Bill
SB 1130
Sets fixed maximum employer contributions for public health plans by coverage tier (single, spouse/other, family) with annual adjustments, tied to SB 1129's floor requirement for m
Status: Referred to Committee on Government Operations (Senate); passed Senate (Substitute S-3) 12/13/2024. Introduced: Nov 14, 2024 (sponsor: Sen. Kevin Hertel). Tie‑barred with SB 1129 (S-3).
Purpose
- To change how much public employers in Michigan must contribute toward employee and elected‑official medical benefit plans by (a) establishing a minimum employer contribution expressed as a percent of total plan costs (SB 1129) and (b) setting specific maximum dollar caps per coverage tier and rules for annual adjustment (SB 1130). The two bills are tied together and intended to operate jointly.
Key provisions (SB 1130 as passed Senate)
- Establishes statutory maximum employer contributions for medical benefit plan annual costs (including premiums/illustrative rates and employer payments that reimburse co‑pays, deductibles, or contributions to HSAs/FSAs):
- Single coverage: $8,258.54 per covered person (coverage year beginning Jan 1, 2025).
- Individual+spouse or individual+one non‑spouse dependent: $17,271.17 per covered person.
- Family coverage: $22,523.34 per covered person.
- Annual adjustments:
- By April 1 each year after 2024, the State Treasurer must adjust the single and family maximums for the next coverage year based on the change in the average Michigan health insurance rates (as approved by the Department of Insurance and Financial Services), or by 3%, whichever is greater.
- The spouse/one‑dependent tier will be set as a multiplier of single coverage:
- 2026: 2.2× single amount
- 2027: 2.3× single amount
- On/after 2028: 2.4× single amount
- Interaction with SB 1129 (tie‑bar): SB 1129 would require public employers to pay at least 80% of total annual costs of the medical plans they offer beginning Jan 1, 2025; SB 1130 caps employer payments by dollar tier. The enactment of SB 1130 is conditioned on SB 1129 being enacted.
- Collective bargaining and contracts: Existing collective bargaining agreements or other contracts in effect on the bill’s effective date that are inconsistent with the new requirements are exempt until their stated expiration, extension, renewal, or until amended after the effective date. Expenditures under such agreements are excluded from calculations under the act.
- Other technical: The bill excludes medical plans based on Medicare or other federal/state‑sponsored plans from certain calculations.
Who is affected
- Public employers across Michigan (state agencies, municipalities, school districts, counties, etc.).
- Public employees and elected officials who receive employer‑provided medical benefits.
- Labor unions and collective bargaining parties (because existing contracts are grandfathered until expiration/amendment).
- State Treasurer and Department of Insurance and Financial Services (administrative role for adjustments).
Fiscal impact
- The bills raise employer contribution caps and convert the 80% contribution cap (as previously written in law) into a required floor (per SB 1129). If current employer contributions are below 80%, employers may need to increase spending to meet the floor; if above the new dollar caps, the caps could limit future increases. The Senate fiscal analysis indicates a net cost cannot be precisely estimated at this time; adjustments and local impacts will vary.
Timing / Effective dates
- Most substantive changes are keyed to medical benefit plan coverage years beginning Jan 1, 2025. Annual adjustment deadlines (April 1) begin after 2024. Existing collective bargaining agreements are deferred until expiration/renewal. SB 1130’s enactment is contingent on SB 1129’s enactment.
Statutory reference
- Amends 2011 PA 152 (Publicly Funded Health Insurance Contribution Act); adds/edits MCL 15.563 et seq. (as shown in Substitute S‑3).
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
