SB 1136 — Public employees and officers: compensation and benefits; public employer contribution to medical benefit plan; modify. Amends title & secs. 3, 4 & 5 of 2011 PA 152 (MCL 15.563 et seq.) & adds secs. 3a & 4a.

Summary

Public employees and officers: compensation and benefits; public employer contribution to medical benefit plan; modify. Amends title & secs. 3, 4 & 5 of 2011 PA 152 (MCL 15.563 et seq.) & adds secs. 3a & 4a.

Bill Text

• Introduced Senate Introduced Bill Current pdf

Compared against the Michigan Compiled Laws as published AI-generated reading aid — verify against the official bill.

The bill amends the existing law to introduce new payment limits for public employers regarding medical benefit plans and establishes additional sections outlining these limits and adjustments.

• MCL 15.563

  certain accounts used for health care costs, than a total amount equal to $5,500.00 times the number of employees and elected public officials with single-person coverage, $11,000.00 times the number of employees and elected public officials with individual-and-spouse coverage or individual-plus-1-nonspouse-dependent coverage, plus $15,000.00 times the number of employees and elected public officials with family coverage, for a medical benefit plan coverage year beginning on or after January 1, 2012. → certain accounts used for health care costs, than a total amount equal to $5,500.00 times the number of employees and elected public officials with single-person coverage, $11,000.00 times the number of employees and elected public officials with individual-and-spouse coverage or individual-plus-1-nonspouse-dependent coverage, plus $15,000.00 times the number of employees and elected public officials with family coverage, for a medical benefit plan coverage year beginning on or after January 1, 2012. Subject to sections 3a and 4a.

  It clarifies that the payment limits are subject to new sections for further adjustments.

• MCL 15.563

  subject to sections 3a and 4a,

  It removes the subject provision from section 4.

• MCL 15.563

  A public employer may allocate its payments for medical benefit plan costs among its employees and elected public officials as it sees fit. → A public employer may allocate its payments for medical benefit plan costs among its employees and elected public officials as it sees fit. By April 1 of each year after 2026, the state treasurer shall adjust the maximum payment under this section for single-person coverage and family coverage for medical benefit plan coverage years beginning the succeeding calendar year, based on any change in the medical care component of the average of the Michigan health insurance rates, as approved by the department of insurance and financial services, or by 3%, whichever is greater.

  It explicitly outlines the annual adjustment procedure for rates based on Michigan health insurance rates.

• MCL 15.564

  80% of the total annual costs of all of the medical benefit plans it offers or contributes to for its employees and elected public officials. → 80% of the total annual costs of all of the medical benefit plans it offers or contributes to for its employees and elected public officials. Subject to sections 3a and 4a,

  It introduces additional limitations and clarifications regarding the employer's contributions.

• MCL 15.564

  For purposes of this subsection and section 4a, total annual costs includes include the premium or illustrative rate of the medical benefit plan and all employer payments for reimbursement of co-pays, deductibles, and payments into health savings accounts, flexible spending accounts, or similar accounts used for health care → For purposes of this subsection and section 4a, total annual costs includes the premium or illustrative rate of the medical benefit plan and all employer payments for reimbursement of co-pays, deductibles, and payments into health savings accounts, flexible spending accounts, or similar accounts used for health care, any offers of medical benefit plans for employees based on the patient protection and affordable care act, Public Law 111-148, as amended by the health care and education reconciliation act of 2010, Public Law 111-152, other federal or state sponsored plan, or any federal or state taxes.

  It expands the definition of total annual costs to include specific federal and state regulations.

• MCL 15.564

  the stated expiration date of the contract or the date the contract is extended or renewed.

  It clarifies provisions regarding collective bargaining agreements not applying until contracts are amended.

• MCL 15.565

  If → If Except as otherwise provided in subsection (3),

  It clarifies that certain exceptions apply to the requirements in section 5.

• MCL 15.565

  the requirements of sections 3 or 4 do not apply → the requirements of section 3 or 4 do not apply to an employee covered

  It specifies when the requirements do not apply in relation to collective bargaining agreements.

Action History

1. September 15, 2026

   9/15/2026 - referred to Committee on Government Operations

Sponsors

• Kevin Hertel · Primary

Votes

Subjects