-insured hospital/medical products must comply with coverage mandates, data reporting, and consumer protection requirements applicable to insured products (including chapters 62J, 62M, 62Q).
    • Self-insured products that limit coverage to a network or differentiate coverage between network vs. non-network providers must comply with section 62D.123 and geographic access standards for HMOs as adopted by the commissioner of health.
  • Dependent Coverage (Self-Insured):
    • Notwithstanding the above, self-insured hospital and medical products under sections 43A.22 to 43A.30 must extend dependent coverage to eligible employees’ children to the full extent required by chapters 62A and 62L.
    • Minimum dependent coverage: to the limiting age defined in section 62Q.01, subdivision 2a; disabled children coverage as required by 62A.14 and 62A.141; dependent grandchildren coverage as required by 62A.042 and 62A.302.

C. Health Plan Options (Ch. 43A, § 43A.18)

  • Beginning January 1, 2010, the health insurance benefit plans offered in the nonrepresented employees compensation plan (subdivision 2) and the managerial plan (subdivision 3) must have an option compatible with the definition of a high-deductible health plan (HDHP) under the Internal Revenue Code (IRC), Section 223.

Note: The HDHP option language appears to set forth permission or requirement for offering HDHP-compatible plans within these two employee benefit programs.

Affected Parties and Impacts

  • State Agencies: Authorized to implement cash rounding and must publish rounding policies at cash-transaction locations.
  • Employees Covered by 43A Plans:
    • Nonrepresented employees compensation plan
    • Managerial plan
    • Potentially broader state health benefit plan participants through the updated contracting and self-insured requirements
  • Carriers and Self-Insured Vendors: Subject to revised procurement/contracting framework, compliance requirements for self-insured products, and potential introduction of HDHP option within qualifying plans.
  • Dependents: The bill strengthens dependent coverage requirements for self-insured plans, extending child dependent coverage to the extent required by state law, including disabled dependents and grandchildren to specified extents.

Procedural and Timeline Aspects

  • Effective/Implementation Dates:
    • The bill text references an option for HDHP-compatible plans in the health benefits effective starting January 1, 2010 (appears to align with an existing provision; potential cross-reference). The precise current effective date would be clarified in the final enacted version.
  • Contracting and Compliance Timing: As with typical health-benefits procurement, implementation would align with contract terms of at least one year and automatic renewals unless terminated.
  • Status: As of the latest committee action (April 16, 2026), the bill passed the committee “to pass as amended” and was referred to Rules and Administration.

Summary of Significance

  • The bill introduces a standardized cash rounding method for certain cash transactions to reduce minor rounding errors and improve administrative efficiency, with transparency requirements (posted policy).
  • It modernizes and clarifies contracting, self-insured product requirements, and dependent coverage rules for state employee health plans under chapter 43A, including explicit alignment with HDHP options under the relevant employee plans.
  • These changes collectively aim to streamline state financial transactions and enhance the structure and protections of health insurance offerings for nonrepresented and managerial state employees, including dependents.

Compiled from official sources — confirm details with the bill’s official record.

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