Michigan Law Caps Public Employer Payments For Health Insurance

September 29, 2011 (PLANSPONSOR.com) – A law has been signed into legislation in Michigan that will cap how much public employers in the state will pay for health care plans and will require employees to pay the rest. 

According to an article from Business Insurance, under the measure, S.B.7, health care premium contributions by public employers, such as local governments and school districts, will be capped at $5,500 for single coverage, $11,000 for individual and spousal coverage, and $15,000 for family coverage.  

The cap will go into effect on January 1, 2012. It will be adjusted annually by the state treasurer to reflect changes in the medical care component of the Consumer Price Index.

Alternatively, public employers could require employees to pay 20% of the health insurance premium, the same percentage that employees hired on or after April 1, 2010, are required to pay. Those hired before then pay 10% of the premium.