HOUSE BILL NO. 6058 A bill to amend 2011 PA 152, entitled "Publicly funded health insurance contribution act," by amending sections 3 and 4 (MCL 15.563 and 15.564), section 3 as amended by 2018 PA 477 and section 4 as amended by 2013 PA 271. the people of the state of michigan enact: Sec. 3. (1) Except as otherwise provided in this act, 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) Except as otherwise provided in this act, 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 any of the following for a medical benefit plan coverage year beginning January 1, 2025, to December 31, 2025, $8,258.54 times the number of employees and elected public officials with single-person coverage, $17,271.17 times the number of employees and elected public officials with individual-and-spouse coverage or individual-plus-1-nonspouse-dependent coverage, plus $22,523.34 times the number of employees and elected public officials with family coverage. (3) 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 permitted 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 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. (4) A public employer may bargain an amount over the maximum amounts provided for under subsections (2) and (3) as follows: (a) For the medical benefit coverage year beginning January 1, 2025, to December 31, 2025, 101%. (b) For the medical benefit coverage year beginning January 1, 2026, to December 31, 2026, 102%. (c) For the medical benefit coverage year beginning January 1, 2027, to December 31, 2027, 103%. (d) For the medical benefit coverage year beginning January 1, 2028, to December 31, 2028, 104%. (e) For the medical benefit coverage year beginning on and after January 1, 2029, 105%. (5) The maximum amounts set under this section must be concurred upon by each bargaining unit, and a public employer may have a different maximum amount set with each bargaining unit. A public employer shall set the maximum amount for employees who are not members of collective bargaining units. (6) (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). (7) (3) For purposes of calculating a public employer's maximum total annual medical benefit plan costs under subsection (1), this section, "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. (6) Subsections (3) and (4) do not apply to any collective bargaining agreements that expire after the effective date of the amendatory act that added this subsection. 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 medical benefit plan coverage years beginning on or after January 1, 2012 to December 31, 2024, 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 medical benefit plan coverage years beginning on or after January 1, 2025, 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. For purposes of this subsection, 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. 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.
HOUSE BILL NO. 6058
A bill to amend 2011 PA 152, entitled
"Publicly funded health insurance contribution act,"
by amending sections 3 and 4 (MCL 15.563 and 15.564), section 3 as amended by 2018 PA 477 and section 4 as amended by 2013 PA 271.
the people of the state of michigan enact:
Sec. 3. (1) Except as otherwise provided in this act, 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) Except as otherwise provided in this act, 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 any of the following for a medical benefit plan coverage year beginning January 1, 2025, to December 31, 2025, $8,258.54 times the number of employees and elected public officials with single-person coverage, $17,271.17 times the number of employees and elected public officials with individual-and-spouse coverage or individual-plus-1-nonspouse-dependent coverage, plus $22,523.34 times the number of employees and elected public officials with family coverage.
(3) 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 permitted 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 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.
(4) A public employer may bargain an amount over the maximum amounts provided for under subsections (2) and (3) as follows:
(a) For the medical benefit coverage year beginning January 1, 2025, to December 31, 2025, 101%.
(b) For the medical benefit coverage year beginning January 1, 2026, to December 31, 2026, 102%.
(c) For the medical benefit coverage year beginning January 1, 2027, to December 31, 2027, 103%.
(d) For the medical benefit coverage year beginning January 1, 2028, to December 31, 2028, 104%.
(e) For the medical benefit coverage year beginning on and after January 1, 2029, 105%.
(5) The maximum amounts set under this section must be concurred upon by each bargaining unit, and a public employer may have a different maximum amount set with each bargaining unit. A public employer shall set the maximum amount for employees who are not members of collective bargaining units.
(6) (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).
(7) (3) For purposes of calculating a public employer's maximum total annual medical benefit plan costs under subsection (1), this section, "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.
(6) Subsections (3) and (4) do not apply to any collective bargaining agreements that expire after the effective date of the amendatory act that added this subsection.
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 medical benefit plan coverage years beginning on or after January 1, 2012 to December 31, 2024, 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 medical benefit plan coverage years beginning on or after January 1, 2025, 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. For purposes of this subsection, 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. 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.