2013 Senate Bill 542 / Public Act 270

Permit more generous government employee health benefits

Introduced in the Senate

Sept. 25, 2013

Introduced by Sen. Bruce Caswell (R-16)

To increase from $11,000 to $13,455 the “hard cap” on the amount that a local government or school district can spend for an "individual-plus-spouse" employee health care policy under a <a href="http://www.michiganvotes.org/2011-SB-7">2011 law</a> limiting such benefits. The Senate Fiscal Agency reports this will increase state costs by $19.4 million annually; since there are seven-times more school and local employees than state employees the total cost to taxpayers could be much higher. The bill would also include “individual-plus-one nonspouse-dependent” coverage under $15,000 "family" policy cap, include elected officials in the base used to establish a local government’s “average” cost per employee, exclude payments to employees who take cash instead of insurance benefits, and revise some other details in ways that permit making the overall benefits more generous.

Referred to the Committee on Reforms, Restructuring, and Reinventing

Oct. 3, 2013

Reported without amendment

With the recommendation that the bill pass.

Oct. 8, 2013

Amendment offered

To exclude from the cost-cap formula any payments the state, a school district or a local government must make under the federal health care law (Obamacare). This would have the effect of allowing more generous benefits than if these extra payments were included in the formula.

The amendment passed by voice vote

Passed in the Senate 38 to 0 (details)

Received in the House

Oct. 8, 2013

Referred to the Committee on Financial Liability Reform

Dec. 10, 2013

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

Substitute offered

To adopt a version of the bill that increases the cap on spending by a smaller amount.

The substitute passed by voice vote

Amendment offered by Rep. Earl Poleski (R-64)

To clarify the construction of the bill.

The amendment passed by voice vote

Dec. 11, 2013

Passed in the House 108 to 1 (details)

To increase from $11,000 to $12,250 the “hard cap” on the amount that a local government or school district can spend for an "individual-plus-spouse" employee health care policy under a <A href="http://www.michiganvotes.org/2011-SB-7">2011 law</A> limiting such benefits.

Received in the Senate

Dec. 11, 2013

Passed in the Senate 38 to 0 (details)

To concur with the House-passed version of the bill.

Signed by Gov. Rick Snyder

Dec. 22, 2013