Bill Text: MI SB1130 | 2023-2024 | 102nd Legislature | Engrossed
Bill Title: Public employees and officers: compensation and benefits; public employer contribution to medical benefit plan; modify. Amends sec. 3 of 2011 PA 152 (MCL 15.563).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2024-12-13 - Referred To Committee On Government Operations [SB1130 Detail]
Download: Michigan-2023-SB1130-Engrossed.html
Substitute For
SENATE BILL NO. 1130
A bill to amend 2011 PA 152, entitled
"Publicly funded health insurance contribution act,"
by amending the title and section 3 (MCL 15.563), section 3 as amended by 2018 PA 477, and by adding section 3a.
The people of the state of michigan enact:
An act to limit regulate a public employer's expenditures for employee medical benefit plans; to provide the power and duties of certain state agencies and officials; local governmental officers and entities; to provide for exceptions; and to provide for sanctions.
Sec. 3. (1) Except as otherwise provided in this act and subject to sections 3a and 4a, a public employer that offers or contributes to a medical benefit plan for its employees or elected public officials shall pay no more of the annual costs or illustrative rate and any payments for reimbursement of co-pays, deductibles, or payments into health savings accounts, flexible spending accounts, or similar accounts used for health care costs, than a total amount equal to $5,500.00 times the number of employees and elected public officials with single-person coverage, $11,000.00 times the number of employees and elected public officials with individual-and-spouse coverage or individual-plus-1-nonspouse-dependent coverage, plus $15,000.00 times the number of employees and elected public officials with family coverage, for a medical benefit plan coverage year beginning on or after January 1, 2012. A public employer may allocate its payments for medical benefit plan costs among its employees and elected public officials as it sees fit. By October 1 of each year after 2011 and before 2019, the state treasurer shall adjust the maximum payment permitted under this subsection for each coverage category for medical benefit plan coverage years beginning the succeeding calendar year, based on the change in the medical care component of the United States Consumer Price Index for the most recent 12-month period for which data are available from the United States Department of Labor, Bureau of Labor Statistics. By April 1 of each year after 2018, the state treasurer shall adjust the maximum payment permitted under this subsection for each coverage category for medical benefit plan coverage years beginning the succeeding calendar year, based on the change in the medical care component of the United States Consumer Price Index for the most recent 12-month period for which data are available from the United States Department of Labor, Bureau of Labor Statistics.
(2) For a medical benefit plan coverage year beginning January 1, 2014 through December 31, 2014, the multiplier used to calculate the maximum public employer payment under subsection (1) is $12,250.00 for employees and elected public officials with individual-and-spouse coverage or individual-plus-1-nonspouse-dependent coverage. The state treasurer shall adjust the multiplier each year as provided in subsection (1).
(3) For purposes of calculating a public employer's maximum total annual medical benefit plan costs under subsection (1) or section 3a, "employee or elected public official" does not include an employee or elected public official who declines the medical benefit plan offered or contributed to by the public employer.
Sec. 3a. (1) Beginning January 1, 2025, a public employer that offers or contributes to a medical benefit plan, excluding any offers of medical benefit plan based on the patient protection and affordable care act, Public Law 111-148, as amended by the health care and education reconciliation act of 2010, Public Law 111-152, or other federal or state sponsored plan, for its employees or elected public officials shall pay not more than the following amounts for the annual costs or illustrative rate and any payments for reimbursement of co-pays, deductibles, or payments into health savings accounts, flexible spending accounts, or similar accounts used for health care costs for a medical benefit plan coverage year:
(a) $8,258.54 times the number of employees and elected public officials with single-person coverage.
(b) $17,271.17 times the number of employees and elected public officials with individual-and-spouse coverage or individual-plus-1-nonspouse-dependent coverage.
(c) $22,523.34 times the number of employees and elected public officials with family coverage.
(2) A public employer may allocate its payments for medical benefit plan costs among its employees and elected public officials as it sees fit. By April 1 of each year after 2024, the state treasurer shall adjust the maximum payment under this section for single-person coverage and family coverage for medical benefit plan coverage years beginning the succeeding calendar year, based on any change in the average of the Michigan health insurance rates, as approved by the department of insurance and financial services, or by 3%, whichever is greater. The adjustment for individual-and-spouse coverage or individual-plus-1-nonspouse-dependent coverage is as follows for the following medical benefit plan coverage year:
(a) January 1, 2026 to December 31, 2026, 2.2 times the amount of single-person coverage.
(b) January 1, 2027 to December 31, 2027, 2.3 times the amount of single-person coverage.
(c) On and after January 1, 2028, 2.4 times the amount of single-person coverage.
(3) If a collective bargaining agreement or other contract that is inconsistent with this section is in effect for 1 or more employees of a public employer on the effective date of the amendatory act that added this section, the requirements of this section do not apply to an employee covered by that contract until the collective bargaining agreement or other contract is amended. A public employer's expenditures for medical benefit plans under a collective bargaining agreement or other contract described in this section must be excluded from calculation of the public employer's payment under section 4a. This section applies to a public employer that did not elect to comply with section 4.
Enacting section 1. This amendatory act does not take effect unless Senate Bill No. 1129 of the 102nd Legislature is enacted into law.
