SB-0543, As Passed Senate, December 11, 2013

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 543

     A bill to amend 2011 PA 152, entitled

"Publicly funded health insurance contribution act,"

by amending section 4 (MCL 15.564).

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, 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, total annual costs

includes 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 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. Each For purposes of this

section, each elected public official who participates in a medical

benefit plan offered by a public employer shall be 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.