Public Act 152 limits what public employers spend on health coverage.
Michigan’s Publicly Funded Health Insurance Contribution Act, known as Public Act 152 of 2011, sets how much public employers can spend on employee health plans.
The Basics for Employers.
A plain-English summary. This is general information, not legal advice, and the rules change, so check the current text.
Hard Cap or Cost Share
Unless it opts out, a public employer either stays under an annual hard cap on its plan costs or pays no more than 80 percent of the total.
Annual Limits
The Michigan Department of Treasury publishes the cap amounts each year, so the numbers move.
Annual Opt-Out Vote
A governing body can exempt itself for the next plan year by a two-thirds vote taken before that plan year begins, and the vote has to be repeated every year.
How it plays out.
Public Act 152 of 2011 limits what Michigan public employers can spend on employee health benefits. A public employer has to choose one of three paths: a hard cap on the employer contribution, an 80/20 split of premium costs, or an exemption by a vote of its governing body.
The choice has to be made each year, and the cost comparison depends on the plan, the number of covered people and the tier mix. Changing carriers or plan designs can move an employer from one path to another.
This applies to public employers such as school districts, townships, cities and counties. Private employers are not affected.
Where This Shows Up in Your Plan.
Caregiver Support, Sick Time and Paid Leave: Benefits That Work With Your Health Plan
How leave and sick-time policies fit alongside your health plan.
Employer Benefits Guides: Eligibility, Plan Design, Life Events and Rules
Eligibility, plan design and life-event rules in one place.
The annual process.
Find the Current Cap
Check the hard cap amounts published for the year.
Model Each Path
Compare the cap, the 80/20 split and the exemption.
Prepare the Board Packet
Give the governing body clear numbers.
Record the Decision
Document the vote and the path chosen.
Mistakes to avoid.
Using Last Year’s Cap
Amounts change each year.
Ignoring Tier Mix
The mix of single and family coverage changes the math.
No Record of the Vote
The decision should be documented.
Other Rules Employers Work With.
COBRA Continuation Coverage
29 U.S.C. 1161
Family and Medical Leave Act
29 U.S.C. Chapter 28
USERRA
38 U.S.C. Chapter 43
Laws and Rules Referenced
Publicly Funded Health Insurance Contribution Act (MCL 15.561) — The statute or rule text from its official or public source.
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