SENATE BILL No. 1046

 

 

December 18, 2009, Introduced by Senators JANSEN, SANBORN, GEORGE, KUIPERS, BISHOP and VAN WOERKOM and referred to the Committee on Government Operations and Reform.

 

 

 

     A bill to limit a public employer's portion of the cost of

 

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

 

"publicly funded health insurance contribution act".

 

     Sec. 3. As used in this act:

 

     (a) "Health insurance" means employee medical, dental, or

 

optical benefits.

 

     (b) "Public employer" means the state; a county, township,

 

village, city, school district, or other political subdivision of

 

the 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 otherwise provided in this act, a public

 

employer that offers health insurance to its employees or elected

 

officials shall pay no more than 80% of the premium or other cost

 

of the health insurance plan. However, a public employer shall pay

 

no more than 85% of the premium or other costs of a health

 

insurance plan that includes both wellness incentives for healthy

 

living and a health savings account as described in section 223 of

 

the internal revenue code of 1986, 26 USC 223, in combination with

 

a high deductible health plan.

 

     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, 2011.