SENATE BILL NO. 1129

A bill to amend 2011 PA 152, entitled

"Publicly funded health insurance contribution act,"

by amending section 4 (MCL 15.564), as amended by 2013 PA 271.

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 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.

(3) A public employer shall pay not more than the following percentage of the total annual costs of all of the medical benefit plans it offers or contributes to for its employees and elected public officials:

(a) For medical benefit plan coverage year beginning January 1, 2025, to December 31, 2025, 80.3%.

(b) For medical benefit plan coverage year beginning January 1, 2026, to December 31, 2026, 80.6%.

(c) For medical benefit plan coverage year beginning January 1, 2027, to December 31, 2027, 80.9%.

(d) For medical benefit plan coverage year beginning January 1, 2028, to December 31, 2028, 81.2%.

(e) For medical benefit plan coverage year beginning on and after January 1, 2029, 81.5%.

(4) The maximum public employer payments described under subsection (3) must be concurred upon by each collective bargaining unit. A public employer may have different maximum payments with each collective bargaining unit. A public employer shall set the public employer's maximum payment for employees who are not members of a collective bargaining unit in accordance with this section.

(5) For purposes of this subsection, subsections (2) and (3), 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.