Late August, 2011 brought significant change for public employers through Public Act 152 (PA 152) which creates a hard cap on the amount a public employer may contribute to a medical benefit plan for its employees and/or elected officials. PA 152 provides an option to annually elect an 80% contribution cap rather than the hard cap, and it contains a provision to allow a local unit to annually opt-out entirely.Annual elections for opt-out or the 80% cap must be made each year prior to the beginning of the medical benefit plan coverage year.
The State released new hard cap amounts on September 18, 2014 which will apply to medical benefit plan years beginning on or after January 1, 2015. This represents an increase of 2.3%. Michigan Department of Treasury