HB 6237

HOUSE BILL NO. 6237
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 the public employer's
employees or elected public officials shall pay no not 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 the public employer's payments for medical benefit
plan costs among its the public employer's employees and elected public
officials as it the
public employer 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 a 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 the public employer's employees
or elected public officials shall pay not less 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 the public employer's payments for medical benefit
plan costs among the public employer's employees and elected public officials
as the public employer 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 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, 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 years:
(a) January
1, 2027 to December 31, 2027, 2.2 times the amount of single-person coverage.
(b) January
1, 2028 to December 31, 2028, 2.3 times the amount of single-person coverage.
(c) On and
after January 1, 2029, 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 the public employer's
governing body each year, prior to before 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 under
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
the public employer offers or
contributes to for its the public employer's 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 the public employer 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 the public employer offers
or contributes to for the public employer's 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 collective
bargaining agreement or contract until the stated expiration date of the collective
bargaining agreement or contract or the date the collective bargaining
agreement or 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), if 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.