Signed by Governor Rick Snyder

Vote Smart's Synopsis:

Vote to pass a bill that limits the amount of money that a public employer can contribute to the cost of employee medical benefit plans.

Highlights:

• Limits the amount of money that a public employer can pay toward the annual premium or other costs for medical benefits for its employees to the following amounts for plans beginning January 1, 2012 (Sec. 3):
• $5,500 for single person coverage;
• $11,000 for individual and spouse coverage;
• $12,500 for individual and child or children coverage; and
• $15,000 for family coverage.

• Authorizes a public employer, with a majority vote of its governing body, to chose to limit public employer contributions to 80 percent of the total costs of medical benefit plans that it offers instead of adopting the limits imposed in Section 3 (Sec. 4).

• Defines "public employer" as including, but not limited to, all of the following entities (Sec. 2):
• The state;
• A local unit of government;
• Any intergovernmental, metropolitan, or local department, agency, or authority, or other political subdivision;
• School districts;
• Community or junior colleges; and
• Institutions of higher education.

• Specifies that if a collective bargaining agreement for a group of employees is in effect prior to the effective date of this act then the provisions of Sections 3 and 4 do not apply to that group of employees until the contract expires (Sec. 5).

• Authorizes public employers to deduct the employee's or elected public official's portion of the cost of a medical benefit plan from compensation due to the employee or elected official (Sec. 6).

• Authorizes a local unit of government, with a vote of 2/3 of its governing body, to exempt itself from the requirements of this act for the next succeeding medical benefit plan coverage year, or to extend that exemption for a successive year (Sec. 8).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes the "Publicly Funded Health Insurance Contribution Act", that requires all public employees to pay a certain percentage of the overall cost of medical benefit plans, and limits a public employer's portion of the cost of those plans.

Highlights:

• Prohibits public employers who offer medical benefit plans to their employees or to public elected officials from paying more than 80 percent of the total annual cost for that plan (Sec. 5).

• Defines "medical benefit plan" as a plan established and maintained by a carrier or one or more public employers that provides for the payment of medical, optical, or dental benefits, including, but not limited to the following (Sec. 3):
• Hospital and physician services;
• Prescription drugs; and
• Related benefits to public employees.

• Authorizes public employers to deduct the covered employee's portion of the cost of a medical benefit plan from the employee's annual compensation (Sec. 9).

• Requires elected officials who participate in a medical benefit plan offered by a public employer to pay a minimum of 20 percent of the annual cost of that plan (Sec. 5).

• Specifies that a local government unit may exempt itself from the requirements of this act by a 2/3 vote of its governing body (Sec. 15).

• This is a substitute bill sponsored by Sen. Mark Jansen.

Full Bill Text