September 21, 2016, Introduced by Rep. Lucido and referred to the Committee on Appropriations.
A bill to amend 2011 PA 152, entitled
"Publicly funded health insurance contribution act,"
by amending sections 2, 4, 5, and 7 (MCL 15.562, 15.564, 15.565,
and 15.567), section 2 as amended by 2013 PA 269, section 4 as
amended by 2013 PA 271, and section 5 as amended by 2013 PA 272;
and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. As used in this act:
(a)
"Designated state official" means:
(i) For an election affecting employees and officers
in the
judicial
branch of state government, the state court administrator.
(ii) For an election affecting senate employees and officers,
the
secretary of the senate.
(iii) For an election affecting house of representatives
employees
and officers, the clerk of the house.
(iv) For an election affecting legislative council
employees,
the
legislative council.
(v) For an election affecting employees in the state
classified
service, the civil service commission.
(vi) For an election affecting executive branch
employees who
are
not in the state classified service, the state employer.
(a) (b)
"Flexible spending
account" means a medical expense
flexible spending account in conjunction with a cafeteria plan as
permitted under the federal internal revenue code of 1986.
(b) (c)
"Health savings account"
means an account as permitted
under section 223 of the internal revenue code of 1986, 26 USC 223.
(c) (d)
"Local unit of
government" means a city, village,
township, or county, a municipal electric utility system as defined
in section 4 of the Michigan energy employment act of 1976, 1976 PA
448, MCL 460.804, an authority created under chapter VIA of the
aeronautics code of the state of Michigan, 1945 PA 327, MCL 259.108
to 259.125c, or an authority created under 1939 PA 147, MCL 119.51
to 119.62.
(d) (e)
"Medical benefit plan"
means a plan established and
maintained by a carrier, a voluntary employees' beneficiary
association described in section 501(c)(9) of the internal revenue
code of 1986, 26 USC 501, or by 1 or more public employers, that
provides for the payment of medical benefits, including, but not
limited to, hospital and physician services, prescription drugs,
and related benefits, for public employees or elected public
officials. Medical benefit plan does not include benefits provided
to individuals retired from a public employer or a public
employer's contributions to a fund used for the sole purpose of
funding health care benefits that are available to a public
employee or an elected public official only upon retirement or
separation from service.
(e) (f)
"Medical benefit plan
costs" does not include a
payment by the public employer to an employee or elected public
official in lieu of medical benefit plan coverage and, for a
medical
benefit plan coverage year beginning after the later of
January
1, 2014, or the effective date of the amendatory act that
added
this subdivision, includes, but is
not limited to, all of the
following:
(i) Any amount that the public employer pays directly or
indirectly for the assessment levied pursuant to the health
insurance claims assessment act, 2011 PA 142, MCL 550.1731 to
550.1741.
(ii) Insurance agent or company commissions.
(iii) Any additional amount the public employer is required to
pay as a fee or tax under the patient protection and affordable
care act, Public Law 111-148, as amended by the federal health care
and education reconciliation act of 2010, Public Law 111-152.
(f) (g)
"Medical benefit plan coverage
year" means the 12-
month period after the effective date of the contractual or self-
insured medical coverage plan that a public employer provides to
its employees or public officials.
(g) (h)
"Public employer" means
this state; a local unit of
government or other political subdivision of this state; any
intergovernmental, metropolitan, or local department, agency, or
authority, or other local political subdivision; a school district,
a public school academy, or an intermediate school district, as
those terms are defined in sections 4 to 6 of the revised school
code, 1976 PA 451, MCL 380.4 to 380.6; a community college or
junior college described in section 7 of article VIII of the state
constitution of 1963; or an institution of higher education
described in section 4 of article VIII of the state constitution of
1963.
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 Except as otherwise
provided in this act, for medical
benefit
plan coverage years beginning on or after January 1, 2012,
March 1, 2017, 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. 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.
Sec. 5. (1) If a collective bargaining agreement or other
contract
that is inconsistent with sections 3 and section 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 March 1, 2017,
section 4 does 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 be is excluded
from calculation of the public employer's maximum payment under
section
4. The requirements of sections 3 and 4 apply Section 4
applies to any extension or renewal of the contract.
(2) A collective bargaining agreement or other contract that
is
executed on or after September 27, 2011 March 1, 2017 shall not
include
terms that are inconsistent with the requirements of
sections
3 and 4.section 4.
Sec.
7. (1) The requirements of this act apply This act
applies to medical benefit plans of all public employees and
elected public officials to the greatest extent consistent with
constitutionally allocated powers, whether or not a public employee
is a member of a collective bargaining unit.
(2)
If a court finds the requirements of section 3 to be
invalid,
the expenditure limit in section 4 shall apply to a public
employer
that does not exempt itself under section 8, except that
the
requirement for a majority vote of the governing body of the
public
employer in section 4 shall not apply. If a court finds
section
4 to be invalid, the expenditure limit in section 3 shall
apply
to each public employer that does not exempt itself under
section
8.
Enacting section 1. Section 3 of the publicly funded health
insurance contribution act, 2011 PA 152, MCL 15.563, is repealed.
Enacting section 2. This amendatory act takes effect March 1,
2017.