April 21, 2011, Introduced by Reps. Johnson, Heise, McMillin, Foster, Farrington, Lund, Crawford, Kowall, Jenkins, Rogers, Muxlow, Damrow, MacMaster, Price, Knollenberg, Cotter, Outman and MacGregor and referred to the Committee on Oversight, Reform, and Ethics.
A bill to limit a public employer's expenditures for health
insurance benefits; and to provide for exceptions.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"public employer health insurance cap act".
Sec. 3. As used in this act:
(a) "Health insurance" means employee medical, dental, or
optical benefits.
(b) "Public employer" means this state; a county, township,
village, city, school district, or other political subdivision of
this state; an authority; a public institution of higher education;
or any other entity jointly created by 2 or more public employers.
Sec. 5. Except as provided in section 7, a public employer
that offers health insurance to its employees through an insurance
carrier or through self-insurance shall pay no more of the annual
premium or illustrative annual premium cost than $5,000.00 for
single-person coverage, $10,000.00 for 2-person coverage, or
$13,000.00 for family coverage. The state treasurer shall adjust
the maximum payment permitted under this section by an amount
determined by the state treasurer at the end of each calendar year
to reflect the cumulative annual percentage change in the consumer
price index. As used in this section, "consumer price index" means
the most comprehensive index of consumer prices available for this
state from the bureau of labor statistics of the United States
department of labor.
Sec. 7. If a collective bargaining agreement that is
inconsistent with section 5 is in effect for a group of employees
of a public employer on the effective date of this act, the
requirements of section 5 do not apply to that group of employees
until the collective bargaining agreement expires. The requirements
of section 5 apply to any extension or renewal of the agreement.
Sec. 9. The requirements of section 5 apply to all public
employees to the greatest extent consistent with constitutionally
allocated powers.
Enacting section 1. This act takes effect January 1, 2013.