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Public Employee Insurance Program


The Public Employees Insurance Program (PEIP) was created by special legislation (Minnesota Statute 43A.316) to make a comprehensive package of medical, dental and life insurance benefits available to employees of Minnesota’s cities, townships, counties, school districts and other units of local government. PEIP was designed exclusively to give public employees the comprehensive coverage they deserve; while giving public employers access to a high-quality benefits package that will attract and retain outstanding employees.

With the limitations of public budgets in mind, PEIP offers built-in features that make its insurance coverage affordable. First, PEIP combines public employee groups all over Minnesota to maximize insurance buying power and secure competitive rates that individual groups might be unable to negotiate on their own. Finally, PEIP’s innovative Advantage plan designs keep medical costs under control -- and assures that health care dollars are used wisely.

In many units of local government, administrative personnel are spread thinly to cover a wide range of complex tasks and responsibilities -- of which managing the employee benefits program can be one of the most daunting. That’s why PEIP incorporates a number of administrative service features designed to cure benefits management headaches suffered by public employers. For example, PEIP provides built-in administration of the employer’s requirements under the Consolidated Omnibus Budget Reconciliation Act (COBRA) and the Health Insurance Portability and Accountability Act (HIPAA). PEIP also simplifies paperwork necessary for enrollment and other functions; and provides employers with a single, easy-to-read consolidated bill each month. In addition, PEIP’s toll-free customer service line provides employers with prompt assistance when questions about benefits, costs, coverage and billing arise. These features allow government administrators to concentrate on government business -- and leave many details of employee benefits management to PEIP!

Nobody likes tying up staff time and other resources with the work and cost of drafting a Request for Proposal (RFP) to seek bids on employee insurance coverage -- and public employers who purchase PEIP for their groups don’t have to! That’s because participation in PEIP exempts local government units from state laws (chapters 60A, 62A, 62C, 62D, 62E, and 62H; section 471.617 subdivisions 2 and 3; and Section 471.6161) that require public employers to put their group insurance business out for bid. Another benefits program management hassle solved by PEIP!

In today’s competitive labor market, offering a benefits program that gives each employee the opportunity to make important health care choices can be crucial to attracting and retaining the best employees available. In many areas of the state, PEIP coverage lets public employers offer each eligible employee the opportunity to choose the coverage that’s best for him/her from among some of Minnesota’s best-known health plans. Depending on your location, PEIP health plan choices may include HealthPartners, Blue Cross/Blue Shield, and PreferredOne. This means that most employees will probably be able to retain their doctors, clinics, hospitals and other health care providers when their organization purchases PEIP coverage -- which promotes better health and increased satisfaction among members of the employee group!

PEIP offers top-quality benefits -- ranging from complete managed health care services and preventive or comprehensive dental coverage, to employee life insurance and a variety of optional plans -- through Minnesota’s most reliable insurance carriers (Blue Cross/Blue Shield, HealthPartners, PreferredOne, Delta, and Minnesota Life. With PEIP, local units of government can opt for the convenience of one-stop-shopping for complete employee benefits -- featuring a single bill for all coverage -- while the members of their workforce enjoy the advantage of solid insurance protection!

The PEIP Advantage Program provides three different benefit plan options to give groups a wide range of coverage and price options. PEIP allows groups to offer one, two, or all three of these options.

Summaries of PEIP options



Employees who enroll in any of the PEIP managed care plans within 30 days of initial eligibility will not be subject to pre-existing condition limitations. If an employee has been diagnosed before enrollment in PEIP, he/she will still be eligible for the program’s managed care medical benefits!

Minnesota Life, a nationally respected carrier, provides PEIP life insurance coverage. The group’s size will determine its guaranteed issue amount. In addition to basic life insurance protection, PEIP’s AD&D coverage provides protection in case of accidental death, dismemberment or loss of sight.

Basic employee life/AD&D coverage

Minimum Benefit: $10,000 per employee
Fixed schedule (flat amounts) or salary multiple available

Optional/additional life coverage

Supplemental Employee Life/AD&D Coverage

Coverage may be purchased in $5,000 increments, subject to certain restrictions
Maximum Benefit: $300,000 (combined with basic coverage) available with evidence of insurability

Dependent Life

Coverage: $5,000 Spouse; $2,500 Dependent Child (ages 6 months through 18 years or through age 24 if full-time student)

Participation requirements

Eligible employees* who waive PEIP health coverage can still have life insurance if the employer provides life insurance to ALL employees who have waived PEIP health insurance.

*Retirees are not eligible for life insurance.

When PEIP dental insurance is elected by the employer, coverage is provided through Delta Dental, Minnesota’s largest dental insurer.

