In December, the House began work on House Bill 6058 which had just been introduced before the Thanksgiving break. The bill makes changes to Public Act 152, also known as the hard cap or 80/20 law. This law dictates costs public employers pay regarding health care costs.

We had concerns from the beginning with the costs this bill could create for districts in the middle of the fiscal year and many questions about the details and intent of the bill. It is agreed that PA152 and the hard cap need to be updated as it has not kept pace with the actual rising healthcare costs.  This has resulted in higher costs for our employees. However, we also wanted to make sure this is done in a fair manner for both employees and districts.

The bill was approved by House Committee on Dec 5 and brought up for debate and passage on the 13^th.  MASB had conversations with the bill sponsor, the MEA and other public unions to to sort out issues and address concerns. However, they were not addressed before passage in the House.

HB6058 would raise the cap on how much employers can contribute to employee health coverage costs by about 7%. The cap would increase each year by 3% or the average health care insurance increase, whichever is greater. It would also require all employers to pay at least 80% of the costs. The changes would go into effect upon the negotiation of a new contract or contract renewal. However, if a contract states that its hard cap is defined by PA152, the amount will jump as soon as the law goes into effect.

The Senate did not hold any committee hearings on the bill and it was discharged to the Floor for consideration and passed on Dec. 20.  Because the House abruptly adjourned for the year on the 19^th, the Senate was not able to make changes to the bill and be able to send it to the Governor. The House would have to approve any changes made by the Senate. We urged the Senate to allow more work on the bill.

The bill is now headed to the Governor for her consideration.  MASB, along with 5 other organizations, sent a letter outlining our concerns to the Governor for her to consider as she decides to sign the bill or not. We urge you to contact the Governor’s office to share the effect this bill would have on your district and its budget, including any cuts you may need to make. Her office can best be reached at 517-335-7858 or through her website.