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SB 1129

Public employees and officers: compensation and benefits; public employer contribution to medical benefit plan; modify. Amends sec. 4 of 2011 PA 152 (MCL 15.564).

2023-2024 Regular Session

Public employers must cover at least 80% of total annual medical plan costs for employees and officials starting 2025, with CBAs exempt until renewal.

referred to Committee on Government Operations
#insurance:healthbenefits #publicemployeesandofficers:compensationandbenefits
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Bill Summary · SB 1129

Summary — SB 1129 (amendment to 2011 PA 152; MCL 15.564)

Status: Referred to Committee on Government Operations
Introduced: February 6, 2025
Subject: Public employees/officers compensation & benefits; public employer contribution to medical benefit plans

Purpose

SB 1129 amends Michigan’s Publicly Funded Health Insurance Contribution Act to (1) establish a minimum public-employer contribution (an employer “floor”) toward employee medical benefit plan costs and (2) clarify calculation rules and interaction with existing collective bargaining agreements. The bill is tie‑barred to SB 1130, which sets corresponding dollar maximums.

Key provisions

  • Adds a new Section 4a to MCL 15.564 requiring that, beginning January 1, 2025, a public employer must pay not less than 80% of the “total annual costs” of all medical benefit plans it offers or contributes to for employees and elected public officials.
  • Defines “total annual costs” to include plan premium (or illustrative rate) and employer payments that reimburse copays, deductibles, and deposits to HSAs/FSAs, but excludes beneficiary-paid copayments/coinsurance/deductibles/out-of-pocket expenses, certain service fees, offers based on Medicare or other federal/state-sponsored plans, and federal/state taxes.
  • Requires each elected public official who participates in a public plan to pay at least 20% of the plan’s total annual costs.
  • Provides that collective bargaining agreements (CBAs) or other contracts in effect on the bill’s effective date that conflict with the new 80% floor will continue to govern until their stated expiration, extension, or renewal; employer expenditures under those contracts are excluded from the bill’s calculations.
  • Tie-bar: SB 1130 (companion bill) would set statutory maximum contribution amounts (caps) and annual adjustment rules. As summarized in companion materials, SB 1130 would set 2025 caps at about $8,259 (single), $17,271 (individual-and-spouse or individual-plus-one non‑spouse), and $22,523 (family) and require the State Treasurer to adjust them annually by Michigan health insurance rate changes or at least 3%. (SB 1129 and SB 1130 are intended to operate together.)

Who is affected

  • Public employers in Michigan (all levels except the State where the designated state official may elect to comply under certain rules).
  • Public employees and elected public officials who participate in employer-offered medical benefit plans.
  • Labor units and employers with existing CBAs — those CBAs remain controlling until expiration/renewal as described above.

Timing / procedural aspects

  • Effective: the 80% floor is specified to begin January 1, 2025.
  • The bill amends section 4 of 2011 PA 152 (MCL 15.564) and adds section 4a. Enactment may be conditioned on SB 1130 (tie‑bar language in substitute versions).
  • Status (as provided): introduced Feb 6, 2025; referred to Committee on Government Operations.

Fiscal impact (summary)

  • The change creates both a mandated minimum (80%) and—via SB 1130—a capped dollar maximum for employer contributions. If an employer currently contributes below 80%, it would need to increase spending to meet the floor. If at or above 80%, there would be no increase required. Because of varying local practices and the interplay with CBAs, a statewide total cost is not estimated in the analyses provided.

Notes

  • The bill preserves the ability of public employers to allocate employees’ shares of costs as they choose, and it excludes plans based on Medicare or other federal/state-sponsored plans from certain calculations.
  • Where CBAs exist, employers’ current expenditures under those CBAs are excluded from the new calculation until the contract is renegotiated or expires.

Compiled from official sources — confirm details with the bill’s official record.

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