Title
Resolution to Approve a 2026 Plan Year Exemption of the Publicly Funded Health Insurance Contribution Act, Public Act 152 (8 Votes Required)
Memorandum
Staff is requesting Council approval of a one-year exemption from Public Act 152 requirements to maintain compliance with state law and avoid potential loss of Michigan Transportation Fund distribution. Under the Act, exemption approval requires 2/3 vote of the governing body.
Beginning September 30, 2015, and annually each September 30 thereafter, local agencies must certify compliance with Section 18j(1) of Public Act 51 of 1951, MCL 247.668j(1). A local road agency must certify that is has developed an employee compensation plan for its employees as described or the local road agency must certify that medical benefits are offered to its employees or elected public official in compliance with the publicly funded health insurance contribution act, 2011 PA 152, MCL 15.561 to 15.569, or, that it does not offer medical benefits to its employees or elected public officials.
Failure to comply with certification of MCL 247.668j may result in the withholding of all or part of the distributions made to the local road agency from the Michigan Transportation Fund.
The City of Ann Arbor is unable to certify compliance of its compensation plan as described in the act; therefore, has certified compliance for Section 18j under one of the options offered under the publicly funded health insurance contribution act, 2011 PA 152, MCL 15.561 to 15.569. Public Act 152 offers three options for compliance with the requirements of the Act as follows:
* Section 3 - "Hard Caps" Option - limits a public employer's total annual health care costs for employees based on coverage levels, as defined in the Act;
* Section 4 - "80%/20%" Option - limits a public employer's share of total annual health care costs to not more than 80%. This option requires an annual majority vote of the governing body;
* Section 8 - "Exemption" Option -...
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