HOUSE BILL No. 5695

December 10, 2009, Introduced by Rep. Dillon and referred to the Committee on Public Employee Health Care Reform.

A bill to amend 1943 PA 240, entitled

"State employees' retirement act,"

by amending section 20d (MCL 38.20d), as amended by 2002 PA 93.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 20d. (1) On and after July 1, 1974, hospitalization and

medical coverage insurance premium payable by any retirant or his

or her beneficiary and his or her dependents under any group health

plan authorized by the Michigan civil service commission and the

department of management and budget shall be paid by the retirement

board from the health insurance reserve fund created in section 11.

The amount payable shall be in the same proportion of premium

payable by the state of Michigan for the classified employees

occupying positions in the state civil service. The hospitalization

and medical insurance premium payable shall be paid from

appropriations made for this purpose to the health insurance

reserve fund sufficient to cover the premium payment needed to be

made. Coverage provided and plans authorized under this section

shall be provided and authorized in accordance with the Michigan

health benefits program act. Coverage provided and plans authorized

in accordance with the Michigan health benefits program act shall

be provided and authorized subject to section 21 of the Michigan

health benefits program act.

(2) Effective January 1, 1988, 90% of the premium payable by a

retirant or the retirant's beneficiary and his or her dependents

for dental coverage or vision coverage, or both, under any group

plan authorized by the Michigan civil service commission and the

department of management and budget shall be paid by the retirement

board from the health insurance reserve fund created in section 11.

(3) The department of management and budget shall calculate

for each fiscal year any cost savings that have accrued to this

state as a result of the implementation of 1996 PA 487 over the

costs that would have been incurred by this state to fund premiums

payable pursuant to section 68 had 1996 PA 487 not been

implemented. The total amount of the cost savings, if any, shall be

allocated to the health advance funding subaccount created under

section 11(9).

(4) On and after March 31, 1997, the retirement system shall

also pay health insurance premiums described in this section in the

manner prescribed in section 68.

(5) For purposes of this section, "retirant" includes a person

who retires under section 306 or 410 of the Michigan military act,