"(4) A public employer shall not increase its contribution to the medical benefit plan of a legislator who becomes a local official after voting on this bill or has other conflict of interests.".

Substitute For

HOUSE BILL NO. 6058

"Publicly funded health insurance contribution act,"

by amending the title and sections 3, 4, and 5 (MCL 15.563, 15.564, and 15.565), section 3 as amended by 2018 PA 477, section 4 as amended by 2013 PA 271, and section 5 as amended by 2013 PA 272, and by adding sections 3a and 4a.

The people of the state of michigan enact:

TITLE

An act to limit regulate a public employer's expenditures for employee medical benefit plans; to provide the power and duties of certain state agencies and officials; local governmental officers and entities; to provide for exceptions; and to provide for sanctions.

Sec. 3. (1) Except as otherwise provided in this act and subject to sections 3a and 4a, 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 among its employees and elected public officials as it sees fit. By October 1 of each year after 2011 and before 2019, the state treasurer shall adjust the maximum payment permitted under this subsection 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. By April 1 of each year after 2018, the state treasurer shall adjust the maximum payment permitted under this subsection 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.

(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) is $12,250.00 for employees and elected public officials with individual-and-spouse coverage or individual-plus-1-nonspouse-dependent coverage. The state treasurer shall adjust the multiplier 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) or section 3a, "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.

Sec. 3a. (1) Beginning January 1, 2025, a public employer that offers or contributes to a medical benefit plan, excluding any offers of medical benefit plan 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, or other federal or state sponsored plan, for its employees or elected public officials shall pay not more than the following amounts for 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 for a medical benefit plan coverage year:

(a) $8,258.54 times the number of employees and elected public officials with single-person coverage.

(b) $17,271.17 times the number of employees and elected public officials with individual-and-spouse coverage or individual-plus-1-nonspouse-dependent coverage.

(2) A public employer may allocate its payments for medical benefit plan costs among its employees and elected public officials as it sees fit. By April 1 of each year after 2024, the state treasurer shall adjust the maximum payment under this section for single-person coverage and family coverage for medical benefit plan coverage years beginning the succeeding calendar year, based on any change in the medical care component of the average of the Michigan health insurance rates, as approved by the department of insurance and financial services, or by 3%, whichever is greater. The adjustment for individual-and-spouse coverage or individual-plus-1-nonspouse-dependent coverage is as follows for the following medical benefit plan coverage year:

(a) January 1, 2026 to December 31, 2026, 2.2 times the amount of single-person coverage.

(b) January 1, 2027 to December 31, 2027, 2.3 times the amount of single-person coverage.

(3) 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 collective bargaining agreement or other contract is amended. A public employer's expenditures for medical benefit plans under a collective bargaining agreement or other contract described in this section must be excluded from calculation of the public employer's payment under section 4a. This section applies to a public employer that did not elect to comply with section 4.

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.