Public Act 152 limits the amount that a public employer can contribute for employee medical benefit plans. PA 152 provides that public employers may elect a “hard cap,” pay no more than 80% of the total amount of annual medical costs, or elect to exempt itself from the requirements under PA 152. For public employers that elected the “hard cap” dollar limit under PA 152, the dollar limits are updated annually.
For medical benefit plan coverage years beginning on or after January 1, 2016, the “hard cap” dollar limit on the amount that a public employer may contribute to a medical benefit plan equals the sum of the following:
- $6,142.11 times the number of employees and elected public officials with single-person coverage
- $12,845.04 times the number of employees and elected public officials with individual-and-spouse coverage or individual-plus-1 nonspouse-dependent coverage
- $16,751.23 times the number of employees and elected public officials with family coverage
to visit the Michigan Treasury’s website which provides more information on PA 152 and the updated limits.