Michigan Senate Passes controversial bill requiring public employees to pay 20% health insurance premiums

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) May 26, 2011 -- On May 18, 2011 the State of Michigan Senate voted to approve the “Publicly Funded Health Insurance Contribution Act” passing 25-13. The passing of the bill by the Senate means that it will now move on to the Republican held House of Representatives, where it will more than likely be passed, and ready for signature from Governor Snyder. What the bill proposes is that now teachers and local government workers will be required to contribute 20% of their health insurance premiums.

The bill will limit the amount public employers can pay for health care premiums to 80% beginning in January 2012. Current labor contracts would remain in place until they have expired. The Law however would not affect state and university employees unless voters approved a constitutional amendment. Senate Republicans feel that although the bill will be met with much resentment and backlash from Democrats and union members, it is necessary in order to contain the state’s skyrocketing health care costs and would create true cost containment reform.

Cornerstone Municipal Advisory Group will continue to monitor the progress of this bill and keep you informed regarding any new developments.

government spending     health care     health insurance     Health Insurance Contribution     Michigan economy     public employee unions     Rick Snyder     state of michigan