Bill Text: MI SB1209 | 2017-2018 | 99th Legislature | Introduced
Bill Title: Labor; public service employment; calculation and allocation of medical benefit plan payments; subject to bargaining. Amends secs. 3 & 4 of 2011 PA 152 (MCL 15.563 & 15.564) & adds sec. 7a.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-12-06 - Reconsider Vote Postponed [SB1209 Detail]
Download: Michigan-2017-SB1209-Introduced.html
SENATE BILL No. 1209
November 27, 2018, Introduced by Senator PAVLOV and referred to the Committee on Education.
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 2013 PA 270 and section 4 as amended by 2013 PA 271, and
by adding section 7a.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 3. (1) Except as otherwise provided in this act, for a
medical benefit plan coverage year beginning on or after January 1,
2012, 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
under this subsection among its employees and elected public
officials as it sees fit. For a medical benefit plan coverage year
beginning on or after January 1, 2014 but on or before December 31,
2014, the multiplier used to calculate the maximum public employer
payment under this subsection is $12,250.00 for employees and
elected public officials with individual-and-spouse coverage or
individual-plus-1-nonspouse-dependent coverage, and must be
adjusted each year as provided in subsection (3). For purposes of
calculating a public employer's maximum total annual medical
benefit plan costs under this subsection, "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.
(2) For a medical benefit plan coverage year beginning on or
after the effective date of the amendatory act that added
subsection (4), a public employer that offers or contributes to a
medical benefit plan for its employees or elected public officials
shall pay 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 the following:
(a) For any employee or any elected public official with
single-person coverage, $6,560.52.
(b) For any employee or any elected public official with
individual-and-spouse coverage or individual-plus-1-nonspouse-
dependent coverage, $13,720.07.
(c) For any employee or any elected public official with
family coverage, $17,892.36.
(3) By October 1 of each year after 2011, the state treasurer
shall
adjust the maximum payment permitted under this subsection
subsections (1) and (2) 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.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) shall be
$12,250.00
for employees and elected public officials with
individual-and-spouse
coverage or individual-plus-1-nonspouse-
dependent
coverage and shall be adjusted 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),
"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.
(4) The provisions of this section and section 4, as amended
by the amendatory act that added this subsection, apply to a
collective bargaining agreement or other contract that is executed,
extended, or renewed on or 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 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 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 Except as otherwise
provided in this section, for a
medical
benefit plan coverage years year
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, total annual costs
includes 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 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,
subsection, each elected public official who participates
in a medical benefit plan offered by a public employer shall be
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.
(3) For a medical benefit plan coverage year beginning on or
after the effective date of the amendatory act that added this
subsection, for an employee or elected public official of a public
employer, the public employer shall pay not more than 80% of the
costs of the medical benefits for the employee or elected public
official under the medical benefit plan that the public employer
offers or contributes to for the employee or elected public
official. For purposes of this subsection, costs of medical
benefits includes 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 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.
Sec. 7a. This act does not prohibit a public employer from
paying a premium or illustrative rate that is based on a
combination of the claims experience of the public employer's
employees and elected public officials and the claims experience of
individuals retired from the public employer.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.
