State employees could opt out of state’s insurance coverage

If state employees want to decline their state-funded health insurance coverage, Rep. Steve Drazkowski (R-Mazeppa) thinks they should have that opportunity.

Drazkowski sponsors HF1030, which would give eligible state employees who can prove they would be covered otherwise the chance to opt out of their health insurance. The idea, Drazkowski said, is to save money.

The House State Government Finance Committee laid the bill over Tuesday for possible omnibus bill inclusion. Its companion, SF2021, sponsored by Sen. Michael Goggin (R-Red Wing), awaits action by the Senate State Government Finance and Policy and Elections Committee.

Minnesota Management and Budget reports an estimated 4,000 of the state’s 54,000 employees would be eligible for the Drazkowski option. Of those, MMB reasons, 600 employees would opt out of state health insurance, saving the state an estimated $6.55 million over the next biennium and $9.77 million in Fiscal Years 2020-21.

Employees would opt out for a few reasons, according to MMB: married individuals who are only using single coverage might hop over to their spouse’s plan; young adults covered under their parents’ insurance; and anyone else with special coverage, like veterans.