SB-0542, As Passed Senate, December 11, 2013

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 542

(As amended December 10, 2013)

     A bill to amend 2011 PA 152, entitled

"Publicly funded health insurance contribution act,"

by amending section 3 (MCL 15.563).

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 3. (1) Except as otherwise provided in this act, 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],

Senate Bill No. 542 (H-1) as amended December 10, 2013

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, the state treasurer shall adjust the

maximum payment permitted under this section 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) 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.

     Enacting section 1. Section 3(1) and (3) of the publicly

funded health insurance contribution act, 2011 PA 152, MCL 15.563,

as amended or added by this amendatory act, clarifies the original

Senate Bill No. 542 (H-1) as amended December 10, 2013

intent of the legislature that [the term "family coverage" includes

individual-plus-1-nonspouse-dependent coverage and that] a public

employee or elected official who declines the public employer's

medical benefit plan coverage is not an employee or elected public

official for purposes of calculating the public employer's maximum

total annual medical benefit plan costs. These amendments are

curative and apply retroactively.