Depending on the employer’s location, employees are eligible for either the standard Delta Dental Plan or the DeltaPreferred Option Plan. Both the standard Delta Plan and the DeltaPreferred Option Plan offer basic preventive coverage; and both offer optional comprehensive coverage. Optional dependent coverage may also be available.

Standard Delta Dental Plan

Employees who enroll in the standard Delta Dental Plan may go to any licensed dentist for dental care.*

Preventive Coverage

Coinsurance*: 90% coverage

Routine Oral Exams: One per six-month interval

Teeth Cleaning: One per six-month interval

Topical Fluoride Treatment: One per 12-month interval (for dependents under age 19)

Full Mouth X-rays: One per 36-month interval

Bite-wing X-rays: One per 12-month interval

Dental X-rays: As required for diagnosis of specific conditions requiring treatment (excluding X-rays for orthodontic treatment)

All Other Services Not Listed: Not covered

Calendar Year Maximum: $200 per covered person

Optional Comprehensive Coverage

Deductible*: Single $50, Family $100

Basic Coverage: 80% coverage for fillings, extractions, routine oral surgery, endodontics, and periodontics.

Major Coverage: 50% coverage for inlays, onlays, crowns, dentures, fixed bridgework, and denture adjustments.

Calendar Year Maximum: $1,000 per covered person

Participation Requirements

The employer must contribute at least 50% toward the cost of dental coverage.

If the employer offers dental coverage, at least 50% of eligible employees must enroll. If dependent coverage is offered, family dental will be packaged with family medical. That means employees who choose family medical must also choose family dental.

*You may receive greater benefits if you receive services from a DeltaPreferred Option network dentist. Also, if you use a dentist who is not a participating Delta Dental provider, you may pay more out-of-pocket for your care.

DeltaPreferred Option Plan

Employees who are enrolled in the DeltaPreferred Option Plan use the extensive network of DeltaPreferred Option network dentists for maximum payment coverage. Employees may use a dentist outside the DeltaPreferred Option network, but must pay more out-of-pocket costs when care is provided by a non-network dentist.

Preventive Coverage

Coinsurance: 100% coverage (80% for non Preferred Option-network coverage)

Routine Oral Exams: One per six-month interval

Teeth Cleaning: One per six-month interval

Topical Fluoride Treatment: One per 12-month interval (for dependents under age 19)

Full Mouth X-rays: One per 36-month consecutive interval

Bite-wing X-rays: One per 12-month interval

Dental X-rays: As required for diagnosis of specific conditions requiring treatment (excluding X-rays for orthodontic treatment)

Optional Comprehensive Coverage

Deductible*: Single $25, Family $50

Basic Coverage: 80% coverage for fillings, extractions, routine oral surgery, endodontics, and periodontics.

Major Coverage: 50% coverage for inlays, onlays, crowns, dentures, fixed bridgework, and denture adjustments.

Calendar Year Maximum: $1,000 per covered person

Now that we’ve answered your basic questions about the Minnesota Public Employees Insurance Program, we’d like to help you learn more about PEIP’s participating insurance plans, coverage, costs and benefits. To get the additional answers you want -- or a free preliminary quote with no obligation -- you may contact our program’s general sales agent:

Innovo Benefits and Marketing
8220 Commonwealth Dr., #150
Eden Prairie, MN 55344
952-746-3101
800-829-5601
Fax 952-746-3108
Shawn@innovomn.com

Or get more information by contacting us directly:

Public Employees Insurance Program (PEIP)
c/o Minnesota Management & Budget
400 Centennial Office Building
658 Cedar Street
St. Paul, MN 55155

The Public Employees Insurance Program (PEIP) is offering group Medicare supplemental insurance to all former public retirees. To qualify, you must:

  • Be retired and receiving a pension from a public employer
  • Be age 65 or older
  • Be under age 65 and receiving a public pension disability benefit
  • Have Medicare parts A and B
  • Have other health insurance coverage currently in force
  • Be a resident of Minnesota
The coverage is also available for spouses age 65 and older covered by Medicare part A and B.

The PEIP Retiree Health plan is a joint venture between the Minnesota Management & Budget, Blue Cross Blue Shield, HealthPartners, Medica, and UCare. Availability may vary in some areas of the state.

The PEIP Retiree Health open enrollment is usually from early November through late December for a January 1 effective date.

You may receive additional information by making a no-obligation telephone call to Innovo at 952-746-3101 or 800-829-5601.

 


 


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Minnesota Management & Budget | 400 Centennial Office Building | 658 Cedar Street | Saint Paul, MN 55155
Equal Opportunity Employer