HOUSE BILL No. 6531

 

 

November 27, 2018, Introduced by Rep. Lower and referred to the Committee on Local Government.

 

     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.