Substitute For

SENATE BILL NO. 1129

"Publicly funded health insurance contribution act,"

by amending sections 4 and 5 (MCL 15.564 and 15.565), section 4 as amended by 2013 PA 271 and section 5 as amended by 2013 PA 272, and by adding section 4a.

The people of the state of michigan enact:

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, 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.

(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, 2025 must not include terms that are inconsistent with the requirements of section 4a.

Enacting section 1. This amendatory act does not take effect unless Senate Bill No. 1130 of the 102nd Legislature is enacted into law.