Health Care Reform

Public Employer Medical Benefits Caps

Late August, 2011 brought significant change for public employers through Public Act 152 (PA 152) which creates a hard cap on the amount a public employer may contribute to a medical benefit plan for its employees and/or elected officials. SB 7 provides an option to elect an 80% contribution cap rather than the hard cap, and it contains a provision to allow a local unit to opt-out entirely.  Read the bill in its entirety along with our summary.

During a webinar with the State Department of Treasury on December 13, 2011, Treasury representatives formally reported that they are NOT collecting resolutions related to PA 152; proof of compliance is not required.  However, some feel more secure by submitting their resolutions to the State.  Those who wish to do so can email proof of PA 152 compliance to Treasury, or mail to:

Michigan Department of Treasury
Office of Revenue and Tax Analysis
PO Box 30722
Lansing MI 48909

Sample PA 152 Resolutions

80/20:

Novi

Hard Cap:

Grosse Pointe

Opt Out:

Battle Creek

Bronson

Empire

Essexville

Saugatuck

Please share a sample if you have one!

Health Insurance Claims Assessment (HICA):

On September 20, 2011 Governor Snyder signed legislation creating the Health Insurance Claims Assessment (HICA) Act (P. A. 142 of 2011).  Beginning January 1, 2012, certain third party administrators, carriers and self-insured entities are required to pay an assessment on certain paid health care claims. The State Treasury website provides detailed information, forms and FAQ’s.

National Health Care Reform:

The President signed into law sweeping national health care reform in late March, 2010.  What will this mean for public employers, today, next month, next year?  We’ll continue to add to our informational resources on this topic as the impacts for municipal employers become better defined.  Below are some links and summaries that provide information on what is known at this point.

The Kaiser Family Foundation is a non-profit private foundation dedicated to producing and communicating the best possible analysis and information on health issues.  They provide an excellent summary of the new health care reform law.

We will remain actively engaged with National League of Cities and other key organizations to provide members with the latest developments on health care reform. 

Implementation issues are coming quickly!  Click here for a comprehensive timeline prepared by the Kaiser Family Foundation.