SB 1136

SENATE BILL NO. 1136
A bill to amend 2011 PA 152, entitled
"Publicly funded health insurance contribution
act,"
by amending the title and sections 3, 4, and 5 (MCL
15.563, 15.564, and 15.565), section 3 as amended by 2018 PA 477, section 4 as
amended by 2013 PA 271, and section 5 as amended by 2013 PA 272, and by adding
sections 3a and 4a.
the people of the state of michigan enact:
TITLE
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, 2027, 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 2026, 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 medical care component of 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, 2028 to December 31, 2028, 2.2 times the amount of single-person coverage.
(b) January
1, 2029 to December 31, 2029, 2.3 times the amount of single-person coverage.
(c) On and
after January 1, 2030, 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.
Sec. 4. (1) By a majority vote of its governing body each
year, prior to the beginning of the medical benefit plan coverage year, a
public employer, excluding this state, may elect to comply with this section
for a medical benefit plan coverage year instead of the requirements in section
3. The designated state official may elect to comply with this section instead
of section 3 as to medical benefit plans for state employees and state
officers.
(2) For Subject to sections
3a and 4a, for medical benefit plan coverage years beginning on or after
January 1, 2012, a public employer shall pay not more than 80% of the total
annual costs of all of the medical benefit plans it offers or contributes to
for its employees and elected public officials. For purposes of this subsection and section 4a, total annual costs includes include the
premium or illustrative rate of the medical benefit plan and all employer
payments for reimbursement of co-pays, deductibles, and payments into health
savings accounts, flexible spending accounts, or similar accounts used for
health care but does do not include beneficiary-paid copayments,
coinsurance, deductibles, other out-of-pocket expenses, other service-related
fees that are assessed to the coverage beneficiary, or beneficiary payments
into health savings accounts, flexible spending accounts, or similar accounts
used for health care, any offers of medical benefit
plans for employees 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, other federal or state sponsored plan, or any
federal or state taxes. For purposes of this section, each elected
public official who participates in a medical benefit plan offered by a public
employer shall be is
required to pay 20% or more of the total annual costs of that plan. The
public employer may allocate the employees' share of total annual costs of the
medical benefit plans among the employees of the public employer as it sees
fit.
Sec. 4a. (1)
Beginning January 1, 2027, a public employer shall pay not less than 80% of the
total annual costs of all of the medical benefit plans it offers or contributes
to for its employees and elected public officials.
(2) 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 stated expiration date of the contract or the date the
contract is extended or renewed. A public employer's expenditures for medical
benefit plans under a collective bargaining agreement or other contract
described in this subsection must be excluded from calculation of the public
employer's payment under this section.
Sec. 5. (1) If Except as otherwise provided in subsection (3), a
collective bargaining agreement or other contract that is inconsistent with
sections 3 and 4 is in effect for 1 or more employees of a public employer on
September 27, 2011, the requirements of section 3 or 4 do not apply to an
employee covered by that contract until the contract expires. A public
employer's expenditures for medical benefit plans under a collective bargaining
agreement or other contract described in this subsection shall must be
excluded from calculation of the public employer's maximum payment under
section 4. The requirements of sections 3 and 4 apply to any extension or
renewal of the contract.
(2) A Except as otherwise
provided in sections 3a(3) and 4a(2), a collective bargaining agreement
or other contract that is executed on or after September 27, 2011 shall must not
include terms that are inconsistent with the requirements of sections 3 and 4.
(3) A
collective bargaining agreement or other contract that is executed on or after
January 1, 2027 must not include terms that are inconsistent with the
requirements of section 4a.