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Posted: 02/06/13

PA 152 provides
health care options

by CHRIS GRAY
Observer Staff Writer
      As of Sept. 28, 2011, Public Act (PA) 152 became Michigan law. It provides direction for state and local governments as well as public schools, colleges and universities on how to pay for medical health benefits using two options.
       The first is a hard cap that limits how much an employer contributes, with the limits set using the consumer price index. For 2013, the hard cap is $5,692 for single person coverage, $11,385 for individual and spouse coverage and $15,525 for family coverage. These numbers represent a 3.5 percent increase from the prior amounts.
       The hard cap is the default position unless a governing body makes a different decision on a yearly basis.
       The second option is to have employers pay 80 percent of the costs and for employees and elected officials to contribute 20 percent.
       Certain governing bodies, such as cities and villages, can opt out of the law with a 2/3 vote and provide benefits the way they see fit. This comes with a price, though, as those groups lose 10 percent of school aid payments or economic vitality payments provided by statutory revenue sharing.
       Those that operate under the hard cap or 80/20 split or legally opt out are not penalized.


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