Friday, January 24, 2020

Overview of 2011 PA 152

In 2011, the State of Michigan passed Public Act 152, which requires that local units of government place a hard cap on their health care, institute an 80/20 cost sharing arrangement or opt out with 2/3 vote of the governing body.

PA 152 Compliance

Section 3 – Hard Caps
Beginning on or after January 1, 2013, a public employer may not pay more of the annual costs for medical benefit plans than a total amount equal to:

  • $5,692.50, times the number of employees with single person coverage
  • $11,385.00, times the number of employees with individual and spouse coverage
  • $15,525.00, times the number of employees with family coverage

These amounts will be adjusted on October 1, 2013, for medical benefit plan coverage years beginning on or after January 1, 2014.

Section 4 - 80/20
A public employer, by a majority vote of its governing body for each plan year, may elect the 80% employer cap:

  • A public employer may not pay more than 80% of the total annual costs of all the medical benefit plans it offers or contributes to for its employees and elected public officials

Section 5 – Exclusions

  • Sections 3 and 4 do not apply to existing collective bargaining agreements or other contracts until the agreements or contracts expire, are extended, or renewed
  • Any collective bargaining agreement executed on or after

September 15, 2011, must comply with sections 3 and 4

Section 8 – Exemption
By a 2/3 vote of their governing body each year, eligible local units of government may exempt themselves from the requirements of 2011 Public Act 152 for the next succeeding year.


MERS Social Media MERS Facebook MERS TwitterMERS LinkedInMERS Youtube

The information contained in this Web site is being made available as a public service. The information is not intended to constitute legal or investment advice, or to replace official versions of that information. Benefit Estimates or Service Credit Purchase estimates requested through this Web site are not official descriptions of any benefits, and do not represent a promise by MERS to provide any benefit(s) to any person(s). No one can detrimentally rely upon the information provided in, or requested through this Web site. MERS reserves the right to correct any errors, and presents this information without warranties, express or implied, regarding the information?s accuracy, timeliness or completeness. If you believe the information is inaccurate, out-of-date, or incomplete, or if you have problems accessing or reading the information, please call MERS at 800.767.MERS (6377).